Vraj Iron IPO Allotment Status

How to check Vraj Iron IPO allotment status on BSE

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment status by clicking on the link below 

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option
• Under Issue Name – Select Vraj Iron and Steel from the drop down box
• Enter the Application Number exactly as in the acknowledgement slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verify that you are not a robot
• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters. You can either input the application number or you can input your PAN.

Once the data is inputted and the captcha verification is done, the allotment status will be displayed on the screen in front of you informing about the number of shares of Vraj Iron and Steel allotted into your demat account. It is suggested that you take a screenshot of this output page and store for future reference. You can verify the demat credit by the close of 02nd July 2024.

Vraj Iron IPO allotment date - July 01, 2024.

Checking the Vraj Iron IPO allotment status on Bigshare Services Private

Visit the Bigshare Services registrar website for Vraj Iron IPO status by clicking on the link below:

https://www.bigshareonline.com/ipo_Allotment.html

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Bigshare Services Private Ltd by clicking on the IPO Allotment Status link displayed prominently on the home page. It all works the same.

Here you are given the choice to select 3 servers viz. Server 1, Server 2, and Server 3. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 3 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Vraj IPO from the dropdown box. The allotment status will be finalized on 01st July 2024, so in this case, you can access the details on the registrar website either late on 01st July 2024 or by middle of 02nd July 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO.

• Firstly, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip.

• Secondly, you can search by Beneficiary ID of your demat account. From the dropdown box, you must first select the depository name where the account is held i.e. NSDL or CDSL. In the case of NSDL, enter the DP id and Client id in separate boxes as provided. In case of CDSL, just enter the CDSL client number. Remember that the NSDL string is alphanumeric while the CDSL string is numeric. After that you can click the Search Button in both cases.

• Thirdly, you can also search by Income Tax PAN number. Once you select PAN from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.

The IPO status with number of shares of Vraj Iron and Steel allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 02nd July 2024. The stock of Vraj Iron and Steel will appear in the demat account under the ISIN Number (INE0S2V01010).

Subscription status of Vraj Iron and steel IPO

One of the key determinants of your allotment is the extent of subscription for various categories. Here is the final subscription status of the Vraj Iron and Steel IPO as at close on 28th June 2024, at 7.00 PM.

Data Source: BSE / NSE

The response to the IPO of Vraj Iron and Steel was strong overall, and it was also quite strong for the retail portion and the HNI portions. The retail subscription of 54.93 times gives a rather low to modest opportunity of allotment in the IPO. However, the investors can still be hopeful since the SEBI norms on retail IPO allotment focuses on trying to allot the basic lot size to as many unique investors as possible. The same can be checked using the allotment checking modus operandi explained above. You just need to wait for the basis of allotment to be finalized on 01st July 2024 and then the actual picture will be clear. The HNI / NII portion at 208.81 times and the QIB portion at 163.90 times was also robust.

Allocation mix of shareholders for Vraj Iron and Steel

The issue was open for QIBs (qualified institutional buyers), retail investors and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, the retail and the HNI NII. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP

Here it must be noted that the 24,78,259 shares allocated to the anchor investors on 25th June 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota available in the IPO has reduced from 49.11% before the anchor allocation to 20.35% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue.

Next steps after the closure of the Vraj Iron and Steel IPO

The issue opens for subscription on 26th June 2024 and closes for subscription on 28th June 2024 (both days inclusive). The basis of allotment will be finalized on 01st July 2024 and the refunds will be initiated on 02nd July 2024. In addition, the demat credits are expected to also happen on 02nd July 2024 and the stock will list on 03rd July 2024 on the NSE and the BSE. The credits to the demat account to the extent of shares allotted will happen by the close of 02nd July 2024 under ISIN (INE0S2V01010). 

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very high in the IPO; both in the Retail segment and also in the HNI / NII segment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.

About the Vraj Iron IPO

The stock of Vraj Iron and Steel has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹195 to ₹207 per share. The IPO of Vraj Iron and Steel will be entirely a fresh issue of shares with no offer for sale (OFS) component. The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. The OFS is just a transfer of ownership; and hence neither EPS nor equity dilutive. The fresh issue portion of the IPO of Vraj Iron and Steel comprises the issue of 82,60,870 shares (82.61 lakh shares approximately), which at the upper price band of ₹207 per share will translate into a fresh issue size of ₹171.00 crore.

Since there is no offer for sale component in the IOP, the fresh issue size will double up as the overall IPO size too. Therefore, the total IPO of Vraj Iron and Steel will also comprise of a fresh issue of 82,60,870 shares (82.61 lakh shares approximately) which at the upper end of the price band of ₹207 per share aggregates to total issue size of ₹171.00 crore. The IPO of Vraj Iron and Steel will be listed on the NSE and the BSE on the IPO mainboard.

The IPO of Vraj Iron and Steel  is entirely a fresh issue, and the funds will be used funding capex at Bilaspur plant, repayment of borrowings and for general corporate expenses. The promoters of the company are Gopal Sponge and Power Private Ltd, VA Transport Private Ltd and Vijay Anand Jhawar. The promoters hold 99.99% stake in the company, which will get diluted post the IPO to 74.95%. The IPO will be lead managed by Aryaman Financial Services Ltd; while Bigshare Services Ltd will be the IPO registrar