The issue is entirely a fresh issue of 0.83 crore . Iron and Steel IPO is a book built issue of Rs 171.00 crores.
Vraj Iron and Steel IPO bidding opened for subscription on June 26, 2024 and will close on June 28, 2024. The allotment for the Vraj Iron and Steel IPO is expected to be finalized on Monday, July 1, 2024. Iron and Steel IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, July 3, 2024.
Vraj Iron and Steel IPO price band is set at ₹195 to ₹207 per share. The minimum lot size for an application is 72 Shares. The minimum amount of investment required by retail investors is ₹14,904. The minimum lot size investment for is 14 lots (1,008 shares), amounting to ₹208,656, and for bNII, it is 68 lots (4,896 shares), amounting to ₹1,013,472.
Aryaman Financial Services Limited is the book running lead manager of the Vraj Iron and Steel IPO, while Services Pvt Ltd is the registrar for the issue.
Refer to Vraj Iron and Steel IPO RHPfor detailed information.
About Vraj Iron and Steel Limited
Incorporated in June 2004, 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. As of March 31, 2023, the total installed capacity of the manufacturing plants was 231,600 tons per year, including intermediate and final products.
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 TPA.
The company’s product portfolio comprises 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.
The Raipur Plant has achieved the Environmental Management System Certification under the new ISO 14001:2015 standard.
As of June 30, 2023, the company has a workforce of 533, including 298 permanent employees, 7 at the Registered Office, 200 at the Raipur Plant, 87 at the Bilaspur Plant, and 235 contract workers.
Objects of the Issue (Vraj Iron and Steel IPO Objectives)
The company proposes to utilise the Net Proceeds in the following manner.
- 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 Details
| IPO Date | June 26, 2024 to June 28, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹195 to ₹207 per share |
| Lot Size | 72 Shares |
| Total Issue Size | 8,260,870 shares(aggregating up to ₹171.00 Cr) |
| Fresh Issue | 8,260,870 shares (aggregating up to ₹171.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 24,721,750 |
| Share holding post issue | 32,982,620 |
Vraj Iron and Steel IPO Timeline (Tentative Schedule)
Vraj Iron and Steel IPO opens on June 26, 2024, and closes on June 28, 2024| IPO Open Date | Wednesday, June 26, 2024 |
| IPO Close Date | Friday, June 28, 2024 |
| Basis of Allotment | Monday, July 1, 2024 |
| Initiation of Refunds | Tuesday, July 2, 2024 |
| Credit of Shares to Demat | Tuesday, July 2, 2024 |
| Listing Date | Wednesday, July 3, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 28, 2024 |
Vraj Iron and Steel IPO Reservation
Vraj Iron and Steel IPO offers 8,260,868 shares. 1,652,174 (20.00%) to QIB, 1,239,130 (15.00%) to NII, 2,891,305 (35.00%) to RII and 2,478,259 (30.00%) to Anchor investors. 40,157 RIIs will receive minimum 72 shares and 409 (sNII) and 819 (bNII) will receive minimum 1,008 shares. (in case of oversubscription)| 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 IPO Lot Size
Investors can bid for a minimum of 72 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.| 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 IPO Promoter Holding
The promoters of the company are Gopal Sponge and Power Private Limited, V. A. Transport Private Limited and Vijay Anand Jhanwar.| Share Holding Pre Issue | 99.99% |
| Share Holding Post Issue |
Vraj Iron and Steel IPO Anchor Investors Details
Vraj Iron and Steel IPO raises Rs 51.30 crore from anchor investors. Vraj Iron and Steel IPO Anchor bid date is June 25, 2024. Vraj Iron and Steel IPO Anchor Investors list| Bid Date | June 25, 2024 |
| Shares Offered | 2,478,259 |
| Anchor Portion Size (In Cr.) | 51.30 |
| Anchor lock-in period end date for 50% shares (30 Days) | July 31, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | September 29, 2024 |
Vraj Iron and Steel Limited Financial Information (Restated Consolidated)
Vraj Iron and Steel Limited's revenue increased by 24.87% and profit after tax (PAT) r| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 253.05 | 191.54 | 150.77 | 126.33 |
| Revenue | 304.81 | 517.42 | 414.38 | 290.93 |
| Profit After Tax | 44.58 | 54.00 | 28.70 | 10.99 |
| Net Worth | 187.50 | 140.92 | 87.14 | 57.79 |
| Reserves and Surplus | 162.78 | 135.97 | 82.19 | 52.85 |
| Total Borrowing | 49.30 | 22.98 | 42.51 | 45.78 |
Key Performance Indicator
The market capitalization of Vraj Iron and Steel IPO is Rs 682.74 Cr.| KPI | Values |
|---|---|
| ROE | 23.78% |
| ROCE | 25.34% |
| Debt/Equity | 0.27 |
| RoNW | 23.78% |
| P/BV | 2.73 |
| PAT Margin (%) | 3.61 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 21.84 | 18.02 |
| P/E (x) | 9.48 | 11.49 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of December 31, 2023 that is available in RHP.
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Vraj Iron and Steel IPO Subscription Status (Bidding Detail)
The Vraj Iron and Steel IPO is subscribed 12.83 times on June 27, 2024 3:03:07 PM (Day 2). The public issue subscribed 16.13 times in the retail category, 0.72 times in the QIB category, and 21.27 times in the NII category.
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Category Subscription (times) Shares Offered Shares bid for QIB 0.72 16,52,174 11,89,368 NII 21.24 12,39,130 2,63,13,048 bNII (bids above ₹10L) 17.54 8,26,087 1,44,91,368 sNII (bids below ₹10L) 28.62 4,13,043 1,18,21,680 Retail 16.10 28,91,305 4,65,43,104 Total 12.80 57,82,609 7,40,45,520 -
Vraj Iron and Steel Limited Contact Details
Vraj Iron and Steel Limited
First Floor, Plot No 63 & 66, Ph No 113
Mother Teresa Ward No. 43
3, Jalvihar Colony, Raipur-492001
Phone: +91-771-4059002
Email: info@vrajtmt.in
Website: https://www.vrajtmt.in/ Read More – Diensten Tech Limited IPO of Rs 22.08 crores ( Diensten Tech IPO) Detail
