Vraj Iron and Steel Limited is gearing up to launch its initial public offering (IPO) on June 26, 2024, with the subscription period running until June 28, 2024. The company aims to raise approximately ₹171 crore through this IPO, with shares priced between ₹195 and ₹207 each. The shares will be listed on both the NSE and BSE, carrying a face value of ₹10 per share.
Incorporated in June 2004, Vraj Iron and Steel Limited is a key manufacturer of Sponge Iron, M.S. Billets, and TMT bars under the Vraj brand. The company operates two major manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, spanning a total area of 52.93 acres. These facilities have a combined production capacity of 231,600 tons per year, catering to both industrial customers and end-users. Notably, the Raipur plant has achieved the Environmental Management System Certification under the ISO 14001:2015 standard, highlighting its commitment to sustainable practices.
The IPO is set to be a fully fresh issue, meaning all funds raised will be new capital for the company. The proceeds are earmarked for capital expenditure, particularly for an expansion project at the Bilaspur Plant, which is estimated to cost ₹164.50 crore. Additionally, the funds will support general corporate purposes.
The financial performance of Vraj Iron and Steel has been robust, with the company reporting a net profit of ₹54 crore for the fiscal year ending March 2023, marking an 88.1% increase from the previous year. Revenue from operations also saw a significant rise, reaching ₹515.7 crore, a 24.5% increase year-on-year. For the nine months ending December 2023, the company recorded a net profit of ₹44.58 crore on revenue of ₹301.3 crore.
Vraj Iron and Steel Limited employs a workforce of 533, including 298 permanent employees and 235 contract workers, spread across its manufacturing plants and registered office. The company, formerly known as Phil Ispat Pvt. Ltd., is a subsidiary of Gopal Sponge and Power Private Limited (GSPPL) and has been expanding its capacities and diversifying into related segments under the leadership of Vijay Anand Jhawar, who took over as Chairman and Managing Director after the demise of the founder, Ram Gopal Jhawar, in 2013.
Aryaman Financial Services is the lead manager for the IPO, with Bigshare Services acting as the registrar. The upcoming IPO signifies a significant step for Vraj Iron and Steel Limited as it seeks to leverage fresh capital to enhance its production capabilities and continue its growth trajectory in the iron and steel industry.