Vraj Iron and Steel IPO issue size 171 cr , GMP, and Important details , lot size
Vraj Iron and Steel IPO is generating significant buzz in the market. This book-built issue aims to raise Rs 171.00 crores through the fresh issuance of 0.83 crore shares. Below is a comprehensive table of important details about the IPO, including dates, price band, lot sizes, and investor information.
Vraj Iron and Steel IPO Important Dates and Key Information
| Event | Date/Details |
|---|---|
| IPO Open Date | June 26, 2024 |
| IPO Close Date | June 28, 2024 |
| Basis of Allotment | July 1, 2024 |
| Initiation of Refunds | July 2, 2024 |
| Credit of Shares to Demat | July 2, 2024 |
| Listing Date | July 3, 2024 |
| 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 |
| Shareholding Pre-Issue | 24,721,750 shares |
| Shareholding Post-Issue | 32,982,620 shares |
Vraj Iron and Steel IPO Investor Category and Shares Offered
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investors | 2,478,259 (30.00%) | NA |
| QIB (Qualified Institutional Buyers) | 1,652,174 (20.00%) | NA |
| NII (Non-Institutional Investors) | 1,239,130 (15.00%) | |
| – bNII (Bids above ₹10L) | 826,087 (10.00%) | 819 |
| – sNII (Bids below ₹10L) | 413,043 (5.00%) | 409 |
| Retail Investors | 2,891,305 (35.00%) | 40,157 |
| Total Shares Offered | 8,260,868 (100%) |
Lot Size and Investment Details
| 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 |
Promoter Holding
| Shareholding | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter Holding | 99.99% | – |
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’s product portfolio comprises Sponge Irons, TMT Bars, MS Billets, and by-products such as Dolochar , Pellets, and Pig Iron, catering 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 and 235 contract workers.
Financial Information (Restated Consolidated)
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | ₹253.05 Cr | ₹191.54 Cr | ₹150.77 Cr | ₹126.33 Cr |
| Revenue | ₹304.81 Cr | ₹517.42 Cr | ₹414.38 Cr | ₹290.93 Cr |
| Profit After Tax | ₹44.58 Cr | ₹54.00 Cr | ₹28.70 Cr | ₹10.99 Cr |
| Net Worth | ₹187.50 Cr | ₹140.92 Cr | ₹87.14 Cr | ₹57.79 Cr |
| Reserves and Surplus | ₹162.78 Cr | ₹135.97 Cr | ₹82.19 Cr | ₹52.85 Cr |
| Total Borrowing | ₹49.30 Cr | ₹22.98 Cr | ₹42.51 Cr | ₹45.78 Cr |
Key Performance Indicators
| KPI | Values |
|---|---|
| ROE | 23.78% |
| ROCE | 25.34% |
| Debt/Equity | 0.27 |
| RoNW | 23.78% |
| P/BV | 2.73 |
| PAT Margin | 3.61% |
Vraj Iron and Steel IPO Objects of the Issue
The company proposes to utilize 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.
- General Corporate Purposes.
Vraj Iron and Steel IPO Subscription Status
The Vraj Iron and Steel IPO is subscribed 126.36 times as of June 28, 2024, 6:19:06 PM. The public issue is subscribed 58.31 times in the retail category, 173.99 times in the QIB category, and 221.66 times in the NII category.
| Category | Subscription (times) |
|---|---|
| QIB | 173.99 |
| NII | 221.66 |
| – bNII | 217.50 |
| – sNII | 229.99 |
| Retail | 58.31 |
| Total | 126.36 |
Vraj Iron and Steel IPO Conclusion
Vraj Iron and Steel Limited has shown strong financial performance and is set for further growth with its expansion plans. The IPO appears reasonably priced based on FY24 annualized earnings, making it an attractive option for medium to long-term investors.
For more detailed information, refer to the Vraj Iron and Steel IPO RHP.