The Chhattisgarh-based Vraj Iron and Steel Limited has filed the draft paper with the Securities and Exchanges Board of India (SEBI) to launch its Initial Public Offering (IPO). According to the DRHP published on SEBI’s website on January 02, 2024, Vraj Iron and Steel IPO comprises of a fresh issue of equity shares worth Rs 171 crore. There will be no offer-for-sale component in the offering. The document also notes that the company is considering a pre-IPO placement to raise Rs 34 crore.
The company plans to utilise about Rs 129.5 crore from the net proceeds of the issue towards repaying debts it incurred for the expansion of its Bilaspur plant and to meet further capital demand for the expansion of the project. The remaining of the funds will be used for general corporate expenses.
The face value of the equity shares is Rs 10 each and the issue price details will be determined through a book-building process that will be notified in due time before the launch of the IPO.
Aryaman Financial Services Limited is the book running lead manager and Bigshare Services Private Limited is the registrar for the initial public offering.
Vraj Iron and Steel Limited is in the business of power and manufacturing sponge iron, M S Billets and TMT bars under its brand name ‘Vraj’ and current has two manufacturing units at Bilaspur and Raipur.
The company currently has a total installed manufacturing capacity of 2.31 lakh tons per annum which it plans to increase to 5 lakh tons per annum. The company also plans to increase the capacity at its Raipur plant from 5MW to 20MW. The company aims to make these expansion plans operational in the financial year 2024-25.
Vraj Iron and Steel Limited had posted at net profit of Rs 54 crore in FY23 on a revenue of Rs 515.7 crore. In FY22, the company’s net profit stood at Rs 28.7 crore on a revenue of Rs 414 crore.
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