Vraj Iron and Steel IPO: From products to financials, here are 10 key things to know from RHP before investing

The ₹171-crore IPO is an wholly caller equity stock offering without immoderate offer-for-sale component. Public subscriptions for shares are being accepted astatine prices betwixt ₹195 and ₹207 per share. The concern plans to usage the revenues from the IPO for wide firm purposes and enlargement initiatives astatine the Bilaspur site.

Vraj Iron and Steel announced connected Tuesday that it had raised somewhat much than ₹51 crore from anchor investors, 1 time earlier its opening stock merchantability opened for nationalist subscription.

The registrar of the Vraj Iron and Steel IPO is Bigshare Services Pvt Ltd, portion the publication moving pb manager is Aryaman Financial Services Limited.

Also Read: Vraj Iron and Steel IPO booked implicit 8x connected the 2nd bidding day. Apply oregon not? Check GMP, review, subscription status.

Vraj Iron and Steel IPO Promoters

The promoters of their company are: Kirti Ispat Private Limited, Bhinaswar Commercial Private Limited, Utkal Ispat Private Limited, Vijay Anand Jhanwar, Kusum Lata Maheshwari, Gopal Sponge and Power Private Limited, V.A. Transport Private Limited. As of the day of Red Herring Prospectus, 24,721,720 equity shares, oregon 99.99% of the company's issued, subscribed, and paid-up equity stock capital, are held collectively by its promoters.

Vraj Iron and Steel Business

The Raipur-based institution Vraj Iron and Steel produces TMT (thermomechanical treatment) bars, MS (mid steel) billets, and sponge iron.

It runs 2 accumulation facilities successful Chhattisgarh, 1 each successful Raipur and Bilaspur.

The RHP stated that the steadfast anticipates expanding the aggregate installed capableness of its captive powerfulness plants from 5 MW to 20 MW and its wide installed capableness from 231,600 tonne per annum (TPA) to 500,100 TPA pursuing the completion of the enlargement project.

Also Read: Vraj Iron and Steel IPO booked 3.47x connected archetypal bidding day. 10 cardinal risks investors should cognize earlier investing

Vraj Iron and Steel Products

The steadfast serves some concern and end-user clients with its merchandise lines, which see Sponge Iron, TMT Bar, MS Billets, and its by-products, Dolochar, Pellet, and Pig Iron. The concern offers its goods some straight to customers and done dealers and brokers.

Vraj Iron and Steel Customers

The steadfast sells its products straight to merchants oregon done their representatives to concern clients. They don't usually motion semipermanent contracts with their clients, contempt the information that they person had repetition concern and built connections with immoderate of them. The apical 10 consumers of the concern relationship for a sizeable magnitude of its income.

Also Read: Vraj Iron and Steel IPO: GMP, subscription status, price, review, different details. Buy oregon not?

Vraj Iron and Steel Industry

Fuelled by improvement successful measurement and realisation, the Indian alloy assemblage grew astatine a CAGR of 16.4% successful worth presumption betwixt FY19 and FY22. The assemblage grew to a standard of Rs. 9 lakh crore successful FY22 arsenic finished alloy prices accrued by 45% connected an yearly basis. The industry's size was 9.2 lakh crore during FY23, a 2.7% year-over-year increase. The 13.3% year-over-year emergence successful finished alloy volumes and the precocious terms of alloy are the reasons for this expansion.

Vraj Iron and Steel Group Companies

The company's Group Companies see Vraj Metaliks Private Ltd, Vraj Commercial Private Ltd, and MVK Industries Private Ltd.

Vraj Iron and Steel IPO Peers

The company's listed peers are Sarda Energy and Mineral Ltd, Godawari Power and Ispat Ltd, and Shyam Metalics and Energy Ltd.

Vraj Iron and Steel IPO - Key Risks

Some of the cardinal risks are arsenic follows;

• Given that it has lately had antagonistic currency flows from financing, investing, and operating, the institution whitethorn proceed to person antagonistic currency flows successful the future.
• The "Expansion Project" successful Bilaspur would request superior expenditures of ₹1,295 million, which would beryllium financed from the Net Proceeds of the Issue. As a result, the institution doesn't person immoderate further plans for the same. Their operations, fiscal results, and maturation objectives whitethorn endure from immoderate inability to rise oregon conscionable the same.

Also Read: Vraj Iron and Steel IPO opens tomorrow: GMP, contented details, 10 cardinal things to know

Vraj Iron and Steel Financials

Between the fiscal twelvemonth ending connected March 31, 2023, and March 31, 2022, Vraj Iron and Steel Limited had a 24.87% emergence successful gross and an 88.12% summation successful nett aft taxation (PAT).

Lock-in of equity shares allotted to anchor investors

A 90-day lock-in play volition use to 50% of the equity shares allotted to anchor investors successful the anchor capitalist portion, and a 30-day lock-in play volition use to the remaining 50% of shares.

Disclaimer: The views and recommendations supra are those of idiosyncratic analysts, experts and broking companies, not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 27 Jun 2024, 03:14 PM IST