Vraj Iron and Steel Ltd. IPO to Open on June 26

Vraj Iron and Steel Ltd. is a leading iron and steel manufacturer with plants in Raipur and Bilaspur, Chhattisgarh carefully nurtured by Vijay Anand Jhawar, Chairman and Managing Director of the Company 

BILKULONLINE

Ahmedabad, June 21: The initial public offering (IPO) of Vraj Iron and Steel Ltd. is set to open on June 26, 2024, and will be available for subscription until June 28, 2024. The shares will be listed on both the NSE and the BSE on the IPO mainboard. The stock carries a face value of ₹10 per share, with a price band set between ₹195 and ₹207 per share.

Purpose of the IPO:
The proceeds from the IPO will be used to fund:

Capital expenditure for the “Expansion Project” at the Bilaspur Plant, estimated at ₹1,645 million (₹164.50 crore).
General corporate purposes.
Key Highlights:

The IPO will be entirely a fresh issue, with no offer for sale (OFS) component. This means the IPO will bring fresh funds into the company, though it will also be earnings per share (EPS) and equity dilutive.
The fresh issue comprises 82,60,870 shares (approximately 82.61 lakh shares). At the upper price band of ₹207 per share, this translates to a fresh issue size of ₹171.00 crore. As there is no OFS component, the total IPO size will also be ₹171.00 crore.
Financial Performance:

For the fiscal year ending March FY23, Vraj Iron reported an 88.1% increase in net profit, reaching ₹54 crore. Revenue from operations grew by 24.5% to ₹515.7 crore compared to the previous year.
For the nine months ending December FY24, the company recorded a net profit of ₹44.58 crore on revenue of ₹301.3 crore.

Key Managers:

Lead Manager: Aryaman Financial Services
Registrar: Bigshare Services
Vraj Iron and Steel Limited, formerly known as Phil Ispat Pvt. Ltd., is a subsidiary of Gopal Sponge and Power Private Limited (GSPPL) Raipur, involved in steel and power. The company has manufacturing units in Raipur and Bilaspur, Chhattisgarh, and is expanding its capacities and diversifying into related segments.

Leadership:

The company was founded by Ram Gopal Jhawar. After his demise in 2013, his son Vijay Anand Jhawar took over as the Chairman and Managing Director. Under his leadership, the group has transformed many sick units into profitable and diversified entities.
Vijay Anand Jhawar, along with Deepak Biyani, Vice President of Aryaman Financial Services, interacted with the media in Ahmedabad on Friday to discuss the upcoming IPO.

Note: Investors must learn thoroughly about the prospects of the company before investing.