Jun 26, 2024
By: Sourabh Jain
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Raipur-based Vraj Iron and Steel's initial public offering (IPO) opened on Wednesday, June 26, and will close on Friday, June 28.
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Vraj Iron and Steel has fixed a price band of ₹195-₹207 per share for its public issue.
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Vraj Iron and Steel is a Raipur-based manufacturer of sponge iron, M.S. billets, and TMT bars.
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Vraj Iron and Steel is looking to raise ₹171 crore from the current IPO. This is a completely fresh issue of ₹171 crore and there is no offer for sale (OFS) component.
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Ahead of the IPO, the company has received an investment of ₹51.30 crore from institutional investors.
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Investors can bid for a minimum of 72 shares and in multiples of 72 shares thereafter.
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The company, founded in 2004 currently operates two manufacturing plants in Raipur and Bilaspur. The total installed capacity of the manufacturing plants is 231,600 tons per year.
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The company’s income was ₹517.42 crore in FY23, down from ₹414.38 crore in FY22. The company reported a profit of ₹54 crore in FY23, up from ₹28.70 crore profit reported in FY22.
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The company’s two manufacturing plants are located in Chhattisgarh. The company is in the process of expanding its Bilaspur plant and operational risks might have an adverse impact.
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Fluctuations in steel prices pose a major risk to the company’s profitability. Price volatility may result in operational challenges.
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