Vraj Iron and Steel Limited IPO Opens On June 26. Check IPO Details Issue Date Price

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Vraj Iron and Steel Limited IPO Opens On June 26. Check IPO Details Issue Date Price

June 26, 2024
Vraj Iron and Steel Limited IPO Opens On June 26. Check IPO Details Issue Date Price

Vraj Iron and Steel Limited is coming out with an initial public offer to raise ? 171 crores from the market.

Below are the details of the Vraj Iron and Steel Limited IPO:

  • Issue opens – June 26 (Wednesday)
  • Issue closes – June 28 (Friday)
  • Issue size – Rs. 171 crores
  • Price band – Rs. 195 to 207 per equity share
  • Bid lot – 72 shares and in multiples thereof.

And here are some details of the company and further details on the IPO.

Company Details:

  • The company was incorporated in 2004 as ‘Phil Ispat Pvt. Ltd and the name was subsequently changed to ‘Vraj Iron & Steel Ltd’, in 2023. The company is engaged in the manufacturing of Sponge Iron, M.S. Billets, and TMT bars under the brand VRAJ.
  • The company’s product offerings such as Sponge Iron, TMT Bar, MS Billets and by-products Dolochar, Pellet and Pig Iron cater to industrial customers as well as end-users.
  • The company operates 2 integrated manufacturing plants located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. The company’s current aggregate installed capacity of intermediate and final products stands at 2,31,600 TPA and the company is in the process of increasing the said capacity to 5,00,100 TPA. The proposed expansion of Sponge Iron plant is expected to be operational in Q4FY25 while MS Billets is expected to become operational in Q1FY26.
  • Further, the company also has a captive power plant with a capacity of 5 MW which the company plans to increase to 20 MW by Q4FY25.
  • The company’s integrated manufacturing plants are strategically located at Bilaspur and Raipur within the mineral rich State of Chhattisgarh and in proximity to the mineral belt in eastern India. The plant’s location close to raw material suppliers and also the end users, aids the company to lower the transportation costs and logistics management, thereby by improving operating margins.
  • The company’s main products are Sponge Iron, TMT Bar and MS Billets which accounted for 96.88% 97.01%, 95.31% and 96.40% of total revenue from operations for period ended December 31, 2023, Fiscals 2023, 2022 and 2021 respectively. The diversified product range has resulted in a diversified product mix, which has reduced the dependency on a particular product and de-risked the revenue streams.
  • The company’s total Income grew at a CAGR of 33.4%, EBITDA grew at a CAGR of 67.2% and Profit After Tax grew at a CAGR of 121.7% during Fiscal 2021 and Fiscal 2023. For 9 months ending December 31,2023, the company reported total income of ? 304.88 Cr, EBITDA of ? 65.10 Cr, EBITDA margins of 21.61% and PAT of ? 44.58 Cr. The company’s PAT margins improved from 3.78% in Fiscal 2021 to 38.32% in Fiscal 2023.

Issue Size : Rs.171 Cr

Issue break-up :

QIB – 50 % of the offer – Rs. 85.50 Cr.
NIB – 15 % of the offer – Rs. 25.65 Cr.
RET – 35 % of the offer – Rs. 59.85 Cr.

Listing : BSE & NSE

Registrar : Bigshare Services Pvt. Ltd

UPI : All Retail & NII Bidders (bids up to Rs. 5,00,000) Applications through brokers are compulsorily in UPI Mode

Note:

Application made using third party UPI or ASBA Bank A/c are liable to be rejected.

The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs. 5,00,000) shall expire at 5:00 PM on the closing day of the FPO i.e., Friday, June 28, 2024.

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