Vraj Iron and Steel IPO Closes With 126 Times Subscription; Allotment On 02 July
Vraj Iron and Steel IPO closes on 28 June. The allotment is scheduled on 01 July, followed by the listing on the NSE and BSE on 03 July
Vraj Iron initial public offering which attempted to raise Rs 171 crore from the public market closes with a robust subscription on 28 June.
During its subscription phase, Vraj Iron IPO received 174 times subscription from Qualified Institutions, whereas retail subscription stood at 58.31 per cent. Overall, the issue was filled 126.36 times.
The IPO consisted exclusively of fresh issues of up to Rs 171 crore with a price band fixed at Rs 195 to 207 per equity share.
Vraj Iron and Steel IPO opened on 26 June and closed on 28 June. The allotment is scheduled on 01 July, followed by the listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 03 July.
Aryaman Financial Services is the book running lead managers and Bigshare Services is the registrar to the offer.
Analysts Advice
“Vraj Iron and Steel is rapidly expanding to keep up with the growing demand for its goods. All expansion plans should be operational starting in the first quarter of FY26. The issue appears reasonably priced, based on the FY24 annualised earnings. We expect a listing at around Rs 280 to 290 per share, resulting in a listing gain of around 35 per cent,” said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.
IPO Objectives
Company intends to utilise the net proceeds of Rs 170 crore towards the funding of capital expenditure of expansion project at Bilaspur plant. Additionally, the funds will also be used for the repayment of borrowing obtained from the HDFC Bank for the same.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
Stanley holds the fourth position in terms of revenue in the home furniture segment in India for Fiscal 2022.
The firm registered revenue of Rs 517 crore in FY23, compared to Rs 414 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 54 crore in FY23 compared to Rs 28.7 crore in FY22.
Overall, revenue and PAT increased by 34.87 cent and 88.12 per cent respectively.
