Vraj Iron and Steel Ltd IPO opens today. Check the Gmp and other details here
Vraj Iron and Steel Ltd manufactures Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. They operate two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, spanning 52.93 acres. As of March 31, 2023, the total installed capacity of these plants was 231,600 tons per year, including both intermediate and final products. Their product portfolio includes Sponge Iron, TMT Bars, MS Billets, and by-products such as Dolochar, Pellets, and Pig Iron, serving a mix of industrial customers and end-users.
Vraj Iron and Steel Ltd Financials
(Amt in Crore)
| Financial Metric | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
|---|---|---|---|
| Assets | 191.54 | 150.77 | 126.33 |
| Revenue | 517.42 | 414.38 | 290.93 |
| Profit After Tax | 54.00 | 28.70 | 10.99 |
| Net Worth | 140.92 | 87.14 | 57.79 |
| Reserves & Surplus | 135.97 | 82.19 | 52.85 |
| Total Borrowing | 22.98 | 42.51 | 45.78 |
Vraj Iron and Steel Ltd Strengths & Weakness
. Integrated steel plants in Bilaspur and Raipur, Chhattisgarh, enhance efficiency.
. Total installed capacity of 231,600 TPA across two plants.
. Backward integration ensures control over production and quality.
. Captive power plant with 5MW capacity reduces energy costs.
. Diverse product portfolio including Sponge Iron, TMT Bars, MS Billets.
. Consistent financial growth with a CAGR of 33.4% (FY21-FY23).
Weakness
. Geographical concentration risks due to facilities in Chhattisgarh.
. Revenue is vulnerable to steel industry demand and price volatility.
. Negative cash flows from operations impact financial stability.
. Expansion project relies on capital expenditure of ₹1,295 million.
. Delay in expansion may result in time and cost overruns.
. Majority of revenue from top 10 customers risks financial stability.
Company’s Promoters
- Gopal Sponge and Power Private Limited
- V. A. Transport Private Limited
- Vijay Anand Jhanwar
Vraj Iron and Steel Ltd GMP Today
The current GMP of the company is around Rs.60-63 which is around 29% of the Issue price . It is expected that investors can get a profit of 29% per lot if the stock lists at such GMP price.
Note: The GMP fluctuates on the basis of market demand.
Vraj Iron and Steel Ltd Other Details
| Event | Date/Details |
|---|---|
| Open Date | 26 June, 2024 |
| Close Date | 28 June, 2024 |
| Allotment Date | 01 July, 2024 |
| Listing Date | 03 July, 2024 |
| Issue Price | ₹195-207 per equity share |
| Face Value | ₹10 Per Equity Share |
| Market Lot | Retail: 72 Shares (₹14,904/-); S-HNI: 1,008 Shares (₹2,08,656/-); B-HNI: 4,896 Shares (₹10,13,472/-) |
| Listing at | BSE, NSE |
| Registrar | Bigshare Services Pvt Ltd |
| Retail Portion | 35% (Number of Retail Applications: 40,157 Approx); (Number of S-HNI Applications: 410 Approx); (Number of B-HNI Applications: 820 Approx) |
| Issue Size | 8,260,870 shares (aggregating up to ₹171.00 Cr) |
Disclaimer:
The recommendations made above are by market analysts and are not advised by either the author, nor FinTrend 24. The author, nor the brokerage firm nor FinTrend 24 would be liable for any losses caused as a result of decisions based on this write-up. FinTrend 24 advises users to consult with certified experts before making any investment decision.