Chhattisgarh-based Vraj Iron and Steel has decided to open its Rs 171-crore initial public offering for subscription on June 26. The price band will be announced in coming couple of days.The public issue, which comprises only a fresh issue with no offer-for-sale component, will close on June 28. The anchor book of the issue will be opened for a day on June 25.
Vraj Iron that manufactures sponge iron, MS billets, and TMT bars will spend Rs 129.5 crore out of the net fresh issue proceeds for expansion project at Bilaspur plant, and the remaining for general corporate purposes.
Currently, the company operates through its two manufacturing plants at Raipur and Bilaspur in Chhattisgarh, with having an installed capacity of 2,31,600 tons per annum (TPA). Its manufacturing plant at Raipur includes a captive power plant with capacity of 5 MW.
Further, it is expected to increase its aggregate installed capacity from 2,31,600 TPA to 5,00,100 TPA and captive power plants capacity from 5 MW to 20 MW.
The proposed expansion of sponge iron and captive power plant are expected to become operational in Q4 of FY25 whereas MS billets is expected to become operational in Q1 of FY26, Vraj said in its prospectus.
On the financials front, Vraj Iron recorded a 88.1 percent on-year growth in net profit at Rs 54 crore for the year ended March FY23 on healthy operating numbers. Revenue from operations for the year grew by 24.5 percent to Rs 515.7 crore compared to previous year.
Net profit for the nine months period ended December FY24 stood at Rs 44.58 crore on revenue of Rs 301.3 crore. The TMT bars maker will finalise the basis of allotment of IPO shares by July 1 and will credit its equity shares to demat accounts of successful investors by July 2.
The trading in its equity shares will commence on the bourses effective July 3.Aryaman Financial Services is the sole book running lead manager to the issue, while Bigshare Services is the registrar to the offer.
