About Vraj Iron and Steel:
The company manufactures Sponge Iron, M.S. Billets, and TMT bars, operating two plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres. The Raipur plant includes a 5 MW captive power plant as of December 31, 2023. Following the Expansion Project, the total installed capacity is expected to increase from 231,600 TPA to 500,100 TPA, and captive power capacity from 5 MW to 20 MW.
About the Industry in which Vraj Iron and Steel operates:
The company operates in the Iron and Steel Industry. India, the world’s second-largest steel producer, had an installed capacity of 161.3 MT in FY23 and consumed 120 MT of finished steel. The industry’s growth is driven by abundant raw materials, cost-effective labor, and strong domestic demand in construction, real estate, and automobiles. Additionally, India’s vast coastline facilitates exports and imports, solidifying its position in the global steel industry.
| Important Information and Timelines of the IPO of Vraj Iron and Steel: | |
|---|---|
| Open Date | 26 June 2024 |
| Close Date | 28 June 2024 |
| Total Issue Size – Number of Shares | 8260870 |
| Minimum Bid Price | 195 |
| Maximum Bid Price | 207 |
| Lot Size | 72 |
| Basis of Allotment | 1 July 2024 |
| Initiation of Refunds and Credit of Shares to Demat | 2 July 2024 |
| Listing Date | 3 July 2024 |
| Listing Exchange(s) | NSE and BSE |
Minimum and Maximum Lot Sizes for the IPO of Vraj Iron and Steel:
| Category | Lots | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail – Minimum | 1 | 72 | 14904 |
| Retail – Maximum | 13 | 936 | 193752 |
| sHNI – Minimum | 14 | 1008 | 208656 |
| sHNI – Maximum | 67 | 4824 | 998568 |
| bHNI – Minimum | 68 | 4896 | 1013472 |
Objective of the IPO of Vraj Iron and Steel:
-
Expansion Project at Bilaspur Plant
a) Repayment or prepayment of borrowings from HDFC Bank.
b) Capital expenditure towards the Expansion Project at Bilaspur Plan. -
General Corporate Purposes
Financials of Vraj Iron and Steel:
| Particulars | For Period Ended December 31, 2023 | For Year Ended March 31, 2023 | For Year Ended March 31, 2022 | For Year Ended March 31, 2021 |
|---|---|---|---|---|
| Equity Share Capital | 247.22 | 49.44 | 49.44 | 49.44 |
| Net Worth | 1,874.99 | 1,409.15 | 871.39 | 577.94 |
| Revenue from Operations | 3,013.21 | 5,156.71 | 4,140.43 | 2,907.06 |
| Total Income | 3,048.08 | 5,174.21 | 4,143.84 | 2,909.32 |
| Restated Profit for the Period/Year Attributable to Equity Shareholders | 445.80 | 539.97 | 287.04 | 109.85 |
| Basic Earnings Per Share | 18.03 | 21.84 | 11.61 | 4.44 |
| Diluted Earnings Per Share | 18.03 | 21.84 | 11.61 | 4.44 |
| Return on Average Net Worth for Equity Shareholders | 36.20% | 47.35% | 39.61% | 20.80% |
| Net Asset Value Per Equity Share | 75.84 | 285.00 | 176.24 | 116.89 |
| Total Borrowings | 492.98 | 229.83 | 425.14 | 457.81 |
For more details on the IPO, refer to the DRHP here.
Did you know that you can now Pre-Apply for an IPO on Dhan? You can place your IPO Bid on Dhan and the order will be pushed to the Exchange as soon as the Bidding starts for Vraj Iron and Steel. You will receive a UPI mandate after 10:00 AM on 26 June 2024.
###1. How to apply for the IPO of Vraj Iron and Steel on Dhan?
You can apply for the IPO of Vraj Iron and Steel from either Dhan Mobile App or Web
On Dhan Mobile App you can find the IPO under the Money Section > IPO Tab
On Dhan Web you can find the IPO under Markets Tab > IPOs
###2. In case of successful allotment, when the IPO shares of Vraj Iron and Steel be visible on Dhan?
The CDSL will intimate you regarding the credit of shares into your Demat account by 2 July 2024. However, you will be able to see the shares of Vraj Iron and Steel on Dhan before the market starts on the listing date which is 3 July 2024.