Vraj Iron & Steel Ltd IPO
Open Demat Account
Vraj Iron & Steel Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 82.61 L | TBA | ₹ 28.91 L | ₹ 247.22 L | BSE | ₹ 171 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 26 Jun, 24 | 28 Jun, 24 | 72 | ₹ 14,040 | Book Building | 03 Jul, 24 |
Vraj Iron & Steel Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Steel - Sponge Iron |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 69.6x | 4130435 | 287463888 |
| NII | 221.66x | 1239130 | 274668192 |
| Retail | 58.31x | 2891305 | 168580440 |
| Employee | 0x | 0 | 0 |
| Total | 88.45x | 8260870 | 730712520 |
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) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 419.86 | 515.67 | 414.04 |
| EBITDA | 84.30 | 81.88 | 51.66 |
| PAT | 54.12 | 51.11 | 27.50 |
| Total Assets | 110.34 | 109.59 | 72.91 |
| Share Capital | 24.72 | 4.94 | 4.94 |
| Total Borrowings | 78.50 | 79.02 | 67.68 |
| Operating Activities (Net Cash) | 59.96 | 57.55 | 34.64 |
| Investing Activities (Net Cash) | -52.51 | 11.81 | 11.21 |
| Financing Activities (Net Cash) | 78.50 | 79.02 | 67.68 |
| Net Cashflow | 40.15 | 8.95 | 3.97 |
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.
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.
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 IPO 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.
