Vraj Iron and Steel, based in Chhattisgarh, has set a price band of Rs 195-207 per share for its upcoming initial public offering (IPO). The IPO, valued at Rs 171 crore, will open for subscription on June 26, with the anchor book opening on June 25 and closing on June 28.
The company, known for manufacturing sponge iron, MS billets, and TMT bars, plans to utilize Rs 129.5 crore from the net proceeds of the IPO for expanding its Bilaspur plant. The remaining funds will be allocated for general corporate purposes. Currently operating from Raipur and Bilaspur in Chhattisgarh, Vraj Iron has an installed capacity of 2,31,600 tons per annum (TPA).
The expansion project aims to increase the company’s aggregate installed capacity to 5,00,100 TPA and its captive power plant capacity from 5 MW to 20 MW. According to Vraj Iron’s prospectus, the expansion of the sponge iron and captive power plants is expected to be operational by Q4 of FY25, while MS billets are targeted for Q1 of FY26.
Financially, Vraj Iron reported robust performance with an 88.1 percent year-on-year growth in net profit, reaching Rs 54 crore for FY23. Its revenue from operations grew by 24.5 percent to Rs 515.7 crore compared to the previous year. Trading of its equity shares is set to commence on July 3 post-IPO.
