Vraj Iron and Steel IPO Details, Financials, Valuation & Peers
Get everything you need to know about the Vraj Iron and Steel IPO. Explore Vraj Iron and Steel IPO details, including IPO dates, financial statements, valuation, peer comparison, and more.
Overview
Vraj Iron and Steel Limited is a prominent player in the steel manufacturing industry, specializing in the production of sponge iron, M.S. billets, and TMT bars under the brand name "Vraj." The company operates through two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, covering a total area of 52.93 acres. As of December 31, 2023, the combined installed capacity of these plants was 231,600 tons per annum (TPA), with plans to expand to 500,100 TPA by 2025. Additionally, Vraj Iron and Steel owns a captive power plant in Raipur with an installed capacity of 5 MW, which is set to increase to 20 MW.
Key Points:
- Product Range:
- Sponge Iron: Current capacity of 120,000 TPA, expanding to 235,500 TPA.
- M.S. Billets: Current capacity of 57,600 TPA, expanding to 210,600 TPA.
- TMT Bars: Capacity of 54,000 TPA.
- By-products: Includes dolochar, pellets, and pig iron.
- Manufacturing Facilities:
- Two Plants: Located in Raipur and Bilaspur, Chhattisgarh.
- Total Area: 52.93 acres.
- Raipur Plant: Includes a 5 MW captive power plant, expanding to 20 MW.
- Expansion Plans:
- Increased Capacity: Total capacity to increase from 231,600 TPA to 500,100 TPA by 2025.
- Captive Power Plant: Increasing capacity from 5 MW to 20 MW.
- Operational Timeline: Expanded sponge iron and power plant operational by Q4 FY 2024-25; M.S. billets by Q1 FY 2025-26.
- Sales and Distribution:
- Market Reach: Products cater to industrial customers and end-users.
- Sales Channels: Direct sales and through brokers/dealers.
- Revenue Contribution: Sponge iron, TMT bars, and M.S. billets account for over 95% of total revenue.
- Distribution: 193 employees at Raipur Plant, 91 at Bilaspur Plant, and 235 contract workers.
- Operational Efficiency:
- Integrated Manufacturing: Control over all aspects of operations (except raw material sourcing) to ensure quality and optimize operating margins.
- Captive Power: Reduces energy costs and mitigates production disruptions due to power outages.
Objects of the Issue
- Funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plant: (a) Repayment or prepayment of borrowings from HDFC Bank obtained by the Company for the capital expenditure towards the “Expansion Project” at Bilaspur Plant; (b) Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
- General corporate purposes
IPO Details
Discover essential information crucial for understanding an IPO, including the Price Band, Fresh Issue, Offer For Sale, Total IPO Size and more. Explore these key details to gain insight into the company's public offering.
| Fields | Details |
|---|---|
| IPO Dates | 26 Jun - 28 Jun 2024 |
| IPO Price Band | ₹ 195 – 207 per share |
| Fresh Issue | ₹ 171 crore |
| Offer For Sale | NA |
| Total IPO Size | ₹ 171 crore |
| Face Value | ₹ 10 |
| Listing On | BSE, NSE |
IPO Timeline
Explore important dates like IPO opening, closing, listing and others, outlining the journey of the Public Offering. This will help you grasp the entire IPO journey effortlessly.
| Event | Date |
|---|---|
| IPO Opening Date | 26 Jun 2024 |
| IPO Closing Date | 28 Jun 2024 |
| Basis Of Allotment | 01 Jul 2024 |
| Refunds | 02 Jul 2024 |
| Demat Transfer | 02 Jul 2024 |
| IPO Listing Date | 03 Jul 2024 |
Financial Statements
Explore a comprehensive financial data table showcasing key metrics including revenue, expenses, net income, and others. Gain valuable insights about the company's financial performance at a glance, facilitating informed decision-making and strategic planning for subscribing to the IPO.
| Period Ended | 31st March 2021 | 31st March 2022 | 31st March 2023 | Dec 2023 |
|---|---|---|---|---|
| Total Income | 290.93 | 414.38 | 517.42 | 304.81 |
| Total Expenses | 276.53 | 377.20 | 448.42 | 249.09 |
| Net Profit/Loss | 10.99 | 28.70 | 54.0 | 44.58 |
| NPM (*) | 3.78 | 6.93 | 10.47 | 14.79 |
| Total Assets | 126.33 | 150.77 | 191.54 | 253.05 |
| Total Liabilities | 68.54 | 63.64 | 50.62 | 65.55 |
* NPM represents the net profit margin, calculated as a percentage. All other figures are presented in crore (₹cr)
Valuation
Uncover significant valuation metrics such as EPS (Earnings Per Share), ROE (Return on Equity), ROCE (Return on Capital Employed), D/E Ratio (Debt-to-Equity Ratio), Current Ratio, and EBITDA Margin. These key indicators offer insights into the company's financial standing and performance, aiding in informed investment decisions.
| Period Ended | 31st March 2021 | 31st March 2022 | 31st March 2023 | Dec 2023 |
|---|---|---|---|---|
| EPS | 4.44 | 11.61 | 21.84 | 18.03 |
| ROE (%) | 19.01 | 32.94 | 38.32 | 23.78 |
| ROCE (%) | 20.68 | 32.14 | 44.98 | 25.34 |
| D/E Ratio | 0.82 | 0.51 | 0.17 | 0.27 |
| Current Ratio | 1.22 | 1.73 | 2.88 | 4.55 |
| EBITDA MARGIN (%) | 10.01 | 11.99 | 15.77 | 21.61 |
* Compiled from DRHP/RHP for valuation purposes.
Peer Comparison
Compare key financial metrics with industry peers to gain valuable insights into the company's performance compared to its competitors.
| Name | Revenue | P/E | EPS | RoNW | NAV |
|---|---|---|---|---|---|
| Vraj Iron & Steel Limited | 515.67 | 9.48 | 21.84 | 38.32 | 285 |
| Sarda Energy and Minerals Limited | 4,211.90 | 15.30 | 169.94 | 17.71 | 967.72 |
| Godawari Power and Ispat Limited | 5,753.04 | 16.14 | 61.16 | 20.31 | 277.09 |
| Shyam Metalics and Energy Limited | 12,610.18 | 18.56 | 33.26 | 11.85 | 280.79 |
* Revenue in (₹cr), RoNW in (%), EPS, NAV in (₹). P/E ratio is based on the highest price from the IPO price band.
Subscription Data from NSE and BSE
| Investor Type | Subscribed |
|---|---|
| Qualified Institutional Buyer (QIB) | 173.99 |
| Non-Institutional Investor (NII/HNI) | 221.66 |
| Retail Individual Investor (RII) | 58.31 |
| Total | 126.36 |
* All figures represent multiples of the subscription. Check subscriptions for other ongoing issues here.
IPO Registrar
Bigshare Services Private Limited
Phone: +91 22-62638200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Company Promoters
- VIJAY ANAND JHANWAR
- KUSUM LATA MAHESHWARI
- GOPAL SPONGE AND POWER PRIVATE LIMITED
- V.A. TRANSPORT PRIVATE LIMITED
- KIRTI ISPAT PRIVATE LIMITED
- BHINASWAR COMMERCIAL PRIVATE LIMITED
- UTKAL ISPAT PRIVATE LIMITED
Lead Managers
- Aryaman Financial Services Limited
Company Address
Vraj Iron and Steel Limited
First Floor, Plot No 63 & 66, Ph No 113, Mother Teresa Ward No. 43, Jalvihar Colony, Raipur, Chhattisgarh, India, 492001.
Phone: +91-771-4059002
Email: info@vrajtmt.in
Website: www.vrajtmt.in
FAQs
- What is the issue size of the Vraj Iron and Steel IPO?The Vraj Iron and Steel IPO has an issue size of ₹ 171 crore. This includes a fresh issue of ₹ 171 crore and an offer for sale (OFS) of NA.
- What is the price band of the Vraj Iron and Steel IPO?The price band for the Vraj Iron and Steel IPO is ₹ 195 – 207 per share.
- What are the bidding dates for the Vraj Iron and Steel IPO?The Vraj Iron and Steel IPO will open for bidding on 26 Jun 2024 and close on 28 Jun 2024.
- What is the allotment date for the Vraj Iron and Steel IPO?The allotment date for the Vraj Iron and Steel IPO is 01 Jul 2024.
- What is the listing date for the Vraj Iron and Steel IPO?The listing date for the Vraj Iron and Steel IPO is 03 Jul 2024.
- What is the Vraj Iron and Steel IPO grey market premium?The grey market premium (GMP) for the Vraj Iron and Steel IPO is currently at ₹50, with an expected listing gain of approximately 24.15%. Remember, the grey market premium is not an official indicator, but it reflects market perception and demand for the IPO shares.