Vraj Iron and Steel IPO: Company Overview, IPO GMP, Timelines & Price

June 24, 2024 IPO 4 min read
Vraj Iron and Steel IPO GMP

Vraj Iron and Steel IPO: A Comprehensive Overview

The Vraj Iron and Steel IPO is generating significant buzz in the market. As potential investors look at the Vraj Iron and Steel IPO GMP, many are keen to understand if the Vraj Iron and Steel IPO is good or bad, the Vraj Iron and Steel IPO price, and other details. This blog will provide an in-depth analysis of Vraj Iron and Steel Limited and its upcoming IPO, helping investors make informed decisions.

Vraj Iron and Steel Limited: Company Insight

Incorporated in June 2004, Vraj Iron and Steel Limited is a leading manufacturer of Sponge Iron, MS Billets, and TMT Bars under the Vraj brand. The company operates two state-of-the-art manufacturing plants in Raipur and Bilaspur, Chhattisgarh, spanning a total area of 52.93 acres. These facilities boast a combined installed capacity of 231,600 tons per year, including both intermediate and final products.

With a diverse product portfolio, Vraj Iron and Steel caters to a wide range of industrial customers and end-users. The company’s Raipur plant has earned the prestigious Environmental Management System Certification under the ISO 14001:2015 standard, underscoring its commitment to sustainable and environmentally responsible practices.

Industry Outlook

India, the world’s second-largest steel producer, is on a robust growth trajectory. The country’s crude steel output reached 125.32 MT in FY23, with finished steel production at 121.29 MT. This growth is expected to continue, driven by rising domestic demand and capacity expansion.

Vraj Iron and Steel IPO Grey Market Premium (GMP)

The Vraj Iron and Steel IPO GMP is a critical metric for investors. As of 24 June, the Vraj Iron and Steel IPO GMP is ₹40. This reflects the premium at which shares are trading in the grey market compared to the issue price.

Date IPO GMP
24 June ₹40
23 June ₹20
21 June ₹20
20 June ₹20
19 June ₹-

Pricing Details and Lot Size – Vraj Iron and Steel IPO

The Vraj Iron and Steel IPO price band is set between ₹195 and ₹207 per share, with a face value of ₹10 per share. The minimum lot size is 72 shares.

IPO Timelines at a Glance – Vraj Iron and Steel IPO

Event Date
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 5 PM on June 28, 2024

Book-running Lead Managers and Registrar – Vraj Iron and Steel IPO

The book-running lead managers for the Vraj Iron and Steel IPO are some of the most reputable names in the industry, ensuring a smooth and transparent IPO process.

Offer for Sale and IPO Size Breakdown – Vraj Iron and Steel IPO

The IPO size is ₹171 crores, consisting entirely of a fresh issue of 8,260,870 shares. The funds will be utilized for capital expenditure towards the expansion project at the Bilaspur Plant, repayment or prepayment of borrowings from HDFC Bank, and for general corporate purposes.

Utilisation of Fresh Issuance and Technological Advancements – Vraj Iron and Steel IPO

The primary objectives of the IPO are:

  1. Funding capital expenditure towards the expansion project at the Bilaspur Plant.
  2. Repayment or prepayment of borrowings from HDFC Bank for the expansion project.
  3. General corporate purposes, including strategic initiatives and debt reduction.

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) rose by 88.12% between the financial year ending March 31, 2023, and March 31, 2022.

Period Ended 31 Dec 2023 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets ₹253.05 Crore ₹191.54 Crore ₹150.77 Crore ₹126.33 Crore
Revenue ₹304.81 Crore ₹517.42 Crore ₹414.38 Crore ₹290.93 Crore
Profit After Tax ₹44.58 Crore ₹54.00 Crore ₹28.70 Crore ₹10.99 Crore
Net Worth ₹187.50 Crore ₹140.92 Crore ₹87.14 Crore ₹57.79 Crore
Reserves and Surplus ₹162.78 Crore ₹135.97 Crore ₹82.19 Crore ₹52.85 Crore
Total Borrowing ₹49.30 Crore ₹22.98 Crore ₹42.51 Crore ₹45.78 Crore

Amount in ₹ Crore

Conclusion

The Vraj Iron and Steel IPO presents a significant opportunity for investors looking to tap into the growing steel industry in India. With a solid financial performance, strategic expansion plans, and a strong market presence, Vraj Iron and Steel is well-positioned for future growth. The Vraj Iron and Steel IPO GMP suggests positive market sentiment, but investors should carefully consider all aspects before making a decision.

Ready to invest in Vraj Iron and Steel IPO? Open your Demat account with TradeSmart now and seize this opportunity!

Frequently Asked Questions – Vraj Iron and Steel IPO

What is the Vraj Iron and Steel IPO GMP today?

The Vraj Iron and Steel IPO GMP today is ₹40.

What is the price band for the Vraj Iron and Steel IPO?

The price band is set between ₹195 and ₹207 per share.

When will the Vraj Iron and Steel IPO open and close?

The IPO will open on June 26, 2024, and close on June 28, 2024.

What is the lot size for the Vraj Iron and Steel IPO?

The minimum lot size is 72 shares.

How will the proceeds from the Vraj Iron and Steel IPO be used?

The proceeds will be used for capital expenditure on the Bilaspur Plant expansion, repayment of HDFC Bank borrowings, and general corporate purposes.

Who are the lead managers for the Vraj Iron and Steel IPO?

The lead managers are top-tier firms with extensive experience in handling IPOs.

What is the company’s production capacity?

Vraj Iron and Steel has an installed capacity of 231,600 tons per year.

What certifications does Vraj Iron and Steel hold?

The Raipur plant is certified under the ISO 14001:2015 standard for environmental management.

 


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