- Fixes price band at ₹195-207 per equity share of face value of ₹ 10 each
- Bid /Issue will close on Friday, June 28
- The minimum lot size for retail investors is set at one (72 shares)
- The bidding for anchor investors will open for a day on Tuesday, June 25.
NE BUSINESS BUREAU
AHMEDABAD, JUNE 24
Vraj Iron and Steel on Friday announced it is set to raise ₹171 crore through its initial share-sale, which opens for public subscription on Wednesday, June 26. The three-day initial public offering (IPO) will conclude on Friday, June 28 and the bidding for anchor investors will open for a day on Tuesday, June 25.
The price band for the IPO is set at ₹195 to ₹207 per equity share.
The minimum lot size for retail investors is set at one (72 shares), requiring a minimum investment of ₹14,904 to participate in the IPO. For the SNIIs (small non-institutional investors), the minimum lot size investment is 14 lots (1,008 shares), totaling ₹208,656.
The fresh issue comprises 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.
The issue is being made through the book-building process, with up to 50% of the net issue available for allocation to qualified institutional buyers on a proportionate basis, 15% to non-institutional investors, and a minimum of 35% of the net issue is available for allocation to retail investors on a proportionate basis.
The capital expenditure estimated to be ₹ 164.50 crore towards Capital expenditure for the “Expansion Project” at Bilaspur Plant. The Company has already deployed ₹ 70 crore from loan from HDFC Bank which is proposed to be repaid from net proceeds of the IPO. For the balance amount of ₹ 94.5 crore the Company has already deployed ₹ 32.00 crore from internal accrual and further wish to deploy ₹ 3.00 crore from internal accruals. The rest of the [₹ 59.5 crore is further to be funded from the net proceeds of the IPO in FY 2024-25.
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
Raipur-based Vraj Iron and Steel is into manufacturing of sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars.
It operates through two manufacturing plants at Raipur and Bilaspur in Chhattisgarh.
After implementation of the expansion project, the company expects to increase its aggregate installed capacity from 231,600 tonne per annum (TPA) to 500,100 TPA and captive power plants’ aggregate installed capacity from 5 MW to 20 MW.
The company expects the proposed expansion to become operational in this current fiscal year.
Aryaman Financial Services is the sole book running lead manager, while Bigshare Services is the registrar for the IPO. Equity shares of both companies are proposed to be listed on NSE and BSE.
