Vraj Iron and Steel IPO will open for subscription from 26 June 2024. The company aims for an issue size of ₹171 Cr through this IPO.
Company Overview
| Full name | Vraj Iron and Steel Limited |
| Sector | Iron & Steel |
| Industry | Steel & Iron Products |
| Company Website | https://www.vrajtmt.in/ |
About Company
Vraj Iron and Steel is engaged in manufacturing Sponge Iron, M.S. Billets, and TMT Bars under the brand Vraj. The company currently operates two manufacturing facilities spread across 52.93 acres at Raipur and Bilaspur in Chhattisgarh. As of 31 December 2023, Vraj Iron and Steel is ramping up the production capacity of its existing production facilities as well as its captive power plant, and the total production capacity is expected to increase from 2,31,600 tons per annum (TPA) to 5,00,100 TPA and the total capacity of its captive power plant is expected to increase from 5 Megawatt (MW) to 20 MW.
As of 31 December 2023, the company has 531 employees, of which 296 are permanent employees including 3 directors, 9 are head office employees, 193 employees at Raipur plant, 91 employees at Bilaspur plant, and 235 contract employees.
The Objectives 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 Timetable
| IPO Opening date | 26 June 2024 |
| IPO Closing | 28 June 2024 |
| Basis of Allotment | 01 July 2024 |
| Initiation Refund | 02 July 2024 |
| Credit to Demat Account | 02 July 2024 |
| Listing Date | 03 July 2024 |
Vraj Iron and Steel IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹171 Cr – 8,260,870 shares |
| Fresh Issue | ₹171 Cr – 8,260,870 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹195 to ₹207 per share |
| Lot size | 72 Shares |
| Shareholding pre-issue | 24,721,750 |
| Shareholding post-issue | 32,982,620 |
| Listing Exchange | BSE & NSE |
Vraj Iron and Steel IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 72 | ₹14,904 |
| Retail (Max) | 13 | 936 | ₹193,752 |
| S-HNI (Min) | 14 | 1,008 | ₹208,656 |
| S-HNI (Max) | 67 | 4,824 | ₹998,568 |
| B-HNI (Min) | 68 | 4,896 | ₹1,013,472 |
Vraj Iron and Steel Offer Documents
Vraj Iron and Steel IPO Reservation Details
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 2,478,259 (30.00%) | NA |
| QIB Shares Offered | 1,652,174 (20.00%) | NA |
| NII (HNI) Shares Offered | 1,239,130 (15.00%) | |
| bNII > ₹10L | 826,087 (10.00%) | 819 |
| sNII < ₹10L | 413,043 (5.00%) | 409 |
| Retail Shares Offered | 2,891,305 (35.00%) | 40,157 |
| Total Shares Offered | 8,260,868 (100%) |
Vraj Iron and Steel Financial Performance
| FY 2021 | FY 2022 | FY 2023 | 9M FY 2024 | |
| Revenue | 290.71 | 414.04 | 515.67 | 301.32 |
| Expenses | 276.53 | 377.20 | 448.42 | 249.09 |
| Net income | 10.99 | 28.70 | 54.00 | 44.58 |
| Margin (%) | 3.78 | 6.93 | 10.47 | 14.79 |
Vraj Iron and Steel Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 (Pre Issue) | FY 2024 (Post-Issue)* | |
| EPS | 4.45 | 11.62 | 21.86 | 18.01 |
| PE Ratio | – | – | 8.92 – 9.47 | 10.83 – 11.49 |
| FY 2021 | FY 2022 | FY 2023 | |
| RONW (%) | 19.01 | 32.94 | 38.32 |
| NAV | 23.40 | 35.28 | 57.05 |
| EBITDA (%) | 10.01 | 11.99 | 15.77 |
| ROCE (%) | 20.68 | 32.14 | 44.98 |
| Debt/Equity | 0.82 | 0.51 | 0.17 |
Company Promoters
- Gopal Sponge and Power Private Limited
- V. A. Transport Private Limited
- Vijay Anand Jhanwar.
Promoter Holding
| Pre Issue Share Holding | 99.99% |
| Post Issue Share Holding |
Vraj Iron and Steel Offer GMP Update
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 2 July 2024 | 70 | – | 3,900 |
| 1 July 2024 | 75 | – | 4.200 |
| 29 June 2024 | 75 | – | 4,200 |
| 28 June 2024 | 80 | – | 4,500 |
| 27 June 2024 | 70 | – | 3,800 |
| 26 June 2024 | 60 | – | 3,200 |
| 25 June 2024 | 50 | – | 2,600 |
| 24 June 2024 | 37 | – | 2,000 |
| 22 June 2024 | 20 | – | 1,500 |
Vraj Iron and Steel IPO Subscription Update
| Category | Subscription (times) |
|---|---|
| QIB | 173.99 |
| NII | 221.66 |
| bNII (bids above ₹10L) | 217.50 |
| sNII (bids below ₹10L) | 229.99 |
| Retail | 58.31 |
| Total | 126.36 |
Vraj Iron and Steel IPO Allotment Status
Vraj Iron and Steel IPO allotment status is now available on Bigshare Services’ website. Click on this link to get allotment status.
Vraj Iron and Steel IPO Listing Details
| Listing Date | 03 July 2024 |
| BSE Scrip Code | 544204 |
| NSE Symbol | VRAJ |
| ISIN | INE0S2V01010 |
| Final Issue Price | ₹207 per share |
Vraj Iron and Steel IPO Listing Day Update
| Listing Exchange | BSE | NSE |
| Final Issue Price | ₹207.00 | ₹207.00 |
| Open | ₹240.00 | ₹240.00 |
| Low | ₹240.00 | ₹240.00 |
| High | ₹251.95 | ₹252.00 |
| Last Trade | ₹251.95 | ₹252.00 |
Vraj Iron and Steel IPO Lead Manager(s)
ARYAMAN FINANCIAL SERVICES LIMITED
60, Khatau Building, Ground Floor,
Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001
Phone: +91 22 – 6216 6999
Email: ipo@afsl.co.in
Website: www.afsl.co.in
Vraj Iron and Steel Registrar
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Vraj Iron and Steel Contact Details
VRAJ IRON AND STEEL LIMITED
First Floor, Plot No 63 & 66, Ph No 113, Mother
Teresa Ward No. 43, Jalvihar Colony, Raipur,
Chhattisgarh, India, 492001
Phone: +91-771-4059002
Email: info@vrajtmt.in
Website: www.vrajtmt.in
Vraj Iron and Steel IPO FAQs
How many shares in Vraj Iron IPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%.
How to apply for Vraj Iron Public Offer?
The best way to apply for Vraj Iron public offer is through Internet banking ASBA (know all about ASBA here). You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Vraj Iron Offer GMP today?
Vraj Iron IPO GMP today is ₹ 70 per share.
What is Vraj Iron kostak rate today?
Vraj Iron kostak rate today is ₹ NA per application.
What is Vraj Iron Subject to Sauda rate today?
Vraj Iron Subject to Sauda rate today is ₹ 3,900 per application.
Final thoughts
Vraj Iron and Steel IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. Study the company well and subscribe if you feel good about it. I hope this post will give you enough details to research the company fundamentally. learn well and make wise decisions.
Happy Investing
