Vraj Iron shares settle nearly 22% higher in debut trade

New Delhi: Shares of Vraj Iron And Steel Ltd on Wednesday ended with a premium of nearly 22 per cent against the issue price of Rs 207.

The stock listed at Rs 240, recording a jump of 15.94 per cent on both the BSE and NSE.

It zoomed 21.71 per cent to settle at Rs 251.95 -- its upper circuit limit -- on the BSE.

On the NSE, the stock climbed 21.73 per cent to settle at Rs 252 -- its highest trading permissible limit for the day.

The company's market valuation stood at Rs 831 crore.

In traded volume terms, 2.86 lakh shares of the company were traded at the BSE and 20.45 lakh shares at the NSE during the day. The initial public offer of Vraj Iron and Steel got subscribed 119 times on the last day of bidding on Friday helped by heavy participation from institutional investors.

The Rs 171-crore initial share sale was entirely a fresh issue of equity shares with no offer-for-sale component.

Shares were available for public subscription in the range of Rs 195 to Rs 207 per scrip.

The company will use the IPO proceeds for expansion projects at the Bilaspur facility in Chhattisgarh and general corporate purposes.

Raipur-based Vraj Iron and Steel is into manufacturing sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars.

It operates through two manufacturing plants at Raipur and Bilaspur in Chhattisgarh.