Vraj Iron and Steel IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

₹1,710 Million

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About Vraj Iron and Steel Limited

Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars sold under the Vraj brand. They also produce by-products such as Dolochar, Pellet, and Pig Iron. Their products serve both industrial customers and end-users. The company currently operates through two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, covering an area of 52.93 acres. As of March 31, 2023, the aggregate installed capacity of the manufacturing plants was 2,31,600 tons per annum ("TPA"), comprising intermediate and final products.

The Raipur plant also includes a captive power plant with an aggregate installed capacity of 5 MW as of March 31, 2023. The company is in the process of increasing the capacities of its existing manufacturing plants and captive power plant, expected to raise the aggregate installed capacity from 2,31,600 TPA to 5,00,100 TPA and the captive power plant's aggregate installed capacity from 5 MW to 20 MW.

The company sells its products directly as well as through brokers/dealers. As part of its initiatives towards continual improvement, the company has obtained Environment Management System Certification under the new standard of ISO 14001:2015 for the Raipur Plant.

Industry Outlook

This fiscal year, the domestic steel market has shown strength, and according to the latest projections from the World Steel Association, demand is expected to remain strong, reaching ~136 million tonnes by 2024. This growth is fueled by increased infrastructure spending and government initiatives, especially in an election year.
Despite strong domestic demand, steel prices have dropped by ~6% due to pressure from high inventory levels at mills and distribution channels. Despite being a strong steel market, India began importing more steel starting in July 2023. This change happened because steel prices were initially higher than import prices, putting local producers at a competitive disadvantage.

Vraj Iron and Steel Limited IPO Details

Vraj Iron and Steel Limited IPO Dates

The exact dates are yet to be announced.

Vraj Iron and Steel Limited IPO Price Band

The exact prices are yet to be announced.

Vraj Iron and Steel Limited IPO Lot Size

The lot size are yet to be announced.

Vraj Iron and Steel Limited IPO Objectives

The company plans to allocate the net proceeds from the issue for the following purposes:

Repayment or prepayment of borrowings obtained from HDFC Bank for the capital expenditure towards the “Expansion Project” at Bilaspur plant.
Secure additional funding for capital expenditure towards the “Expansion Project” at Bilaspur plant.
General corporate purposes like enhancing brand visibility among existing and potential customers.

Peer Details

The following are the listed peers of Vraj Iron and Steel Limited:

Godawari Power and Ispat Limited
Sarda Energy and Minerals Limited
Shyam Metalics and Energy Limited

How To Check the Allotment Status of the Vraj Iron and Steel Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app.
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Vraj Iron and Steel Limited

Registered office: First Floor, Plot No 63 & 66, Ph No 113, Mother Teresa Ward No. 43, Jalvihar Colony, Raipur, Chhattisgarh, India, 492001.

Phone: +91-771-4059002

E-mail: info@vrajtmt.in

IPO Financials

Particulars	As at June 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operation (in ₹ million)	1,056.78	5,156.71	4,140.43	2,907.06
Profit After Tax (PAT) (in ₹ million)	163.34	539.97	287.04	109.85
Cash and Cash Equivalents (in ₹ million)	3.45	2.64	2.78	1.08
Net Worth (in ₹ million)	1,568.42	1,405.08	867.32	573.88
Net Debt (in ₹ million)	0.62	0.28	0.85	1.57
Return on Equity (%)	10.41%	38.43%	33.10%	19.14%
Return on Capital Employed (RoCE) (%)	13.62%	48.97%	37.69%	27.66%
EBITDA (in ₹ million)	237.47	813.14	496.61	291.00

Know before investing

Strengths

Vraj Iron and Steel Limited boasts an integrated and well-established manufacturing setup. This means that all stages of production are streamlined and interconnected, ensuring efficient operations from start to finish.
The manufacturing plants of Vraj Iron and Steel Limited are strategically located. Supported by robust architecture, these locations not only enhance cost efficiencies but also ensure a stable and reliable supply chain, critical for sustaining operations.
Vraj Iron and Steel Limited procures coal in significant quantities at favourable prices. This strategic approach helps in maintaining cost-effectiveness and stability in operations.
With a strong focus on value-added products, Vraj Iron and Steel Limited offers a diversified product mix. This means they don't just produce basic steel, but also value-added products that cater to specific market demands, expanding their market reach and profitability.

Risks

Vraj Iron and Steel Limited faces the challenge of raising significant additional funds to construct additional manufacturing facilities. There's uncertainty regarding whether these funds can be obtained on reasonable terms or at all.
Vraj Iron and Steel Limited is at risk of encountering delays and cost overruns during the expansion due to factors beyond its control, such as difficulties in securing contracts with equipment vendors and delays in obtaining necessary supplies.
Vraj Iron and Steel Limited may experience delays in obtaining approvals from government authorities, potentially hindering the progress of its expansion initiatives.