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24 June 2024

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 Overview

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	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
Shareholding pre issue	24,721,750
Shareholding post issue	32,982,620

Vraj Iron and Steel IPO Timeline (Tentative Schedule)

Detail	Description
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

Vraj Iron and Steel IPO Lot Size

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

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

Vraj Iron and Steel IPO Promoter Holding

Share Holding Pre Issue	99.99%
Share Holding Post 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 Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	253.05	191.54	150.77	126.33
Revenue	304.81	517.42	414.38	290.93
Profit After Tax	44.58	54.00	28.70	10.99
Net Worth	187.50	140.92	87.14	57.79
Reserves and Surplus	162.78	135.97	82.19	52.85
Total Borrowing	49.30	22.98	42.51	45.78
Amount in ₹ Crore

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

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 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.

FAQs for Vraj Iron and Steel IPO

What is the Vraj Iron and Steel IPO?

Vraj Iron and Steel IPO is a main-board IPO. They are going to raise ₹171 Crores via IPO. The issue is priced at ₹195 to ₹207 per equity share. The IPO is to be listed on BSE & NSE.
When will the Vraj Iron and Steel IPO open?

The IPO is to open on June 26, 2024, for QIB, NII, and Retail Investors.
What is Vraj Iron and Steel IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Vraj Iron and Steel's IPO Size?

Vraj Iron and Steel's IPO size is ₹171 crores.
What is the Vraj Iron and Steel IPO Price Band?

Vraj Iron and Steel IPO Price Band is ₹195 to ₹207.
What is the Vraj Iron and Steel IPO Allotment Date?

Vraj Iron and Steel's IPO allotment date is July 1, 2024.
What is the Vraj Iron and Steel IPO Listing Date?

Vraj Iron and Steel's IPO listing date is July 3, 2024. The IPO is to be listed on BSE and NSE.