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The initial public offer (IPO) of Vraj Iron and Steel received 10,37,65,824 bids for shares as against 61,38,462 shares on offer, according to stock exchange data at 17:00 IST on Thursday (27 June 2024). The issue was subscribed 16.90 times.
The issue opened for bidding on Wednesday (26 June 2024) and it will close on Friday (28 June 2024). The price band of the IPO is fixed at Rs 195 to 207 per share. An investor can bid for a minimum of 72 equity shares and in multiples thereof.
The offer comprises only of fresh issue of equity shares up to 82.60 lakh equity shares.
The net proceeds from the fresh issue will be used to repay or prepay borrowings from HDFC Bank for Rs 70 crore capital expenditure towards expansion project of the Bilaspur plant and Rs 59.5 crore capital expenditure towards the expansion project of the Bilaspur plant. The balance is towards general corporate purposes.
Ahead of the IPO, Vraj Iron and Steel on Tuesday, 25 June 2024, raised Rs 51.29 crore from anchor investors. The board allotted 24.78 lakh shares at Rs 207 each to 6 anchor investors.
Incorporated in June 2004, Vraj Iron and Steel manufactures sponge iron, M.S. billets, and TMT bars under the brand Vraj. It runs two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres. As of March 2023, the total installed capacity of the manufacturing plants was 231,600 tons per year, including intermediate and final products.
The company currently has a production capacity of 57,600 TPA of MS Billets, which its rolling mills can use to manufacture TMT Bars with a production capacity of 54,000 TPA.
The firm reported a net profit of Rs 44.58 crore and total income of Rs 301.32 crore for the nine months ended on 31 December 2023.
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