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Vraj Iron IPO
Vraj Iron & Steel Ltd
₹14,040 /72 sharesMinimum Investment
Vraj Iron IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 26 Jun ‘24 - 28 Jun ‘24 | ₹14,040 | 72 | ₹195 - ₹207 |
| Issue Size | IPO Doc |
|---|---|
| 171.00Cr | RHP PDF |
Subscription rate
As of 28 Jun'24, 05:00 PM
| Qualified Institutional Buyers | 163.90x |
| Non-Institutional Investor | 208.25x |
| Retail Individual Investor | 53.04x |
| Total | 117.97x |
About Vraj Iron
Founded in
2004
Managing director
Mr.Vijay Anand Jhanwar
Parent organisation
Vraj Iron & Steel Ltd
Strengths & Financials of Vraj Iron
Strengths
Risks
Vraj Iron and Steel operates two integrated steel manufacturing plants located in Bilaspur and Raipur, Chhattisgarh. The integrated nature of these plants allows the company to manage nearly all aspects of its operations (except for the sourcing of primary raw materials), which helps in maintaining control over quality and enhancing operating margins.
The company holds ISO 14001: 2015 certification for Environment Management Systems for its Raipur plant.
The strategic locations of the manufacturing plants in Bilaspur and Raipur, within the mineral-rich state of Chhattisgarh and near the mineral belt of eastern India, provide easy access to raw materials and end users.
For the financial years 2023, 2022, and 2021, Vraj Iron and Steel's total revenue from manufacturing operations has consistently risen from Rs 509.50 crore to Rs 408.65 crore and Rs 289.09 crore, respectively. During this period, net profit too climbed steadily from Rs 10.99 crore in FY21 to Rs 28.70 crore in FY22 to Rs 54 crore in FY23.
In years 2021, 2022, and 2023, and for the three months ending June 30, 2023, the top three raw material suppliers for Vraj Iron and Steel accounted for 46.96%, 44.16%, 43.77%, and 69.25% of their supplies, respectively. If any of these suppliers fail to deliver key materials like iron ore, iron ore pellets, or coal, it could disrupt manufacturing and delay product delivery to customers.
The manufacturing plants in Raipur and Bilaspur are essential to the company's operations. Any unexpected loss, shutdown, or slowdown at these facilities could significantly impact the business, financial results, and overall condition.
The company’s financial performance relies heavily on the sale of steel products such as TMT bars, MS billets, and sponge iron, which made up 96.41%, 95.31%, and 97.01% of total revenue in fiscal years 2021, 2022, and 2023, respectively. Dependence on these products means that changes in customer preferences, a decline in demand, or quality issues could negatively affect sales, brand loyalty, and financial health.
A significant portion of Vraj Iron and Steel's revenue comes from its top 10 customers, who accounted for 58.27%, 61.06%, 58.56%, and 77.56% of total revenue for fiscal years 2021, 2022, 2023, and for the three months ending June 30, 2023, respectively. Losing any of these major customers or seeing a substantial reduction in their business could adversely affect the company's financial performance.
Vraj Iron and Steel has both short-term and long-term loans from lenders. As of March 31, 2023, the company had Rs 14.99 crore in short-term loans, including current maturities of long-term borrowings, making up 65.23% of total borrowings. Additionally, it had Rs 7.99 crore in long-term loans, representing 34.77% of total borrowings from banks and financial institutions. Any inability to service or pay back these loans can negatively impact the company.
The company has some contingent liabilities not reflected in the financial statements, which, if realized, could negatively affect its financial condition.
Vraj Iron Financials
*All values are in Rs. Cr
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Application Details of Vraj Iron IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹195 - 207 | Upto ₹2 Lakh |
| High Networth Individual | ₹195 - 207 | ₹2 - 5 Lakh |
For Vraj Iron IPO, eligible investors can apply as Regular.