The initial public offering of Vraj Iron and Steel enters Day 2, after it was subscribed 3.47 times on the opening day, thanks to a strong response from retail investors and high net worth individuals.

The ₹171-crore initial public offering from the Raipur-based company will close on June 28 (Friday). The company has pegged the price band at ₹195-207. The entirely fresh issue has a lot size of 72 equity shares and in multiples of 72 thereafter.

The IPO proceeds will be used for expansion projects at its Bilaspur facility and for general corporate purposes.

Vraj Iron and Steel has set aside 15 per cent of the issue for non-institutional institutional investors (NII), up to 50 per cent for qualified institutional buyers (QIB), and 35 per cent for retail investors. While the retail investors’ portion was subscribed over five times, that of non-institutions was subscribed by 3.5 times. The QIB portion, on the other hand, was undersubscribed at 0.61 times on Day 1.

The company manufactures sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars. It operates through two manufacturing p 3,47 lants in Chhattisgarh, Raipur and Bilaspur. After implementation of the expansion project, the company expects to increase its aggregate installed capacity from 2,31,600 tonnes per annum (TPA) to 500,100 TPA, and its captive power plants’ aggregate installed capacity to 20 MW from 5 MW, the RHP noted.

On Tuesday, it raised ₹51.30 crore by allotting 24,78,259 shares to six anchor investors -- Volrado Venture Partners Fund IV, Capri Global Housing Finance, Ashika Global Securities, Rajasthan Global Securities, Leading Light Fund VCC - The Triumph Fund and Astorne Capital VCC-Arven -- at ₹207 apiece.

Aryaman Financial Services is the sole book-running lead manager, while Bigshare Services is the registrar for the IPO. The company’s equity shares will be listed on the NSE and BSE.

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