Vraj Iron IPO shares to make stock market listing today: What to expect as GMP takes big hit

Shares of Vraj Iron and Steel Ltd are to make their Dalal Street debut on today, that is Wednesday, July 03. If one goes by the signals from the grey market premium (GMP), the stock is likely to list at a strong premium at the bourses amid the mixed sentiments of the listed markets.
 

Ahead of its listing, shares of Vraj Iron and Steel were commanding a grey market premium of Rs 50 apiece, suggesting a listing pop of 24 per cent to the investors. However, the GMP stood at Rs 67-70 apiece a day earlier and Rs 75-80 apiece at the closing of the bidding.
 

Vraj Iron and Steel has shown positive results thus far and is optimistic about continuing this trend after expanding, said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360. “The issue appears reasonably priced based on the FY24 annualized earnings. We expect a listing at around Rs 275-285 per share, resulting in a listing gain of around 33 per cent,” he adds.
 

The IPO of Vraj Iron and Steel was sold in the price band of Rs 195-207 per share with a lot size of 72 shares. The issue was open for bidding between bidding June 26 and June 28. The Raipur-based company raised 171 crore via its primary offering, which entirely included a fresh share sale of Rs 82,60,870 equity shares.
 

Vraj Iron & Steel has generated a strong grey market premium. This surge aligns with the extraordinary subscription status for the issue, showcasing investor confidence in the company’s potential, said Shivani Nyati, Head of Wealth at Swastika Investmart.
 

“The company’s financial performance paints a positive picture. Vraj Iron & Steel has a proven track record of consistent profitability over the past three years, demonstrating its ability to generate healthy returns. The reasonable valuations coupled with strong fundamentals, impressive subscription, suggests a good listing with significant gains for early investors,” she said.
 

The issue was overall subscribed a stellar 119.04 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 163.90 times The quota for non-institutional investors was subscribed 208.81 times. The portions reserved for retail investors saw bidding for 54.93 times during the three-day bidding process.
 

Vraj Iron and Steel, incorporated in June 2004, manufactures Sponge Iron, MS Billets, and TMT bars under the brand Vraj. The company’s product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.
 

Vraj Iron and Steel received strong demand from participants across categories. We expect shares to list at a premium of about 35 per cent to its issue price of Rs 207 per share, said Parth Shah, Research Analyst at StoxBox. “We have a positive view on the company and advise participants who have been allotted shares to hold it from a medium to long term perspective,” he said.
 

Brokerage firms were mostly positive on the issue, suggesting investors to subscribe to it. Aryaman Financial Services is the book running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services is the registrar for the issue.  Shares of the company shall be listed on both BSE and NSE.