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Vraj Iron IPO
Vraj Iron & Steel Ltd
₹14,040 /72 sharesMinimum investment
IPO details
Minimum investment
₹14,040
Price range
₹195 - ₹207
Lot size
72
Issue size
171 Cr
Face value
10
IPO document
Subscription rate
Qualified Institutional Buyers163.90x
Non-Institutional Investor208.25x
Retail Individual Investor53.04x
Total117.97x
As of 28 Jun'24, 05:00 PM
Schedule
26 Jun 2024
IPO open date
28 Jun 2024
IPO close date
1 Jul 2024
Allotment date
1 Jul 2024
Funds unblock or debit
3 Jul 2024
Tentative listing date
About
Founded in
2004
MD/CEO
Mr.Vijay Anand Jhanwar
Parent organisation
Vraj Iron & Steel Ltd
Vraj Iron Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
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.
Application details
For Vraj Iron IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹195 - ₹207 | Upto ₹2 Lakhs | 72 |
| High Networth Individual | ₹195 - ₹207 | ₹2 - ₹5 Lakhs | 72 |