Vraj Iron and Steel IPO Review

 
Vraj Iron and Steel IPO Review

IPO Open Date: June 26, 2024

IPO Close Date: June 28, 2024

IPO Price: ₹195 to ₹207 per share

Lot Size: 72 Shares

Listing: July 3, 2024

Vraj Iron and Steel is scheduled to hit the market on June 26, 2024 and close on June 28, 2024. Vraj Iron and Steel plans to raise around ₹171.00 Cr through an IPO with a sale of up to 8,260,870 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Incorporated in June 2004, Vraj Iron and Steel is a manufacturing company based in Chhattisgarh, operating two plants in Raipur and Bilaspur spread across 52.93 acres. The company specializes in producing Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj, with a total installed capacity of 231,600 tons per year for intermediate and final products. Currently, Vraj Iron and Steel Limited has a production capacity of 57,600 TPA of MS Billets, utilized by its rolling mills to manufacture TMT Bars at a capacity of 54,000 TPA. Its diverse product portfolio includes Sponge Irons, TMT Bars, MS Billets, as well as by-products like Dolochar, Pellets, and Pig Iron, serving both industrial customers and end-users. The Raipur Plant has been certified under the ISO 14001:2015 standard for Environmental Management System.

As of June 30, 2023, Vraj Iron and Steel Limited employs a workforce of 533 individuals, comprising 298 permanent employees and 235 contract workers. Among them, 7 work at the Registered Office, 200 at the Raipur Plant, and 87 at the Bilaspur Plant.

Vraj Iron and Steel


Vraj Iron and Steel IPO Details

Vraj Iron and Steel IPO opens on June 26, 2024, and closes on June 28, 2024. The Listing date for Vraj Iron and Steel IPO is on July 03, 2024. The price band for IPO is ₹195 to ₹207 per share and lot size of 72 Shares.

IPO DateJune 26, 2024 to June 28, 2024
Listing DateJuly 03, 2024
Price₹195 to ₹207 per share
Lot Size72 Shares
Issue Size₹171.00 Cr
Face Value₹10 per share

Vraj Iron and Steel IPO Tentative Timetable

Vraj Iron and Steel opening date is June 26, 2024 and close date is June 28, 2024. The IPO allotment date is July 01, 2024. The refund initiation of IPO is on July 02, 2024. The credit of shares in demat account is on July 02, 2024. The listing date is on July 03, 2024.

EventDate
IPO OpeningJune 26, 2024
IPO ClosingJune 28, 2024
IPO Allotment DateJuly 01, 2024
Refund InitiationJuly 02, 2024
Shares Credit to DematJuly 02, 2024
Lisiting DateJuly 03, 2024

Vraj Iron and Steel IPO Lot Size

Lot Size of this IPO is 72 shares. A retail-individual investor can apply for up to 13 lots (936 shares or ₹193,609).

CategoryLotsSharesAmount
Retail(Minimum)172₹14,904
Retail(Maximum)13936₹193,752
S-HNI (Minimum)141,008₹208,656
B-HNI (Minimum)684,896₹1,013,472

Vraj Iron and Steel IPO Promoter Holding

Pre Issue Share Holding99.99%
Post Issue Share Holding

Vraj Iron and Steel IPO Review

VISL has shown robust financial performance over the past few years. For FY21, the company reported a total income of Rs. 290.93 crore and a net profit of Rs. 10.99 crore. In FY22, revenue increased to Rs. 414.38 crore with a net profit of Rs. 28.70 crore. For FY23, revenue further grew to Rs. 517.42 crore with a net profit of Rs. 54.00 crore. For the nine months ending December 31, 2023, VISL achieved a net profit of Rs. 44.58 crore on a total income of Rs. 304.81 crore. For the last three fiscals, VISL reported an average EPS of Rs. 15.53 and an average RoNW of 33.31%. The issue is priced at a P/BV of 2.73 based on its NAV of Rs. 75.84 as of December 31, 2023, and at a P/BV of 1.90 based on its post-IPO NAV of Rs. 108.69 per share. If we attribute annualized FY24 earnings to its post-IPO fully diluted paid-up equity capital, the asking price is at a P/E of 11.49. Based on FY23 earnings, the P/E stands at 12.65, indicating the issue is reasonably priced.

VISL’s IPO aims to raise Rs. 171.00 crore by issuing approximately 8,260,870 equity shares at a price band of Rs. 195 – Rs. 207 per share. The proceeds will be used for repaying/prepaying certain borrowings (Rs. 70.00 crore), capex for expanding the Bilaspur plant (Rs. 59.50 crore), and general corporate purposes. Post-IPO, the company’s paid-up equity capital will increase from Rs. 24.72 crore to Rs. 32.98 crore, targeting a market capitalization of Rs. 682.74 crore at the upper price band. The issue constitutes 25.05% of the post-IPO paid-up capital. The IPO is managed by Aryaman Financial Services Ltd., with Bigshare Services Pvt. Ltd. as the registrar. Aryaman Financial Services has handled 13 public issues in the past three fiscals, with a mixed track record of listing performance.

Vraj Iron and Steel Ltd. operates in the competitive steel industry with a strong focus on cost efficiency due to its captive power plants. The company has shown impressive growth in revenue and profitability, and its expansion plans are likely to enhance its capacity and market presence. Based on FY24 annualized earnings, the IPO appears reasonably priced, making it an attractive option for investors seeking medium to long-term gains. Given the company's robust financial performance, strategic expansion plans, and reasonable pricing, well-informed investors may consider parking moderate funds in VISL's IPO for medium to long-term rewards. However, investors should remain mindful of the competitive nature of the industry and the potential risks associated with the company's expansion projects.

Vraj Iron and Steel IPO Subscription Status (Bidding Details)

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Vraj Iron and Steel IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Vraj Iron and Steel IPO FAQs

What is Vraj Iron and Steel IPO?

Vraj Iron and Steel is issuing 8,260,870 equity shares with a face value of ₹10 each, totaling up to ₹171.00 Cr. The shares are being offered at a price of ₹195 to ₹207 each, with a minimum order quantity of 72 shares.

Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Vraj Iron and Steel IPO will open?

Vraj Iron and Steel will open on June 26, 2024 for QIB, NII, and Retail Investors.

When Vraj Iron and Steel IPO will end?

Vraj Iron and Steel will end on June 28, 2024.

What is Vraj Iron and Steel IPO Size?

Vraj Iron and Steel IPO size is 171.00 Cr.

What is Vraj Iron and Steel IPO Price Band?

Vraj Iron and Steel price band is ₹195 to ₹207 per share.

What is the Vraj Iron and Steel IPO Allotment Date?

Vraj Iron and Steel allotment date is July 01, 2024.

What is the Vraj Iron and Steel IPO Listing Date?

Vraj Iron and Steel listing date is July 03, 2024. The IPO is to be listed on BSE and NSE.

How to Vraj Iron and Steel IPO through Zerodha?

To apply for the IPO “Vraj Iron and Steel” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Vraj Iron and Steel IPO through Upstox?

To apply for the IPO “Vraj Iron and Steel” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Vraj Iron and Steel IPO Allotment Status?

For Vraj Iron and Steel IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Vraj Iron and Steel IPO GMP?

You can check out here: Vraj Iron and Steel IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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