Vraj Iron and Steel IPO Details Today : Vraj Iron and Steel IPO Details Today is Open on 26 June 2024 and Close on 28 June 2024. Vraj Iron and Steel IPO to Raise 8,260,870 shares (Approx ₹171.00 Cr) via IPO. The Fresh issue of 8,260,870 shares (Approx ₹171.00 Cr).
Our Company is engaged in manufacturing Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. We currently operate through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. As of March 31, 2023, the aggregate installed capacity of our manufacturing plants was 2,31,600 tons per annum (“TPA”) (comprising Intermediate and final products).
Our manufacturing plant at Raipur also includes a captive power plant with an aggregate installed capacity of 5 MW, as of March 31, 2023. We are in the process of increasing the capacities of our existing manufacturing plants and captive power plant, which is expected to increase our aggregate installed capacity (comprising of intermediate and final products) from 2,31,600 TPA to 5,00,100TPA and captive power plants aggregate installed capacity from 5 MW to 20 MW. These proposed expansions are expected to become operational in FY 2024-25. Details for the installed capacities & proposed expansion are as below.
Our two manufacturing plants are strategically located at Bilaspur and Raipur within the mineral rich State of Chhattisgarhand in close proximity to the mineral belt in eastern India. Our presence in these locations allows us to have easy access to raw materials and end users both which helps us overcome significant entry barriers in comparison with our competitors. Webelievethis lowers our transportation costs and provides us with logistics management and cost benefits,thereby improving our operating margins.
Our Company has entered into agreementsfor purchase of iron ore lump with NMDC Limited and a fuel-supply agreementsfor purchase of coal with SouthEastern Coalfields Limited enabling smooth flow in production plants. The main advantages of buying raw materials from our existing suppliers are their enormous capacity, which allows them to meet our requirements of raw materials under any circumstance, their reduced lead times and seamless material flow, on-time deliveries and direct line of communication.
These advantages translate into higher efficiency for us and lower prices of raw materials, as can be observed in the table below, resulting in better operating margins.
Vraj Iron and Steel IPO Date & Price Band Details
| IPO Open Date | 26 June 2024 |
|---|---|
| IPO Close Date | 28 June 2024 |
| IPO Size | 8,260,870 shares (Approx ₹171.00 Cr) |
| Fresh Issue | 8,260,870 shares (Approx ₹171.00 Cr) |
| Lot Size | 72 Shares |
| IPO Face Value | ₹10 Per Equity Share" |
| IPO Price Band | ₹195 to ₹207 Per Every Share |
| IPO Listing On | BSE & NSE |
| IPO Retail Quota | 35% |
| IPO QIB Quota | 50% |
| IPO NII Quota | 15% |
| DRHP Draft | Click Here |
| Anchor Investor | Click Here |
Vraj Iron and Steel IPO Market Lot Details
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 72 | ₹14,904 |
| Retail Maximum | 13 | 936 | ₹193,752 |
| S-HNI Minimum | 14 | 1,008 | ₹208,656 |
| S-HNI Maximum | 67 | 4,824 | ₹998,568 |
| B-HNI Minimum | 68 | 4,896 | ₹1,013,472 |
Object of the Offer
- Funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plant:
- Repayment or prepayment of borrowings from HDFC Bank obtained by our Company for the capital expenditure towards the “Expansion Project” at Bilaspur Plant.
- Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
- General Corporate Purposes.
- In addition to the aforementioned objects, our Company intends to strengthen its capital base and expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, including among other things, enhancing the visibility of our brand and our Company among our existing and potential customers.
- The Main Objects clause as set out in the Memorandum of Association enables our Company to undertake its existing activities and the activities for which funds are being raised by the Company through the Present Issue. Further, we confirm that the activities that we have been conducting until now are by the objects clause of our Memorandum of Association.
Vraj Iron and Steel IPO Allotment & Listings (Details)
| IPO Open Date | 26 June 2024 |
|---|---|
| IPO Close Date | 28 June 2024 |
| Basis of Allotment | 1 July 2024 |
| Refunds | 2 July 2024 |
| Credit to Demat Account | 2 July 2024 |
| IPO Listing Date | 3 July 2024 |
Vraj Iron and Steel Financial Reports
| ₹ in Crores | |||
|---|---|---|---|
| Year | Revenue | Networth | PAT |
| 30 June 2024 | ₹106.72 | ₹156.84 | ₹16.33 |
| 2023 | ₹517.42 | ₹140.51 | ₹54.00 |
| 2022 | ₹414.38 | ₹86.73 | ₹28.70 |
| 2021 | ₹290.93 | ₹57.39 | ₹10.99 |
Our Company Promoters
- Vijay Anand Jhanwar
Qualitative Factors
- Integrated and well-established manufacturing setup.
- Manufacturing plants are strategically located, and supported by robust architecture, leading to cost efficiencies and a stable supply chain.
- Quantity and Average price of Coal procured by the company.
- Diversified product mix with a strong focus on value-added products.
- Experienced Promoter, Board, and management team.
- Consistent track record of growth and financial performance.
Vraj Iron and Steel Comparison Listed Industry Peers Group
| Company Name | Face Value | EPS | Ro NW (%) | NAV Per | Revenue (₹ in Lakhs) |
|---|---|---|---|---|---|
| Vraj Iron & Steel Limited | 10.00 | 21.84 | 38.15% | 286.27 | 5,156.71 |
| Peer Group | |||||
| Godawari Power and Ispat Limited | 5.00 | 61.16 | 20.31% | 277.09 | 5,156.71 |
| Sarda Energy and Minerals Limited | 1.00 | 169.94 | 17.71% | 967.72 | 42,119.00 |
| Shyam Metalics and Energy Limited | 10.00 | 33.26 | 11.85% | 280.79 | 5,156.71 |
Comparison of accounting ratios with listed industry peers
- Vraj Iron & Steel Limited
- Godawari Power and Ispat Limited
- Sarda Energy and Minerals Limited
- Shyam Metalics and Energy Limited
Vraj Iron and Steel Company Contact Details
Vraj Iron and Steel Limited
First Floor, Plot No 63& 66,
Ph No 113, Mother Teresa Ward No. 43,
Jalvihar Colony, Raipur,
Chhattisgarh, India, 492001
Tel No: +91-771-4059002
Email: info@vrajtmt.in
Investor Grievance ID: info@vrajtmt.in
Website: www.vrajtmt.in
Vraj Iron and Steel IPO Registrar
Bigshare Services Private Limited
Office No. S6-2, 6thfloor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri East, Mumbai-400093
Telephone: +91 22-6263 8200
Email: ipo@bigshareonline.com
Investor grievance email: investor@bigshareonline.com
Contact Person: Babu Rapheal C.
Website:www.bigshareonline.com
