Vraj Iron and Steel Limited IPO
- IPO Date26 Jun, 2024 to 28 Jun, 2024
- Listing Date03 Jul, 2024
- Face Value₹10 per share
- Issue Price₹195 to ₹207 per share
- Lot Size72 Shares
- Minimum Investment₹14,904
- Listing AtBSE, NSE
- Total Issue Size82,60,870 Shares
(aggregating up to ₹171.00 Cr) - Fresh Issue82,60,870 Shares
(aggregating up to ₹171.00 Cr)
- Offer for Sale-
- Issue TypeBook Built Issue IPO
- Share holding pre issue2,47,21,750
- Shareholding post issue3,29,82,620
IPO Dates
Closing Date
28 Jun, 2024
Initiation of Refunds
02 Jul, 2024
Listing Date
03 Jul, 2024
26 Jun, 2024
Opening Date
01 Jul, 2024
Basis of Allotment
02 Jul, 2024
Credit of Shares
Vraj Iron and Steel Limited Lot Size
Investors can bid for a minimum of 72 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 72 | ₹14,904 |
| B-HNI (Min) | 68 | 4896 | ₹10,13,472 |
| S-HNI (Min) | 14 | 1008 | ₹2,08,656 |
| S-HNI (Max) | 67 | 4824 | ₹9,98,568 |
| Retail (Max) | 13 | 936 | ₹1,93,752 |
Vraj Iron and Steel Limited Promoter Holding
The promoters of the company are Gopal Sponge and Power Private Limited, V. A. Transport Private Limited and Vijay Anand Jhanwar.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 99.99% | - |
Vraj Iron and Steel Limited COMPANY INFORMATION
Vraj Iron and Steel IPO is a book built issue of Rs 171.00 crores. The issue is entirely a fresh issue of 0.83 crore shares. Vraj Iron and Steel IPO opens for subscription on June 26, 2024 and closes on June 28, 2024. The allotment for the Vraj Iron and Steel IPO is expected to be finalized on Monday, July 1, 2024. Vraj Iron and Steel IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, July 3, 2024. Vraj Iron and Steel IPO price band is set at ₹195 to ₹207 per share. The minimum lot size for an application is 72 Shares. The minimum amount of investment required by retail investors is ₹14,904. The minimum lot size investment for sNII is 14 lots (1,008 shares), amounting to ₹208,656, and for bNII, it is 68 lots (4,896 shares), amounting to ₹1,013,472. Aryaman Financial Services Limited is the book running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. Refer to Vraj Iron and Steel IPO RHP for detailed information.
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 currently has a production capacity of 57,600 TPA of MS Billets, which its rolling mills can use to manufacture TMT Bars with a production capacity of 54,000 TPA.
The company's product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater 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, 7 at the Registered Office, 200 at the Raipur Plant, 87 at the Bilaspur Plant, and 235 contract workers.
Vraj Iron and Steel Limited IPO Analysis: Should You Invest?
Introduction to Vraj Iron and Steel Limited
Vraj Iron and Steel Limited is a well-established player in the iron and steel industry, headquartered in Raipur, Chhattisgarh. The company has a long history of manufacturing and trading iron and steel products, catering to a diverse range of industries.
IPO Details:
- Fresh Issue Size: Up to ?1,710 million.
- Issue Type: 100% Book Built Issue.
- Issue Date: Opens on June 26, 2024, and closes on June 28, 2024.
- Listing: The equity shares are proposed to be listed on BSE and NSE.
- Price Band: To be determined and announced before the opening date.
Risks:
The IPO marks the company's first public issue, and there is no formal market for its equity shares. Investors should carefully consider the risks, as equity investments can be volatile and involve a significant degree of risk, including the potential loss of the entire investment.
Key Highlights of the IPO
The company's initial public offering (IPO) is set to raise up to ?1,710 million through a fresh issue of equity shares. This IPO is crucial for the company's expansion plans and aims to enhance its production capabilities and market share.
Pros and Cons of the IPO
Pros:
- Growth Potential: The company operates in a growing industry with increasing demand for iron and steel products, driven by infrastructure development.
- Experienced Promoters: The promoters of the company have extensive experience in the iron and steel industry.
- Expansion Plans: Proceeds from the IPO will be used to fund the company's expansion plans, which could enhance its market presence and profitability.
Cons:
- Market Risks: As this is the company's first public issue, there is no assurance of active and sustained trading of its shares post-listing.
- High Competition: The iron and steel industry is highly competitive, and the company may face challenges in maintaining its market share.
- Dependence on Raw Material Prices: Fluctuations in the prices of raw materials could impact the company’s profitability.
Final Thoughts
Investing in the Vraj Iron and Steel Limited IPO presents an opportunity to participate in a growing industry backed by a company with experienced leadership. However, potential investors should carefully weigh the risks, especially given the uncertainties associated with a first-time public offering. Conducting thorough research and considering your risk tolerance is crucial before making an investment decision.
FAQs About Vraj Iron And Steel Limited Ipo
Vraj Iron and Steel Limited IPO will open on 26 Jun, 2024 and close on 28 Jun, 2024. Investors must apply within this period to participate.
The Vraj Iron and Steel Limited IPO price band is set between ₹195.00 and ₹207.00 per share. The minimum lot size is 72, requiring an investment of at least ₹14904.00.
The Vraj Iron and Steel Limited IPO shares are expected to be listed on 03 Jul, 2024, subject to regulatory approvals and final allotment.
You can track your Vraj Iron and Steel Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Vraj Iron and Steel Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.