Vraj Iron IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Vraj Iron

CMP

236.88

-2.15 (-0.90%)

  • DRHP
₹207

Offer Price

₹ 171.00 Cr

Issue Size

₹ 14,904

Min Investment

119.04x

Times Subscribed

72

Lot size

Time Line

  • 26
    Jun 2024
    Open
  • 28
    Jun 2024
    Close
  • 01
    Jul 2024
    Finalisation of Basis of Allotment
  • 02
    Jul 2024
    Initiation of Refunds
  • 02
    Jul 2024
    Transfer of Shares to Demat Account
  • 03
    Jul 2024
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Expansion of manufacturing facilities.

  • Reduce Debt Levels and improve Debt to Equity Ratio.

  • Strengthen its customer base by growing existing customer business and acquiring new customers.

  • Focus on operational efficiencies to improve returns.

Products & Services

  • Vraj Iron & Steel Limited is engaged in manufacturing of Sponge Iron, M.S. Billets, and TMT bars.

Strengths

  • Integrated and well-established manufacturing setup.

  • Manufacturing plants are strategically located, supported by robust architecture, leading to cost efficiencies and a stable supply chain.

  • Quantity and Average price of Coal procured by the company.

  • Diversified product mix with strong focus on value added products.

  • Experienced Promoter, Board, and management team.

Risks

  • Both of its existing manufacturing facilities are concentrated in a single region i.e. Raipur and Bilaspur, Chhattisgarh. Further its Expansion Project is also being implemented at Bilaspur, Chhattisgarh and hence the company faces geographical concentration related risks.

  • 100% of its revenue is from sale of the company steel products such as TMT Bars, MS Billets, Sponge Iron & others related items. Volatility in the demand and pricing in the iron and steel industry is common and is cyclical in nature. A decrease in steel prices may have a material adverse effect on its business, results of operations, prospects and financial condition.

  • The company has had experienced negative cash flows from operating, investing and financing in the recent past, and its may have negative cash flows in the future. The company net cash flow for the period / years are set forth in the table below.

  • Capital expenditure to the tune of Rs. 1,295 million required towards the "Expansion Project" at Bilaspur would be funded out of the Net Proceeds of the Issue. Hence, the company has not made any alternate arrangements for the same. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

  • Total capital expenditure for the Expansion Project is Rs.1,645 million and we have incurred Rs. 1,020 million till June 03, 2024. The company has not yet placed orders / made payment in relation to Rs. 625 million to be incurred for the Expansion Project. Any delay in placing the orders or inability of the vendors to provide the plant and machineries or complete the civil and related works etc. in a timely manner, or at all, the same may result in time and cost over-runs.

Company Promoters

Promoters Holding

Issue For IPO
99.99%
Pre Holding

99.99%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 414.04 (42.40%) 515.67 (24.60%) 38.32 (-)
Gross Profit 414.04 (42.40%) 515.67 (24.60%) 38.32 (-)
Net Income 414.04 (42.40%) 515.67 (24.60%) 38.32 (-)
Assets 414.04 (42.40%) 515.67 (24.60%) 38.32 (-)
Liabilities 414.04 (42.40%) 515.67 (24.60%) 38.32 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Vraj Iron & Steel Ltd 515.67 54.00 165.74 25.24 38.32 109.22 284.20 4.27 0.15
Sarda Energy & Minerals Ltd 4,211.90 602.11 5,481.38 5,481.38 17.65 169.94 996.12 10.98 0.41
Godawari Power & Ispat Ltd 5,753.04 793.40 5,159.36 5,159.36 20.31 61.16 304.22 15.37 0.08
Shyam Metalics & Energy Ltd 12,610.18 857.60 11,188.68 11,188.68 11.97 33.26 295.91 7.66 0.16

Book Running Managers

  • Aryaman Financial Services Ltd

Registrar & Transfer Agent

Bigshare Services Pvt Ltd

Office No 56-2,
Pinnacle Busine.Park,
Mahakali Caves Road - Mumbai - 400093
Phone : 91-22-62638200 Fax: 91-22-63638299

Company Contact Information

1st Flr Plot #63 & 66 PH # 113,
M.Ter.Ward #43 Jalvihar Colony,
Raipur - 492001
Phone : +91 771 4059002 Email : info@vrajtmt.in www.vrajtmt.in

Offer Related Information

Initial public offering of up to 8,260,869^ equity shares of face value of Rs. 10 each ("Equity Shares") of Vraj Iron and Steel Limited ("The Company" or the "Issuer") for cash at a price of Rs. 207 per equity share (including a premium of Rs. 197 per equity share) ("Issue Price") aggregating to Rs. 171.00^ crores ("The Issue"). The issue will constitute 25.05 % of the post-issue paid-up equity share capital. The face value of the equity shares is Rs. 10 each and the issue price is 20.70... More

News

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