Vraj Iron and Steel raised Rs 51.30 crore from anchor investors

26 Jun 2024 , 09:28 AM

On June 25, Vraj Iron and Steel announced that it raised over ₹51 Crore from anchor investors ahead of its initial public offering (IPO). The company’s IPO is set to open for public subscription on June 26.

According to a circular on the BSE website, the shares were allocated to prominent investors including Volrado Venture Partners Fund IV, Capri Global Housing Finance, Ashika Global Securities, Rajasthan Global Securities, Leading Light Fund VCC – The Triumph Fund, and Astorne Capital VCC-Arven. Vraj Iron and Steel issued 24,78,259 equity shares at ₹207 each, totaling ₹51.30 Crore.

The ₹171-Crore IPO is composed entirely of fresh equity shares with no offer-for-sale component. Shares will be available for public subscription from June 26 to June 28, within the price band of ₹195 to ₹207 per share.

The funds raised through the IPO will be utilized for expansion projects at the Bilaspur facility and for general corporate purposes. Based in Raipur, Vraj Iron and Steel specializes in manufacturing sponge iron, MS billets, and TMT bars. The company operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh.

With the planned expansion, the company aims to increase its total installed capacity from 2,31,600 tonnes per annum (TPA) to 500,100 TPA and expand the capacity of its captive power plants from 5 MW to 20 MW, according to the red herring prospectus (RHP).

Aryaman Financial Services is the sole book-running lead manager for the IPO, while Bigshare Services will act as the registrar. The equity shares of Vraj Iron and Steel are set to be listed on both the NSE and BSE.