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.
As of June 30, 2023, the company has a workforce of 533, including 298 permanent employees, 7 at the Registered Office, 200 at the Raipur Plant, 87 at the Bilaspur Plant, and 235 contract workers.
Vraj Iron and Steel IPO – Details
| IPO Opening Date | 24 June 2024 |
| IPO Closing Date | 28 June 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Total Issue Size: 82,60,870 Shares Worth ₹171.00 Crore Fresh Issue: 82,60,870 Shares Worth ₹171.00 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹195 – ₹207 per share |
| Market Lot | 72 Shares |
| Min Order | 72 Shares ( 1 Lot ) |
| Listing At | BSE, NSE |
| Register | Bigshare Services Pvt Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Vraj Iron and Steel IPO – Date Schedule
| IPO Open Date | 26 June 2024 |
| IPO Close Date | 28 June 2024 |
| Basis of Allotment Date | 01 July 2024 |
| Initiation of Refund | 02 July 2024 |
| Credit of Shares to Demat Account | 02 July 2024 |
| IPO Listing Date | 03 July 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 28, 2024 |
Vraj Iron and Steel IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 72 | ₹14,904 |
| Retail (Max) | 13 | 936 | ₹1,93,752 |
| S-HNI (Min) | 14 | 1,008 | ₹2,08,656 |
| S-HNI (Max) | 67 | 4,824 | ₹9,98,568 |
| B-HNI (Min) | 68 | 4,896 | ₹10,13,472 |
Competitive Strengths
- Integrated and well-established manufacturing setup.
- Manufacturing plants are strategically located, 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 strong focus on value added products.
- Experienced promoter, board and management team.
- Consistent track record of growth and financial performance.
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2021 | 290.93 | 276.53 | 10.99 | 45.78 |
| 31 March 2022 | 414.38 | 377.20 | 28.70 | 42.51 |
| 31 March 2023 | 517.42 | 448.43 | 53.10 | 22.98 |
| 31 December 2023 | 304.81 | 249.09 | 44.58 | 49.30 |
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 |
Object of the Issue
- 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; and
- Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
- General Corporate Purposes.
Vraj Iron and Steel IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 1 | Sarda Energy & Minerals Ltd. | 15.3 |
| 2 | 5 | Godawari Power & Ispat Ltd. | 16.4 |
| 3 | 10 | Shyam Metalics And Energy Limited | 18.7 |
Vraj Iron and Steel IPO Promoter Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding | 74.95% |
Vraj Iron and Steel IPO Prospectus
Company Contact Information
| Vraj Iron and Steel Limited First Floor, Plot No 63 & 66, Ph No 113 Mother Teresa Ward No. 43 3, Jalvihar Colony, Raipur-492001 Phone: +91-771-4059002 Email: info@vrajtmt.in Website: https://www.vrajtmt.in/ |
Vraj Iron and Steel IPO Registrar
| Bigshare Services Pvt Ltd Phone: +91-22-6263 8200 Email: ipo@bigshareonline.com Website: https://ipo.bigshareonline.com/ipo_status.html |
Vraj Iron and Steel IPO Lead Manager(s)
| 1. Aryaman Financial Services Limited |
Vraj Iron and Steel IPO FAQs
| What is Vraj Iron and Steel IPO? Vraj Iron and Steel IPO is a main-board IPO. The issue is priced at ₹195 to ₹207 per equity share. The IPO is to be listed on BSE & NSE. |
| When Vraj Iron and Steel IPO will open? The IPO is to open on 26 June 2024 for QIB, NII, and Retail Investors. |
| What is Vraj Iron and Steel IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Vraj Iron and Steel IPO? You can apply Vraj Iron and Steel IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Vraj Iron and Steel IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Vraj Iron and Steel”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Vraj Iron and Steel IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Vraj Iron and Steel“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Vraj Iron and Steel IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Vraj Iron and Steel”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Vraj Iron and Steel IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Vraj Iron and Steel”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Vraj Iron and Steel IPO Size? Vraj Iron and Steel IPO size is ₹171.00 Crore. |
| What is Vraj Iron and Steel IPO Price Band? Vraj Iron and Steel IPO Price Band is ₹195 to ₹207. |
| What is Vraj Iron and Steel IPO Minimum and Maximum Lot Size for retail? The minimum bid is 72 Shares with ₹14,904 amount while the maximum bid is 936 Shares with ₹1,93,752 |
| What is the Vraj Iron and Steel IPO Allotment Date? Vraj Iron and Steel IPO allotment date is 01 July 2024. |
| What is the Vraj Iron and Steel IPO Listing Date? Vraj Iron and Steel IPO listing date is 03 July 2024. The IPO is to list on BSE and NSE. |
