Vraj Iron And Steel IPO Lists With 16% Premium Despite Robust Subscription
During its subscription phase, Vraj Iron IPO receives 174 times subscription from Qualified Institutions, whereas overall issue fills 126.36 times
Vraj Iron initial public offering (IPO) which attempted to raise Rs 171 crore from the public market debuted with decent gains of 16 per cent in the Wednesday trading session.
The IPO listed with 16 per cent premium on the National Stock Exchange at Rs 240 against its issue price of Rs 207.
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.
Aryaman Financial Services was the book running lead manager and Bigshare Services was the registrar to the offer.
Analysts Advice
“Vraj Iron and Steel is aiming to be a cost-efficient steel manufacturer and penetrate deeper into the regional market to capture a higher share of the existing market. We, therefore, have a positive view on the company and advise the participants who have been allocated with the issue to hold the shares from a medium to long term perspective,” said Parth Shah, Research analyst, StoxBox.
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.
