IPO Details
RHP/DRHPIssue Date
--
Investment/lot
₹ 14904
Price Range
195 - 207
Lot Size
72
IPO Size
₹ 171.00 Cr
IPO Listing Details
Listing On
3 Jul'24
Issue Price
207
Listed Price
₹ 240
Retail Gain/Listing Gain
▲15.94%
Schedule of Vraj Iron & Steel IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
03/07/2024
Viraj Iron & Steel Company Background
Vraj Iron and Steel manufactures sponge iron, M.S. billets, and TMT bars under the brand name “Vraj.”
Alongside this, the company also offers by-products such as dolochar, pellets, and pig Iron, catering to a diverse customer base comprising both industrial clients and end-users. They sell their products directly and through brokers and dealers.
With that, let's take a look at the competitive strengths and risk factors for Vraj Iron and Steel Limited:
Viraj Iron & Steel Competitive Strengths
Integrated and well-established manufacturing setup
The company’s total income has grown at a CAGR of 33.4% between Fiscal 2021 and Fiscal 2023, driven by successful market share capture and an increased presence in established markets. Between Fiscal 2021 and Fiscal 2023, they achieved a CAGR of 78% in the quantity of TMT Bars sold and an 8% CAGR in the quantity of sponge iron sold.
Diversified product mix with a strong focus on value-added products
Their products primarily consist of sponge iron, TMT bars, and M.S. billets, accounting for large percentages of their total revenue from operations, according to their Restated Consolidated Financial Statements. This diversified product range has led to a varied product mix, reducing dependency on any single product and mitigating risks to their revenue streams.
Consistent track record of growth and financial performance
Their focus on operational and functional excellence has contributed to a strong track record of financial performance. Total income grew at a CAGR of 33.4% between Fiscal 2021 and Fiscal 2023, EBITDA at a CAGR of 67.2%, and Profit After Tax at a CAGR of 121.7%. This growth is attributed to an increased share of value-added product sales, including TMT bars and sponge iron, efficient raw material procurement from nearby sources, and margin expansions through robust cost controls.
Risk Factors
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Both manufacturing facilities are concentrated in a single region in Chhattisgarh
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100% of their revenue comes from selling steel products. The iron and steel industry is prone to demand and price volatility, which is cyclical. A decrease in steel prices could adversely affect their business, operations, prospects, and financial condition.
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The company has experienced negative cash flows from operating, investing and financing in the recent past, and may have negative cash flows in the future.
Key Strategies
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Expansion of manufacturing facilities
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Reduce debt levels and improve debt-to-equity ratio
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Strengthen customer base by growing existing business and acquiring new customers
Viraj Iron & Steel Limited Key Financials
Here are the key financials for Vraj Iron and Steel Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Vraj Iron & Steel Ltd IPO?
Here are the steps to apply for Vraj Iron & Steel Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Vraj Iron & Steel IPO FAQs
When is Vraj Iron & Steel IPO listing date?
Vraj Iron & Steel IPO will list on 2024-07-03.
What is the issue size of Vraj Iron & Steel IPO?
171.00 is the issue size of Vraj Iron & Steel IPO.
What is the minimum lot size required for Vraj Iron & Steel IPO?
The minimum lot size is 72 shares and the investment required is ₹14904.
What is the price band of the Vraj Iron & Steel IPO?
The price band of Vraj Iron & Steel IPO is ₹195 to ₹207.
Where can I read more about Vraj Iron & Steel business?
You can read more about Vraj Iron & Steel and its IPO from the company’s red herring prospectus (RHP) here.
What is the Vraj Iron and Steel Limited IPO?
The Vraj Iron and Steel Limited IPO has an issue size of Rs. 171 crores. The IPO opens for subscription on 26th June 2024 and closes on 28th June 2024
Who is the Registrar for Vraj Iron and Steel Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
