Introduction

Vraj Iron and Steel Limited is set to launch an IPO, aiming to raise ₹171.00 crores through a fresh issue of 0.83 crore shares. The IPO will open for subscription from June 26, 2024, to June 28, 2024, with a price band of ₹195 to ₹207 per share. Aryaman Financial Services Limited is the lead manager for the IPO, and Bigshare Services Pvt Ltd is the registrar.

Company Overview

Incorporated in June 2004, Vraj Iron and Steel Limited specializes in manufacturing Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company operates two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, with a total installed capacity of 231,600 tons per year. As of March 31, 2023, the company's workforce comprises 533 employees, including 298 permanent staff.
 

🗓️ IPO Schedule:

• Opens: June 26, 2024
• Closes: June 28, 2024
• Basis of Allotment: July 1, 2024
• Listing Date: July 3, 2024
• Price Band: ₹195 to ₹207 per share
• Lot Size: 72 Shares

📊 Issue Breakdown:

• Total Issue Size: 8,260,870 shares (₹171.00 Cr)
• Fresh Issue: 8,260,870 shares (₹171.00 Cr)
• Offer for Sale: N/A

📈 Promoter Holding:

• Pre Issue: 24,721,750 shares
• Post Issue: 32,982,620 shares

Key Features

• Manufacturing Facilities: Raipur and Bilaspur, Chhattisgarh
• Production Capacity: 57,600 TPA of MS Billets, 54,000 TPA of TMT Bars
• Environmental Certification: ISO 14001:2015 for Raipur Plant
   

💹 Financial Performance:

• Revenue Growth: 24.87% increase from FY 2022 to FY 2023
• Profit After Tax (PAT): 88.12% increase from FY 2022 to FY 2023

📈 Key Performance Indicators:

• Market Capitalization: ₹682.74 Cr
• ROE: 23.78%
• ROCE: 25.34%
• Debt/Equity: 0.27
• RoNW: 23.78%
• P/BV: 2.73
• PAT Margin: 3.61%

💼 Objects of the Issue:

• Capital Expenditure: Funding the expansion project at the Bilaspur Plant
• Repayment of Borrowings: Prepayment of borrowings from HDFC Bank for the Bilaspur Plant expansion
• General Corporate Purposes

Financial Information (Restated Consolidated)

This IPO provides an opportunity to invest in a growing company with a robust financial performance and strategic expansion plans. The capital raised will be used for enhancing production capacities and reducing debt, which is expected to drive future growth and profitability.