Vraj Iron and Steel Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | June 26, 2024 to June 28, 2024 |
| Listing Date | [.] |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 195 to ₹ 207 per share |
| Lot Size | 72 Shares |
| Total Issue Size | 82,60,870 shares (aggregating up to ₹ 171.00 Cr) |
| Fresh Issue | 82,60,870 shares (aggregating up to ₹ 171.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 2,47,21,750 |
| Shareholding post issue | 3,29,82,620 |
About Vraj Iron and Steel Limited IPO
Vraj Iron and Steel is engaged in the manufacturing of Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. They currently operate through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. Their product offerings such as Sponge Iron, TMT Bar, MS Billets, and by-products Dolochar, Pellet, and Pig Iron cater to a mix of customers that consist of industrial customers and end-users. They sell their products directly as well as through brokers/dealers. Vraj Iron and Steel IPO is a book-built issue of Rs 171.00 crores.
The issue is entirely a fresh issue of 0.83 crore shares. Vraj Iron and Steel IPO opens for subscription on June 26, 2024 and closes on June 28, 2024. The allotment for the Vraj Iron and Steel IPO is expected to be finalized on Monday, July 1, 2024. Vraj Iron and Steel IPO price band is set at ₹195 to ₹207 per share. The minimum lot size for an application is 72 Shares. Aryaman Financial Services Limited is the book-running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.
Vraj Iron and Steel IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Company & Financials
Incorporated in June 2004, Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company runs two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres. As of March 31, 2023, the total installed capacity of the manufacturing plants was 231,600 tons per year, including intermediate and final products. The company currently has a production capacity of 57,600 TPA of MS Billets, which its rolling mills can use to manufacture TMT Bars with a production capacity of 54,000 TPA. The company's product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users. The Raipur Plant has achieved the Environmental Management System Certification under the new ISO 14001:2015 standard.
Vraj Iron and Steel IPO Review
The company is engaged in sponge iron, TM Bars, M S Billets manufacturing and marketing. With its captive power plants, it plays with efficient cost management. It has posted good performances so far and post-expansion, the company is confident of maintaining the trends. Based on FY24 annualized earnings, the issue appears reasonably priced. Investors may lap it up for the medium to long term.
Objectives of Vraj Iron and Steel IPO
-
The company proposes to utilize the Net Proceeds in the following manner:
- • Funding for Capital Expenditure towards the "Expansion Project" at Bilaspur Plant.
- • Repayment or prepayment of borrowings from HDFC Bank obtained by the company for the capital expenditure towards the "Expansion Project" at Bilaspur Plant.
- • Capital expenditure towards the "Expansion Project" at Bilaspur Plant.
- • General Corporate Purposes.
Vraj Iron and Steel Limited IPO Financial Information
Latest Revenue
304.81
₹ Crore
Profit After Tax
44.58
₹ Crore
Net Worth
187.50
₹ Crore
Total Borrowing
49.30
₹ Crore
| Period Ended | Assets | Revenue From Operations | Profit After Tax | Net Worth | Total Borrowing | ||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2023 | 253.05 | 304.81 | 44.58 | 187.50 | 49.30 | ||||
| 31 Mar 2023 | 191.54 | 517.42 | 54.00 | 140.92 | 22.98 | ||||
| 31 Mar 2022 | 150.77 | 414.38 | 28.70 | 87.14 | 42.51 | ||||
| 31 Mar 2021 | 126.33 | 290.93 | 10.99 | 57.79 | 45.78 | ||||
| Amount in ₹ Crore | |||||||||
Vraj Iron and Steel Limited Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 23.78% |
| ROCE | 25.34% |
| Debt/Equity | 0.27 |
| RoNW | 23.78% |
| P/BV | 2.73 |
| PAT Margin (%) | 3.61 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 21.84 | 18.02 |
| P/E (x) | 9.48 | 11.49 |
Frequently Asked Questions
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Competitive Strengths
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Vraj Iron and Steel Limited IPO Timeline
| 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 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid 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 |