Vraj Iron and Steel IPO to Open for Subscription Tomorrow: Here are Key Details

Vraj Iron and Steel Limited is gearing up to launch its initial public offering (IPO) for public subscription tomorrow, opening on Wednesday, June 26. This Raipur-based company is set to raise ₹171 crore through the IPO. The three-day IPO bidding process will last until Friday, June 28. Ahead of the public offer, today’s gray market premium for Vraj Iron and Steel indicates a figure of ₹53.

Vraj Iron and Steel Ltd. will offer its shares in the price band of ₹195 to ₹207 per share. Interested investors can bid for a minimum of 72 shares in one lot and in multiples thereafter. The IPO will consist only of fresh issue shares without any offer-for-sale component.

The funds generated from the IPO will be utilized for a project at the Bilaspur facility aimed at expanding production capacity and for general operational purposes. Vraj Iron and Steel specializes in the production of sponge iron, M.S. billets, and TMT bars. Operating through two plants in Raipur and Bilaspur in Chhattisgarh, the company looks to grow its aggregate installed capacity to 500,100 TPA.

In terms of financial performance, Vraj Iron and Steel reported a notable 88% growth in net profit, reaching ₹54 crore in the fiscal year ended March FY23. Additionally, the company’s revenue from operations surged by 24.5% to ₹515.7 crore compared to the previous year.

The IPO is managed by Aryaman Financial Services as the sole Book Running Lead Manager and Bigshare Services as the registrar. Vraj Iron and Steel intends to list its shares on both NSE and BSE post the IPO.