Vraj Iron and Steel IPO day 3: GMP, subscription status to review. Apply or not?

The Vraj Iron and Steel IPO, which began on 26th June 2024 and ends today, has received a robust response from primary market investors, a clear sign of confidence in the company. The sponge iron maker company has set a Vraj Iron and Steel IPO price band of ₹195 to ₹207 per equity share, aiming to raise ₹171 crore from its public offer through the issuance of fresh shares. The strong subscription status in the primary market suggests a positive sentiment towards this mainboard IPO. According to stock market observers, shares of the company are available at a premium of ₹90 in the grey market today.

Vraj Iron and Steel IPO GMP today As mentioned above, Vraj Iron and Steel IPO GMP (grey market premium) is ₹90, which is ₹4 higher than Thursday's GMP of ₹86. The GMP is a key indicator of the market's perception of the IPO's potential performance. They said that robust Vraj Iron and Steel IPO subscription status and bull trend on Dalal Street could be the possible combination of reasons fueling grey market sentiments regarding Vraj Iron and Steel IPO. However, stock market experts advised primary market investors to stick with the basics as there are better indicators than grey market premiums for the success or failure of a public issue.

Vraj Iron and Steel IPO subscription status By 3:00 PM on day 3 of bidding, the mainboard IPO was subscribed 89.61 times, the retail portion of the book build issue was booked 89.61 times, the NII segment was filled 175.37 times, and the QIB portion was booked 99.00 times.

Vraj Iron and Steel IPO review GEPL Capital, in their review of the Vraj Iron and Steel IPO, has given a 'subscribe' tag, stating, "Vraj Iron and Steel is a leading manufacturer of Sponge Iron, M.S. Billets, and TMT bars, strategically located for operational efficiency and poised for growth through value-added products and ongoing expansions. The company's location is a strategic advantage that bodes well for its future growth. The company has demonstrated a strong financial performance over the past three years, with revenue/EBITDA/PAT growing by 21%/41%/69% CAGR. The steel industry is set for growth driven by urbanization, infrastructure development, and increased demand in sectors like automobiles. Globally, steel demand is expected to remain steady. In India, per capita steel consumption is lower than the global average but is projected to increase significantly by 2031, supported by government policies and domestic demand growth of 9-11% annually until 2026. Expansion plans at the Bilaspur plant aim to leverage existing infrastructure for improved margins and operational control across the value chain. Hence, we recommend a "Subscribe" rating for the issue."

Ventura Securities has also given a 'subscribe' tag to this public issue, saying, "Vraj Iron and Steel currently operate through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres and has a major presence in Chhattisgarh. As of December 31, 2023, the aggregate installed capacity of their manufacturing plants was 2,31,600 tons per annum. The manufacturing plant at Raipur also includes a captive power plant with an aggregate installed capacity of 5 MW as of December 31, 2023. The company is in the process of increasing the capacity of its manufacturing plants and captive power plant and expects to increase its aggregate installed capacity from 2,31,600 Tons per annum to 5,00,000 Tons per annum and the captive power plant aggregate installed capacity from 5 MW to 20 MW."