Vraj Iron and Steel is launching its IPO on June 26, with the price band set between ₹195 and ₹207 per share. The company aims to raise ₹171 crore by offering 0.83 crore new shares.
Purpose of the IPO
The money raised will be used for:
- Expansion Project: Funding capital expenses for expanding the Bilaspur Plant.
- Debt Repayment: Repaying or prepaying loans from HDFC Bank used for capital expenditure at the Bilaspur Plant.
- General Corporate Purposes: Other general expenses of the company.
Offer Details
- Book-Building Process: Up to 50% of the net issue is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.
- Minimum Investment: Retail investors need to buy at least one lot (72 shares), requiring a minimum investment of ₹14,904. For Small Non-Institutional Investors (SNIIs), the minimum investment is 14 lots (1008 shares), totalling ₹208,656.
Managers of the Issue
- Lead Manager: Aryaman Financial Services Limited.
- Registrar: Bigshare Services Pvt. Ltd.
About Vraj Iron and Steel
Vraj Iron and Steel manufactures sponge iron, M.S. billets, and TMT bars under the brand name Vraj. They sell these products directly and through brokers and dealers.
Manufacturing Facilities
- Location: Two plants in Raipur and Bilaspur, Chhattisgarh, spread over 52.93 acres.
- Current Capacity: 2,31,600 tonnes per annum (TPA) for intermediate and final products.
- Expansion Plans: The company is increasing its total manufacturing capacity from 2,31,600 TPA to 5,00,100 TPA and the captive power plant’s capacity from 5 MW to 20 MW. The expansion is expected to be completed in this fiscal year.
Energy Efficiency
The company currently operates a captive power plant with a 5 MW capacity. This helps lower energy costs and minimises reliance on the electricity grid, reducing the risk of production delays due to power outages.
Key Points
- IPO Price Range: ₹195-₹207 per share.
- Issue Size: ₹171 crore.
- Application Date: Opens on June 26.
- Minimum Retail Investment: ₹14,904.
- Expansion Goals: Increase production and power capacity to enhance operations.
The IPO aims to support Vraj Iron and Steel’s growth plans, making it an attractive opportunity for potential investors interested in the iron and steel sector.
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