Vraj Iron and Steel IPO to Open on June 26th

20 Jun 2024 , 11:34 AM

Chhattisgarh-based Vraj Iron and Steel is set to open its initial public offering (IPO) worth Rs ₹171 crore on June 26. The company has set a price band of ₹195-207 per share for this offering.

This IPO, consisting solely of fresh issues, will be available for subscription from June 26 to June 28. The anchor book will open on June 25.

Important Dates:

• June 25: Anchor book opens
• June 26: IPO opens for subscription
• June 28: IPO closes for subscription
• July 1: Finalization of share allotment
• July 2: Credit of shares to demat accounts
• July 3: Commencement of trading on stock exchanges

Use of IPO Proceeds:

Vraj Iron and Steel plans to use ₹129.5 crore from the IPO proceeds to expand its Bilaspur plant. The remaining amount will be used for general corporate purposes.

Company Operations:

The company currently operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, with an installed capacity of 2,31,600 tons per annum (TPA). The Raipur plant also includes a captive power plant with a 5 MW capacity.

The planned expansion will increase the company’s total installed capacity to 5,00,100 TPA and boost the captive power plant’s capacity from 5 MW to 20 MW. The expanded sponge iron and power plant are expected to be operational by the fourth quarter of FY25, and the MS billets are expected to be operational by the first quarter of FY26.

Financial Performance:

For the year ending March FY23, Vraj Iron reported an 88.1% increase in net profit, reaching ₹54 crore. The company’s revenue from operations grew by 24.5% to ₹515.7 crore compared to the previous year. For the nine months ending December FY24, the company recorded a net profit of ₹44.58 crore on revenue of ₹301.3 crore.

Key Managers:

• Lead Manager: Aryaman Financial Services
• Registrar: Bigshare Services