Vraj Iron and Steel IPO Price: ₹195 to ₹207 per share
IPO Date Range: 26 June 2024 - 28 June 2024
Founded in June 2004, Vraj Iron and Steel Limited specializes in manufacturing Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. Operating from two expansive manufacturing facilities spanning 52.93 acres in Raipur and Bilaspur, Chhattisgarh, the company has positioned itself as a significant player in the steel industry. As of March 31, 2023, their combined annual manufacturing capacity reaches 231,600 tons, encompassing intermediate and final products.
Vraj Iron and Steel Limited's Raipur and Bilaspur plants collectively contribute to their robust production capabilities. The Raipur facility also includes a captive power plant with a current capacity of 5 MW, enhancing operational efficiency. Looking ahead, the company plans to expand both its manufacturing and power generation capacities. By the fiscal year 2024-25, they aim to increase their manufacturing capacity to 500,100 tons per annum, and boost the captive power plant capacity to 20 MW. These expansions are poised to meet growing market demands and strengthen their competitive edge in the industry.
The company's product portfolio caters to diverse industrial customers and end-users, offering Sponge Iron, TMT Bars, MS Billets, and various by-products, including Dolochar, Pellets, and Pig Iron. Their offerings serve both domestic and international markets, distributed directly and through a network of brokers and dealers. Notably, their Raipur Plant has attained the ISO 14001:2015 certification for Environmental Management Systems, underscoring their commitment to sustainable manufacturing practices and continuous improvement initiatives.
As of June 30, 2023, Vraj Iron and Steel Limited employs a dedicated workforce of 533 individuals, comprising 298 permanent employees and 235 contract workers. The workforce is distributed across their corporate office, Raipur Plant, and Bilaspur Plant, contributing to the company's operational efficiency and growth trajectory. With a focus on expanding capacities and enhancing product offerings, Vraj Iron and Steel remains poised for further expansion and sustained success in the steel manufacturing sector.
| IPO Date | June 26, 2024 to June 28, 2024 |
| Listing Date | Wednesday, July 3, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹195 to ₹207 per share |
| Lot Size | 72 Shares |
| Total Issue Size | 8,260,870 shares (aggregating up to ₹171.00 Cr) |
| Fresh Issue | 8,260,870 shares (aggregating up to ₹171.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 24,721,750 |
| Share holding post issue | 32,982,620 |
Bidders have the opportunity to bid for a minimum of 72 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 72 | ₹14,904 |
| Retail (Max) | 13 | 936 | ₹193,752 |
| S-HNI (Min) | 14 | 1,008 | ₹208,656 |
| S-HNI (Max) | 67 | 4,824 | ₹998,568 |
| B-HNI (Min) | 68 | 4,896 | ₹1,013,472 |
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| IPO Open Date | Wednesday, June 26, 2024 |
| IPO Close Date | Friday, June 28 2024 |
| Basis of Allotment | Monday, July 1, 2024 |
| Initiation of Refunds | Tuesday, July 2, 2024 |
| Credit of Shares to Demat | Tuesday, July 2, 2024 |
| Listing Date | Wednesday, July 3, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 28, 2024 |
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Vraj Iron and Steel Limited saw a 24.87% rise in revenue and an 88.12% increase in profit after tax (PAT) from the financial year ending on March 31, 2022, to March 31, 2023.
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 | 31 Dec 2023 |
|---|---|---|---|---|
| Assets | 126.33 | 150.77 | 191.54 | 253.05 |
| Revenue | 290.93 | 414.38 | 517.42 | 304.81 |
| Profit After Tax | 10.99 | 28.70 | 54 | 44.58 |
| Net Worth | 57.79 | 87.14 | 140.92 | 187.50 |
| Reserves & Surplus | 52.85 | 82.19 | 135.97 | 162.78 |
| Total Borrowing | 45.78 | 42.51 | 22.98 | 49.30 |
| KPI | Values |
|---|---|
| Market Cap | Rs 682.74Cr |
| EPS | Rs 21.84 |
| P/E (x) | 9.48 |
| ROE | 23.78% |
| ROCE | 25.34% |
| Debt/ Equity | 0.27 |
| RoNW | 23.78% |
| PAT Margin | 3.61% |
The company intends to allocate the Net Proceeds as follows:
Prospectus: Official documents that provide detailed information about the IPO and the company. Vraj Iron and Steel Limited DRHP and Vraj Iron and Steel Limited RHP.
An IPO, or Initial Public Offering, is the process by which a private company offers its shares to the public for the first time to raise capital.
Companies go public to raise capital for expansion, reduce debt, or for other corporate purposes. It also provides liquidity to existing shareholders.
The price range for the"Vraj Iron and Steel Limited" IPO is ₹195 to ₹207 per share.
The "Vraj Iron and Steel Limited" IPO is expected to be listed on Wednesday, 3 July 2024.
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