The Initial Public Offer i.e. IPO of Vraj Iron and Steel Limited will open today. Retail investors can invest in this IPO till June 28. On July 3, the company’s shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Through this IPO, the company wants to raise ₹ 171 crore. For this, the company is issuing 8,260,870 fresh shares worth a total of ₹ 171 crore. This is a completely fresh IPO, in which the existing investors and promoters of the company are not selling a single share through the Offer for Sale. Retail investors can bid for a maximum of 936 shares. Vraj Iron and Steel Limited has fixed the price band of this issue at ₹ 195-₹ 207. Retail investors can bid for a minimum of one lot i.e. 72 shares. If you apply for 1 lot as per the IPO’s upper price band of ₹207, then you will have to invest ₹14,904 for it. At the same time, retail investors can apply for a maximum of 13 lots i.e. 936 shares. For this, investors will have to spend ₹193,752 as per the upper price band. Vraj Iron & Steel’s premium in the grey market is 36.23% Before the IPO opened, the company’s stock has reached a premium of 36.23% i.e. ₹75 per share in the grey market. In such a situation, as per the upper price band of ₹207, its listing can happen at ₹282. However, only an estimate can be made from this, the listing price of the share is different from the grey market price. 35% of the issue reserved for retail investors 50% of the company’s issue has been reserved for Qualified Institutional Buyers (QIB). Apart from this, about 35% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII). What is an IPO? When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
