Shares of Vraj Iron & Steel Ltd. ended on the BSE on Wednesday at Rs 251.9 apiece, a premium of 21.6% over its issue price of Rs 207. On the National Stock Exchange, the stock closed at Rs 252 per share, a premium of 21.7%.
The initial public offering of Vraj was subscribed 119.04 times on its third and final day, led by demand from non-institutional investors. The IPO consisted of a fresh issue of 82.6 lakh shares worth approximately Rs 171 crore. There was no offer for sale. The company, which manufactures sponge iron, MS billets and TMT bars, set a price band of Rs 195–207 per share for its IPO.
The company plans to use the net proceeds for loan repayment or prepayment from HDFC Bank Ltd. and capital expenditure for the expansion project at the Bilaspur plant. The remaining funds will be used for general corporate purposes.
About Vraj Iron & Steel
Vraj Iron & Steel, established in June 2004, is a manufacturer of sponge iron, MS billets, and TMT bars, and is marketed under the Vraj brand. The company operates two manufacturing plants located in Chhattisgarh.
As of March 31, 2023, these plants have a combined installed capacity of 2.31 lakh tonnes per year, encompassing both intermediate and final products.
The production capacity includes 57,600 tonnes per annum of MS billets, which are utilised by the company's rolling mills to produce TMT bars with a capacity of 54,000 tonne per annum.
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