Vraj Iron & Steel Ltd IPO

Vraj Iron & Steel Limited is engaged in manufacturing of Sponge Iron, M.S. Billets, and TMT bars. The Company currently operates through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. Its manufacturing plant at Raipur also includes a captive power plant with an aggregate installed capacity of 5 MW, as of March 31, 2023. After implementation of the Expansion Project, the company expects to increase its aggregate installed capacity (comprising of intermediate and final products) from 231,600 TPA to 500,100 TPA and captive power plants aggregate installed capacity from 5 MW to 20 MW.

Open Demat Account

50years

Vraj Iron & Steel Ltd IPO Details

Details

Total Shares OfferedOffer to PublicRetail Max (Shares)Pre Issue Promoters HoldingExchangeIssue size
82.61 LTBA28.91 L247.22 LBSE₹ 171 Cr
IPO Open DateClose DateLot SizeMin InvestmentIssue TypeListing Date
26 Jun, 2428 Jun, 2472 ₹ 14,040 Book Building03 Jul, 24

Vraj Iron & Steel Ltd IPO Dates

  • 26 Jun 2024

    Opening date

  • 28 Jun 2024

    Closing date

  • 01 Jul 2024

    Basis of
    Allotment

  • 02 Jul 2024

    Initiation of
    Refunds

  • 02 Jul 2024

    Credit of
    Shares

  • 03 Jul 2024

    Listing date

Details

SectorType
SectorSteel - Sponge Iron
Sub SectorNA
Issue TypeBook Building

Subscription Status

*Values are in Lakhs

Investor TypeSubscription TimesShares Offered*Shares Bid*
QIB69.6x4130435287463888
NII221.66x1239130274668192
Retail58.31x2891305168580440
Employee0x00
Total88.45x8260870730712520

Subscription Status

Investor Type

QIB

NII

Retail

Employee

Total

*Values are in Lakhs

Vraj Iron & Steel Ltd Financial Status

Income Statement

Balance Sheet

Particulars (in Rs. Crores)FY23FY22FY21
Revenue from operations75.6844.5221.86
EBITDA82.0851.6629.08
PAT51.3327.509.73
Total Assets109.4572.9144.43
Share Capital4.944.944.94
Total Borrowings78.8867.6844.13
Operating Activities (Net Cash)57.7334.6416.95
Investing Activities (Net Cash)11.2111.2111.21
Financing Activities (Net Cash)78.8867.6844.13
Net Cashflow8.953.973.40

Particulars (in Rs. Crores)

Revenue from operations

EBITDA

PAT

Total Assets

Share Capital

Total Borrowings

Operating Activities (Net Cash)

Investing Activities (Net Cash)

Financing Activities (Net Cash)

Net Cashflow

About Vraj Iron & Steel Ltd

Vraj Iron & Steel Limited was originally incorporated as Phil Ispat Private Limited as a private limited company under the provisions of the Companies Act, 1956, pursuant to a certificate of incorporation dated June 16, 2004 issued by the Registrar of Companies, Madhya Pradesh and Chhattisgarh. Pursuant to special resolution passed by the shareholders of the Company at the extraordinary general meeting held on September 29, 2023, the name of the Company was changed to Vraj Iron & Steel Private Limited and a fresh certificate of incorporation pursuant to change of name dated October 30, 2023 was issued by Registrar of Companies, Chhattisgarh. Thereafter, our Company was converted to a public limited company, pursuant to a special resolution passed by the shareholders of the Company at the extraordinary general meeting held on October 31, 2023 and the name of the Company was changed to Vraj Iron & Steel Limited and a fresh certificate of incorporation consequent upon conversion to a public limited company dated November 10, 2023 was issued to the Company by the Registrar of Companies, Chhattisgarh.

India is the second-largest steel producer in the world with an installed capacity of 161.3 MT in FY23 and the second-largest consumer of finished steel with a consumption of 120 MT in FY23. The crude steel production in India increased by 14.1% y-o-y to 69.7 MT in H1 FY24 (April 2023-September 2023) from 61.1 MT in H1 FY23 (April 2022-September 2022). The domestic finished steel consumption has increased at a CAGR of 5% to 119.9 MT in FY23 from 98.7 MT in FY19. After a steady increase in steel production, India witnessed a degrowth of 6.3% y-o-y in FY21 due to the outbreak of COVID-19. During H1 FY24, the consumption of finished steel reported a growth of 14.8% y-o-y on account of increased demand from the infrastructure and real estate sectors, mainly due to the protection year.

Peer Comparison:

  • Sarda Energy & Minerals Ltd
  • Godawari Power & Ispat Ltd
  • Shyam Metalics & Energy Ltd

Vraj Iron & Steel Ltd IPO Key Points

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.

Risk

  • Both of its existing manufacturing facilities are concentrated in a single region i.e. Raipur and Bilaspur, Chhattisgarh. Further its Expansion Project is also being implemented at Bilaspur, Chhattisgarh and hence the company faces geographical concentration related risks.
  • 100% of its revenue is from sale of the company steel products such as TMT Bars, MS Billets, Sponge Iron & others related items. Volatility in the demand and pricing in the iron and steel industry is common and is cyclical in nature. A decrease in steel prices may have a material adverse effect on its business, results of operations, prospects and financial condition.
  • The company has had experienced negative cash flows from operating, investing and financing in the recent past, and its may have negative cash flows in the future. The company net cash flow for the period / years are set forth in the table below.

Strategy

  • Expansion of manufacturing facilities.
  • Reduce Debt Levels and improve Debt to Equity Ratio.
  • Strengthen its customer base by growing existing customer business and acquiring new customers.
  • Focus on operational efficiencies to improve returns.
  • 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.

How To Apply for Vraj Iron & Steel Ltd Online?

Step 1:

Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.

Step 2:

From the list of open IPOs, select the IPO you want to invest.

Step 3:

Go through the IPO details like lot size, price band, about the company, etc.

Step 4:

Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.

Step 5:

Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.

Get your FAQs right

Vraj Iron & Steel Ltd's IPO offers shares for up to ₹ 0 L It begins on Jun 26, 2024 and ends on Jun 28, 2024.

The price of Vraj Iron & Steel Ltd IPO ranges between ₹195 to ₹207 per share.

The Vraj Iron & Steel Ltd IPO opens on Jun 26, 2024 and closes on Jun 28, 2024.

The allotment for the Vraj Iron & Steel Ltd IPO will be finalised on Jul 1, 2024. The shares will be listed on BSE and NSE on Jul 3, 2024.

The minimum lot size for Vraj Iron & Steel Ltd IPO is 72 shares, priced between ₹195 to ₹207 per share.

The GMP (Grey Market Premium) of Vraj Iron & Steel Ltd IPO fluctuates based on market demand and sentiment.

To check the allotment status of Vraj Iron & Steel Ltd IPO, visit the registrar's website, select the IPO, enter your PAN Card number, Application Number, or DP Client ID, and click 'search.'

The Vraj Iron & Steel Ltd IPO is getting listed on the BSE and NSE. Bidding opens on Jun 26, 2024, and closes on Jun 28, 2024. The allotment is finalised on Jul 1, 2024.

To apply for the Vraj Iron & Steel Ltd IPO, download the BlinkX app, complete KYC, select the IPO, enter bid details, and submit. Verify UPI payment for shares allotment.