Vraj Iron and Steel Limited

About the company

## **About  Vraj Iron and Steel Limited** Incorporated in 2004, Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. It also offers by-products such as dolochar, pellet and pig iron. Its products are sold directly and through brokers and dealers, to industrial customers and end-users. It operates two manufacturing facilities located at Raipur and Bilaspur in Chhattisgarh, with an aggregate installed capacity of 2,31,600 tons per annum as of 31 December 2023. It is also in the process of increasing the capacities of its existing manufacturing plants, which are expected to become operational in Q1 of FY26. The company has a captive power plant with an installed capacity of 5MW, which helps it reduce energy costs. Additionally operating a captive power plant reduces exposure to frequent power outages, which can otherwise lead to costly production disruptions. The company aims to expand its captive power plant aggregate installed capacity from 5 MW to 20 MW by Q4 FY25. As of 31 December 2023, it had a workforce of 531 employees. It sells its products mainly to intermediaries, who in turn sell them to end customers. It uses a B2BN business model with the primary goal of making enduring connections with its customers through strategic alignment to ensure steady orders. Between FY21 and FY23, Vraj Iron and Steel saw a 21% CAGR rise in its revenue from operations and over 70% in its profit. Moreover, India’s consumption of sponge iron, billets, and TMT bars is expected to increase at a CAGR of 7.5% to 8.5% between FY24 and FY26, which could benefit the company. Now, Vraj Iron and Steel Limited is launching its initial public offer (IPO). The total IPO issue size is ₹171 crore, comprising entirely a fresh issue. The money raised from the fresh issue will be used for repayment of borrowings, the ‘Expansion Project’, and general corporate purposes. Its shares will be listed on the NSE and BSE. Here are key details about the Vraj Iron and Steel IPO: Company Name| **Vraj Iron and Steel Limited Limited**|  | Company Type| **Private** ---|---|---|---|--- Company Established On|**2004**| ### **Financial snapshot** **Particulars**| **FY21**| **FY22**| **FY23**| **Q3FY24** ---|---|---|---|--- Revenue|₹ 290 crore|₹ 414 crore|₹ 515 crore|₹ 301 crore Net Profit|₹ 10.9 crore|₹ 28.7 crore|₹ 53.9 crore|₹ 44.5 crore ## **Here’s a quick look at Vraj Iron and Steel Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)** ### **Strengths and opportunities** 1. Its integrated and well-established manufacturing setup allows it to control all aspects of operations and operating margins, allowing it to create multiple points of sale across the steel value chain.  1. Manufacturing plants are strategically located in close proximity to the mineral belt in eastern India which provides easy access to raw materials and end users.  1. Such strategic location helps it overcome significant entry barriers compared to its competitors as it lowers transportation costs, provides logistics management and cost benefits, and improves its operating margins. 1. A diversified product mix with a strong focus on value-added products has reduced its dependency on a particular product and de-risked its revenue streams. 1. Consistent track record of financial performance with EBITDA margins of 10%, 11%, 15%, and 21% in FY21, FY22, FY23, and Q3 FY24, respectively. ### **Risks and threats** 1. Both its existing manufacturing facilities as well as its expansion project are concentrated in a single region which exposes it to geographical concentration related risks. 1. Subject to the volatile and cyclical nature of the iron and steel industry which might affect its results of operations and financial conditions.  1. Has experienced negative cash flows from investing and financing activities between FY21 and Q3 FY24. 1. Derives a significant portion of its revenue from its top 5 customers accounting for 41% of its revenue in Q3 FY24 without having long-term agreements with its customers. 1. Faces substantial competition from Tata Steel, JSW Steel, Steel Authority of India, Jindal Steel and Power, Godawari Power and ISPAT, ESL Steel, Sarda Energy & Minerals and Shyam Metalics and Energy. 1. Exposed to key challenges in the global steel industry such as global slowdown, availability of raw materials, price volatility, trade barriers, environmental concerns, and regulations that are beyond its control. ## **Vraj Iron and Steel Limited IPO details** ### **** **Vraj Iron and Steel Limited IPO date** According to the offer document filed by the company with the SEBI, the Vraj Iron and Steel IPO’s opening date—in other words, the Vraj Iron and Steel IPO launch date—will be 26 June 2024. The Vraj Iron and Steel IPO closing date is 28 June 2024. After this, investors will be updated about the allotment status on 1 July 2024. Investors, who have been allotted shares, can expect them to be credited to their demat account on 2nd July 2024. The Vraj Iron and Steel IPO listing date is 3rd July 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. ### **** **Vraj Iron and Steel Limited** **IPO Price Band** The IPO is a fresh issue. The Vraj Iron and Steel IPO price band has been set between ₹195 and ₹207 per share. Interested investors can choose a price within this band to apply for the IPO. The Vraj Iron and Steel IPO listing price will be determined on 3rd July 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. **** **Vraj Iron and Steel Limited IPO Lot size** The Vraj Iron and Steel IPO details have been declared. The Vraj Iron and Steel IPO lot size is set at 72 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Vraj Iron and Steel IPO issue size is approx ₹171 crore. ## **How to pre-apply for the Vraj Iron and Steel Limited** **IPO?** You can pre-apply for the Vraj Iron and Steel Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Vraj Iron and Steel Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Pre-Apply’ 1. Accept the mandate on your UPI app ## **How to apply for the Vraj Iron and Steel Limited** **IPO?** If you are interested in this investment opportunity but unsure how to apply for the Vraj Iron and Steel Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Vraj Iron and Steel Limited IPO on Upstox: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Vraj Iron and Steel Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Apply’ 1. Accept the mandate on your UPI app ## **How to check the Vraj Iron and Steel Limited** **IPO** **allotment status?** When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Vraj Iron and Steel Limited IPO allotment status: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover page, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, you will find the ‘View all’ option 1. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab 1. In the ‘IPO’ tab, click on ‘My applications’  1. In ‘My applications’, under the History section, your Vraj Iron and Steel Limited IPO allotment status will be mentioned Check Allotment Status ## **Open a demat account with Upstox to apply for the Vraj Iron and Steel Limited** **IPO** To apply for the Vraj Iron and Steel Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: 1. Click [ **here**](https://upstox.com/open-demat-account/\OpenOpen?landing_page=learning-center/demat-account/demat-account-opening-procedure) to visit the demat account opening page on the Upstox website.  1. Enter your phone number and other essential details to begin opening a demat account. 1. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  1. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? [Open Demat Account](https://upstox.com/open-demat-account/\Open\Open) ## **Upstox – trading app to apply for the Vraj Iron and Steel Limited IPO** Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Vraj Iron and Steel Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   26 Jun 2024

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   28 Jun 2024

   Last day to place your bid

3. Basis of Allotment

   Completed
   28 Jun 2024

   Share allotment finalised

4. Refund Initiation

   Completed
   02 Jul 2024

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   01 Jul 2024

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   03 Jul 2024

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.