{"id":38982,"date":"2024-06-26T09:58:05","date_gmt":"2024-06-26T04:28:05","guid":{"rendered":"https:\/\/flattrade.in\/kosh\/?p=38982"},"modified":"2024-06-26T09:58:05","modified_gmt":"2024-06-26T04:28:05","slug":"vraj-iron-and-steel-ipo","status":"publish","type":"post","link":"https:\/\/flattrade.in\/kosh\/vraj-iron-and-steel-ipo\/","title":{"rendered":"Vraj Iron and Steel IPO"},"content":{"rendered":"\t\t
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Vraj Iron and Steel IPO is a book-built issue of Rs 171.00 crores. The issue is entirely a fresh issue of 0.83 crore shares. The IPO opens for subscription on June 26, 2024, and closes on June 28, 2024.<\/span><\/p>

Further, the IPO price band is set at \u20b9195 to \u20b9207 per share, and the minimum lot size for an application is 72 Shares.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Company Summary<\/strong><\/span><\/p>

This Company is engaged in manufacturing Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company runs two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres.<\/span><\/p>

The company’s product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.<\/span><\/p>

As of December 31, 2023, the total installed capacity of the manufacturing plants was 231,600 tons per year, including intermediate and final products.<\/span><\/p>

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.<\/span><\/p>

As of December 31, 2023, they had a workforce of 531 employees & workers, comprising 296 permanent employees including 3 Directors, 9 employees at the Registered Office, 193 employees at the Raipur Plant and 91 employees at the Bilaspur Plant, and 235 contract workers.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Company Strengths<\/strong><\/span><\/p>

They have been able to grow the quantity sold, between Fiscal 2021 and Fiscal 2023, of TMT Bars at a CAGR of 78%\u00a0and Sponge Iron at a CAGR of 8%.<\/span><\/p>

The Company has a captive power plant with an installed capacity of 5MW which helps them to reduce energy costs. Additionally operating a captive power plant will decrease their exposure to disruptions to the electricity grid in times of power outages that can otherwise lead to costly production disruptions.<\/span><\/p>

Their\u00a0focus on operational and functional excellence has contributed to their track record of healthy financial\u00a0performance with total Income having grown at a CAGR of 33.4% between Fiscal 2021 and Fiscal 2023.<\/span><\/p>

EBITDA has grown at a CAGR of 67.2% between Fiscal 2021 to Fiscal 2023 and Profit After Tax at a CAGR of 121.7% between Fiscal 2021 and Fiscal 2023.<\/span><\/p>

For the nine months ended December 2023 and Fiscals 2023, 2022, and 2021, they have achieved a profit margin of 14.79%, 10.47%, 6.93%, and 3.78%, respectively, as per their Restated Consolidated Financial Statements.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Company Financials<\/strong><\/span><\/p>
Period Ended<\/b><\/strong><\/span><\/td>31 Dec 2023<\/b><\/strong><\/span><\/td>31 Mar 2023<\/b><\/strong><\/span><\/td>31 Mar 2022<\/b><\/strong><\/span><\/td>31 Mar 2021<\/b><\/strong><\/span><\/td><\/tr>
Assets<\/b><\/strong><\/span><\/td>253.05<\/span><\/td>191.54<\/span><\/td>150.77<\/span><\/td>126.33<\/span><\/td><\/tr>
Revenue<\/b><\/strong><\/span><\/td>304.81<\/span><\/td>517.42<\/span><\/td>414.38<\/span><\/td>290.93<\/span><\/td><\/tr>
Profit After Tax<\/b><\/strong><\/span><\/td>44.58<\/span><\/td>54.00<\/span><\/td>28.70<\/span><\/td>10.99<\/span><\/td><\/tr>
Net Worth<\/b><\/strong><\/span><\/td>187.50<\/span><\/td>140.92<\/span><\/td>87.14<\/span><\/td>57.79<\/span><\/td><\/tr>
Reserves and Surplus<\/b><\/strong><\/span><\/td>162.78<\/span><\/td>135.97<\/span><\/td>82.19<\/span><\/td>52.85<\/span><\/td><\/tr>
Total Borrowing<\/b><\/strong><\/span><\/td>49.30<\/span><\/td>22.98<\/span><\/td>42.51<\/span><\/td>45.78<\/span><\/td><\/tr>

Amount in \u20b9 Crore<\/span><\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Objectives of the IPO<\/strong><\/span><\/p>

The Company proposes to utilize the Net Proceeds in the following manner<\/span><\/p>