Vraj Iron and Steel IPO

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26th – 28th Jun 2024
03 Jul 2024
₹267 – ₹281
53 shares (₹14893)
171cr

Schedule

Issue open date 26 Jun 2024
Issue close date 28 Jun 2024
UPI mandate deadline 28 Jun 2024 (5 PM)
Allotment finalization 01 Jul 2024
Refund initiation 02 Jul 2024
Share credit 02 Jul 2024
Listing date 03 Jul 2024
Mandate end date 13 Jul 2024
Lock-in end date for anchor investors (50%) 28 Jul 2024
Lock-in end date for anchor investors (remaining) 26 Sep 2024

About

Incorporated in 2004, Vraj Iron and Steel is engaged in the manufacturing of Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company’s product offerings such as Sponge Iron, TMT Bar, MS Billets, and by-products Dolochar, Pellet, and Pig Iron cater to a mix of customers that consist of industrial customers and end-users.

It operates through two manufacturing plants located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. As of December 31, 2023, the aggregate installed capacity of its manufacturing plants was 2,31,600 tons per annum (TPA) (comprising intermediate and final products). The manufacturing plant at Raipur also includes a captive power plant with an aggregate installed capacity of 5 MW. The company has also obtained Environment Management System Certification (EMSC) under the new standard of ISO 14001: 2015 for its Raipur Plant.

Funds Raised in the IPO Amount
Overall ₹171 crores
Fresh Issue ₹171 crores
Offer for sale

Financial Snapshot

Financial Year Ended March 2021 March 2022 March 2023 December 2023
Total Assets 126.33 150.77 191.54 253.05
Revenue 290.93 414.38 517.42 304.81
Profit After Tax 10.99 28.70 54.00 44.58
EPS 4.44 11.61 21.84 18.03

*All figures except EPS are in ₹ Crores

Risk factors

  • Business cyclicality: The company generates 100% of its revenue through the sale of steel products like TMT Bars, MS Billets, Sponge Iron, and related items. The iron and steel industry is inherently prone to volatility in demand and pricing, exhibiting cyclical patterns. A decline in steel prices could significantly impact the business, operational outcomes, prospects, and financial stability.
  • Client concentration and absence of long-term contracts: The company lacks long-term contracts with its customers and relies heavily on its top 10 clients for approximately 64% of its revenues. Any loss of, or substantial decrease in revenue from, one or more of these key clients would have a substantial adverse effect on the business, operational results, and financial standing.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 02, 2024, on the Registrar’s website and the NSE website.