Vraj Iron and Steel’s IPO Set to Launch On June 26, 2024

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. 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 ΤΡΑ. The product portfolio of the company includes 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.

About the Issue

Vraj Iron and Steel IPO is valued at Rs. 171.00 crores, It is a book-built issue consisting entirely of a fresh issue of 0.83 crore shares. This IPO is scheduled to open for subscription on June 26, 2024, closing on June 28, 2024, with allotment expected on Monday, July 1, 2024. The tentative listing date for BSE and NSE is set for Wednesday, July 3, 2024. The price band for the IPO ranges from Rs. 195 to Rs. 207 per share, and the minimum lot size for an application is 72 shares.

Objectives of the Issue

The company plans to use the Net Proceeds as follows: funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plant, including repayment or prepayment of borrowings from HDFC Bank obtained for this purpose and further capital expenditure for the project; and General Corporate Purposes, supporting overall operations and growth initiatives.

Financial Performance

Conclusion

The Vraj Iron and Steel IPO, valued at Rs. 171.00 crores, is a fresh issue of 0.83 crore shares with a price band of Rs. 195 to Rs. 207 per share. The company intends to utilize the proceeds for funding capital expenditure towards the Expansion Project at Bilaspur Plant and for general corporate purposes. Investors should consider the potential risks involved in the company’s expansion plans before investing.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.