Vraj Iron & Steel
Mainboard₹171 Cr issue
+15.94%
Listing gain over issue price
Issue size
₹171 Cr
1 lot at cut-off
₹14,904
Lot size
72shares
Open
26 Jun 2024
Close
28 Jun 2024
Allotment
01 Jul 2024
Listing
03 Jul 2024
Listing performance
Issue price
₹207
Listed at
₹240
Listing-day close
₹252
Latest price
₹120.17
Close on 23 Oct 2026
Listing gain
+15.94%
Return since issue
-41.95%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jun 2024 – 28 Jun 2024
- Listing date
- 03 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹207 per share
- Lot size
- 72 shares
- Total issue size
- ₹171 Cr
- Market cap at offer price
- ₹683 Cr
- Promoter holding
- 99.99% → 74.95% pre-issue → post-issue
- ISIN
- INE0S2V01010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- First Floor, Plot No 63 & 66, Ph No 113, Mother Teresa Ward No.43, 3, Jalvihar Colony, Chhattisgarh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 24,78,259 | — | — |
Application size
Minimum 72 shares per lot, in multiples, at ₹207
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 72 | ₹14,904 |
| Retail (max) | 13 | 936 | ₹1,93,752 |
| S-HNI (min) | 14 | 1,008 | ₹2,08,656 |
| S-HNI (max) | 67 | 4,824 | ₹9,98,568 |
| B-HNI (min) | 68 | 4,896 | ₹10,13,472 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
24,78,259
Anchor portion
₹51.30 Cr
at ₹207 per share
Valuation and performance
Valuation at offer price
₹207 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 21.84 | 18.02 |
| P/E (×) | 9.48 | 11.49 |
| Price to book (×) | 2.73 | — |
| Market cap | — | ₹683 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.78%
- ROCE
- 25.34%
- Debt / equity
- 0.27
- PAT margin
- 3.61%
- NAV per share
- ₹75.84
- Price to book
- 2.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vraj Iron & Steel
Vraj Iron and Steel Limited is an Indian steel manufacturer incorporated in 2004 (originally as Phil Ispat Private Limited, renamed to Vraj Iron & Steel Limited in 2023). The company operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, across 52.93 acres. It manufactures intermediate products (sponge iron and MS billets) and finished products (TMT bars) using a combination of direct reduction and induction furnace processes. As of December 31, 2023, the company had an aggregate installed capacity of 231,600 MTPA with a captive power plant of 5 MW. The company generates revenue exclusively from the sale of steel products—sponge iron (52.58% of revenue in the nine months ended December 31, 2023), TMT bars (30.31%), and MS billets (13.99%). The company is currently implementing an expansion project at Bilaspur to increase total installed capacity to 500,100 MTPA and captive power plant capacity to 20 MW.
Company Analysis
from RHPVraj Iron and Steel Limited manufactures sponge iron, MS billets, and TMT bars, operating across the iron and steel industry in India.
Vraj Iron and Steel Limited is an Indian steel manufacturer incorporated in 2004 (originally as Phil Ispat Private Limited, renamed to Vraj Iron & Steel Limited in 2023). The company operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, across 52.93 acres. It manufactures intermediate products (sponge iron and MS billets) and finished products (TMT bars) using a combination of direct reduction and induction furnace processes. As of December 31, 2023, the company had an aggregate installed capacity of 231,600 MTPA with a captive power plant of 5 MW. The company generates revenue exclusively from the sale of steel products—sponge iron (52.58% of revenue in the nine months ended December 31, 2023), TMT bars (30.31%), and MS billets (13.99%). The company is currently implementing an expansion project at Bilaspur to increase total installed capacity to 500,100 MTPA and captive power plant capacity to 20 MW.
iron and steelmetals and miningmanufacturing
Objects of the Issue
- Repayment or prepayment of borrowings from HDFC Bank ₹700 million p.26
- Capital expenditure towards the Expansion Project at Bilaspur Plant ₹595 million p.26
- General Corporate Purposes [●] p.26
- Repayment or prepayment of borrowings from HDFC Bank obtained by our Company for the capital expenditure towards the Expansion Project at Bilaspur Plant ₹700 million p.109
- Capital expenditure towards the Expansion Project at Bilaspur Plant p.109
- General Corporate Purposes p.109
- Funding for Capital Expenditure towards the Expansion Project at Bilaspur Plant ₹1,295 million p.121
- General Corporate Purposes [●] million (not to exceed 25% of Gross Proceeds) p.122
- Funding capex for the expansion of manufacturing facilities (Sponge Iron, MS Billets capacity and Captive Power Plant at Bilaspur) p.207
- Repayment of borrowings for the expansion project p.207
- General corporate purposes
Issue Structure
- Total Issue
- Up to ₹1,710.00 million
- Fresh Issue
- Fresh Issue of up to [●] Equity Shares of face value of ₹10 each aggregating up to ₹1,710.00 million
- Offer for Sale
- Not Applicable
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹10 each
Business Model
The company manufactures steel products (sponge iron, MS billets, and TMT bars) and generates 100% of its revenue from the sale of these steel products to industrial customers through agents, traders, and direct supply. The company operates captive power plants to meet its electricity requirements. Manufacturing costs are driven by raw material inputs including iron ore, coal, and iron ore pellets procured from domestic suppliers.
Business Segments
Manufacturing of sponge iron, a metallic product produced through direct reduction of iron ore in the solid state
Manufacturing of MS (mild steel) billets, semi-finished casting products that require further processing into finished goods
Manufacturing of TMT (Thermo-Mechanically Treated) steel bars through hot rolling process where heated iron billets are continuously passed through rollers of decreasing diameters
Manufacturing of sponge iron at both Bilaspur and Raipur plants
Manufacturing of MS (Mild Steel) billets at both plants
Manufacturing of TMT (Thermo-Mechanically Treated) bars
Critical raw material for the steel industry; key raw material required to manufacture high quality steel; versatile and can be used in both induction as well as electric arc furnaces
Exceptional quality TMT steel bars manufactured through hot rolling process; mainly used for construction purpose; sold under brand 'Vraj'
Semi-finished casting product produced in a steel mill that needs to be further processed to transform into finished good; around or square cross-sectioned metal length created by continuous casting or hot rolling
By-products generated from the manufacturing process
Waste Heat Recovery Based power generation facility to meet power requirements of manufacturing plants
A critical raw material for the steel industry produced through direct reduction of iron ore/iron pellet in solid state, used in both induction and electric arc furnaces and as raw material for billets manufacturing
Semi-finished casting products produced in steel mill that need further processing to become finished goods, round or square cross-sectioned metal lengths created through continuous casting or hot rolling, used as raw material for TMT bars manufacturing
Thermo-mechanically treated steel bars of exceptional quality manufactured through hot rolling of heated iron billets through decreasing diameter rollers, followed by water cooling for mechanical treatment
Manufacturing and sale of sponge iron, MS billets, TMT bars and by-products
Generation of electricity for captive consumption
Direct reduction of iron ore to produce sponge iron
Manufacture of steel ingots and billets through induction furnaces
Rolling mill production of TMT bars and structural steel/rolled products
Manufacturing of sponge iron through existing plants with capacity of 2x100 TPD (60,000 TPA annual capacity) and planned expansion to 1,75,500 TPA
Manufacturing of thermo-mechanically treated steel bars using induction furnaces
SWOT Analysis
Strengths
- • Established manufacturing operations with vertical integration through captive power plants(p.25)
- • Strong historical capacity utilization demonstrating operational efficiency(p.51)
- • Diversified product portfolio across steel value chain(p.25)
- • Strategic location in resource-rich region with proximity to raw materials(p.36)
- • High capacity utilization rates demonstrate operational efficiency and market demand(p.53)
- • Strong financial performance with significant revenue and profit growth over three years(p.65)
- • Diversified product portfolio across steel segments serving multiple end-markets(p.65)
- • Established manufacturing footprint with two operational plants and expansion capacity(p.53)
- • Increasing capacity utilization of key products year-over-year(p.110)
- • Existing land availability eliminates additional land acquisition costs for Bilaspur expansion(p.110)
- • Established operational history and infrastructure at Bilaspur Plant(p.111)
- • Strategic location benefits for raw material sourcing(p.126)
- • Integrated manufacturing setup providing operational control and margin benefits(p.126)
- • Strategic location in mineral-rich Chhattisgarh with proximity to raw materials and customers(p.203)
- • Backward integration through captive power plant reducing energy costs(p.203)
- • Strong track record of financial growth with healthy CAGR across metrics(p.206)
- • Diversified product portfolio reducing dependence on single product(p.204)
- • Experienced promoter with deep industry knowledge and government connections(p.205)
- • Superior EBITDA and PAT margins compared to larger peers(p.206)
- • Strong working capital management and operational cash flows(p.206)
- • Rapid growth in high-margin TMT Bars product line(p.205)
- • Established presence in sponge iron manufacturing with two operational plants(p.269)
- • Integrated operations including captive power generation(p.269)
- • Strong financial position with improving profitability(p.266)
- • Significant equity stake in associate company Vraj Metaliks Private Limited(p.291)
- • Experienced and stable management team(p.246)
- • Established sponge iron production capacity(p.371)
- • Expansion project with increased capacity planned(p.371)
- • Strong financial position with growing net tangible assets(p.373)
- • Consistent operating profitability(p.373)
- • Growing monetary reserves for liquidity(p.373)
Weaknesses
- • Geographical concentration of all manufacturing operations in single region creates operational risk(p.36)
- • Heavy dependence on a limited customer base for majority of revenues(p.43)
- • Limited experience of majority of directors in managing publicly listed companies(p.42)
- • Lack of long-term customer contracts creates revenue uncertainty(p.42)
- • History of delays in statutory compliance with GST, EPF, and other payroll obligations(p.47)
- • Significant dependence on expansion project funding from IPO proceeds with no alternate arrangements(p.39)
- • Negative cash flows from operations in recent periods(p.38)
- • High inventory-to-revenue ratio indicating working capital challenges(p.55)
- • Significant contingent liabilities representing 26.32% of net worth(p.61)
- • Elevated employee attrition rates creating operational and recruitment risks(p.56)
- • Dependence on third-party suppliers without formal agreements creates supply chain vulnerability(p.55)
- • Complex litigation involving promoters in multiple jurisdictions affecting management attention(p.59)
- • Related party transactions representing material portion of business activity(p.62)
- • Fund requirements not appraised by financial institutions(p.109)
- • Exposure to cost estimate variations and project execution risks(p.109)
- • Dependence on external suppliers without binding agreements for equipment(p.119)
- • Limited installed capacity relative to industry leaders(p.201)
- • Significant debt levels for expansion project(p.207)
- • Reliance on few key customers(p.217)
- • Lower capacity utilization in certain product lines(p.216)
- • Dependence on few major customers for revenue(p.254)
- • Promoter group with overlapping business interests creating conflict risk(p.254)
- • Significant leverage from promoter guarantees creating contingent liabilities(p.254)
- • Reliance on related party transactions for raw materials and services(p.307)
- • No formal dividend policy in place(p.259)
- • Pending regulatory approvals for operations and expansion(p.371)
- • Pending trademark registrations(p.371)
- • No prior public issue experience(p.378)
- • Single manufacturing location concentration(p.371)
Opportunities
- • India's growing steel consumption and second-largest producer status with strong domestic demand(p.26)
- • Expansion project to significantly increase production capacity and product portfolio(p.40)
- • Government support through Steel Scrap Recycling Policy and National Steel Policy promoting circular economy(p.47)
- • Strong growth in construction and infrastructure sectors driving steel demand(p.26)
- • Government initiatives for green steel and renewable energy integration in steel production(p.48)
- • Expansion project to significantly increase production capacity across all product lines(p.53)
- • Growing steel demand from infrastructure and real estate sectors in India(p.73)
- • Vertical integration through captive power generation reducing operational costs(p.53)
- • Listing benefits including enhanced brand visibility and access to capital markets(p.104)
- • Expansion to increase aggregate installed capacity from 231,600 to 500,100 TPA(p.110)
- • Addition of 15 MW waste heat recovery power plant for cost reduction and energy independence(p.111)
- • Strong domestic steel demand driven by infrastructure investment and urbanization(p.152)
- • Government capital expenditure push supporting steel consumption growth(p.144)
- • Projected increase in domestic steel per capita consumption and long steel demand(p.153)
- • Strong projected growth in domestic steel demand(p.174)
- • Significant government infrastructure investment driving steel demand(p.175)
- • Expansion of manufacturing capacity to capture growing demand(p.207)
- • Penetration of regional markets with cost-efficient positioning(p.207)
- • Forward integration and value-added product manufacturing(p.204)
- • Government focus on ESG and sustainability in steel industry(p.174)
- • Expansion into value-added steel products (MS Billet and TMT Bars)(p.269)
- • Growth in sponge iron market driven by expanding steelmaking capacity(p.269)
- • Capital expansion projects underway to increase production capacity(p.290)
- • Leverage associate company's profitability to enhance consolidated earnings(p.291)
- • Significant capacity expansion project underway(p.371)
- • Addition of new induction furnace capability(p.371)
- • Multiple product offerings in iron and steel(p.371)
- • Access to capital markets through IPO(p.372)
Threats
- • Significant volatility in steel prices driven by global and domestic supply-demand dynamics(p.37)
- • Intense domestic competition from larger, better-capitalized competitors(p.48)
- • Price volatility and supply disruptions in key raw materials including iron ore and coal(p.50)
- • Dependence on limited number of raw material suppliers creating supply concentration risk(p.50)
- • Risk of power supply disruptions affecting manufacturing operations(p.51)
- • Global consolidation trends in steel industry threatening competitive position(p.48)
- • Implementation delays or cost overruns in expansion project could adversely impact growth(p.39)
- • Restrictive loan covenants limiting operational and expansion flexibility(p.52)
- • Global and domestic economic slowdown reducing steel demand and pricing pressure(p.72)
- • Raw material price volatility and supply chain disruptions impacting margins(p.72)
- • Reduction in import duties increasing foreign competition in domestic market(p.73)
- • Environmental and regulatory compliance costs and penalties(p.67)
- • Commodity price cyclicality affecting demand for steel products(p.66)
- • Coal supply availability and pricing through regulated fuel supply agreements with penalties(p.54)
- • Potential shortage or non-availability of critical utilities including electricity and water(p.68)
- • Volatility in raw material prices and availability(p.150)
- • Global economic slowdown affecting steel demand(p.150)
- • Trade barriers and tariff impositions impacting export competitiveness(p.150)
- • Environmental regulations and carbon emissions compliance costs(p.150)
- • Weak monsoon and agricultural production impacting rural demand(p.138)
- • Volatility in raw material prices, particularly coking coal(p.175)
- • Inland location creating logistics challenges(p.175)
- • Industry cyclicality affecting profitability during downturns(p.175)
- • Intense competition from large integrated steel manufacturers(p.217)
- • Global and geopolitical impacts on input costs(p.200)
- • Cyclical nature of steel and sponge iron industries affecting margins(p.299)
- • Exposure to commodity price volatility for raw materials(p.299)
- • Energy cost volatility impacting operational profitability(p.300)
- • Regulatory and compliance risks in steel manufacturing and environmental regulations(p.256)
- • Competition from established players in sponge iron manufacturing(p.257)
- • Foreign exchange and input price volatility impacting competitiveness(p.269)
- • Regulatory and environmental approval dependencies(p.371)
- • Complex regulatory compliance requirements for mining operations(p.371)
- • Power supply agreement dependencies(p.371)
- • Iron and steel sector cyclicality and competition(p.371)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Gopal Sponge and Power Private Limited | Promoter | 72.74% | [●] |
| V. A. Transport Private Limited | Promoter | 22.47% | [●] |
| Vijay Anand Jhanwar | Promoter | 4.01% | [●] |
| Kusum Lata Maheshwari | Promoter | 0.78% | [●] |
| Kirti Ispat Private Limited | Promoter | — | — |
| Bhinaswar Commercial Private Limited | Promoter | — | — |
| Utkal Ispat Private Limited | Promoter | — | — |
| Gopal Sponge and Power Private Limited | Promoter | 72.74% | — |
| Vijay Anand Jhanwar | Promoter | 4.01% | — |
| V.A. Transport Private Limited | Promoter | 22.47% | — |
| Kusum Lata Maheshwari | Promoter | 0.78% | — |
| Vijay Anand Jhanwar | Promoter | — | — |
| Gopal Sponge and Power Private Limited | Promoter/Holding Company | — | — |
| Vijay Anand Jhanwar | Promoter | 4.01% | — |
| Vijay Anand Jhanwar | Promoter | 4.01% | — |
| Kusum Lata Maheshwari | Promoter | 0.78% | — |
| Gopal Sponge and Power Private Limited | Promoter Group | 72.74% | — |
| V.A. Transport Private Limited | Promoter Group | 22.47% | — |
| Kirti Ispat Private Limited | Promoter Group | — | — |
| Bhinaswar Commercial Private Limited | Promoter Group | — | — |
| Utkal Ispat Private Limited | Promoter Group | — | — |
| Vijay Anand Jhanwar | Promoter | — | — |
Leadership
Vijay Anand Jhanwar · Chairman and Managing Director
Shriram Verma · CFO
Priya Namdeo · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Vraj Iron & Steel IPO FAQs
What is the lot size of Vraj Iron & Steel IPO?
The minimum lot size of Vraj Iron & Steel IPO is 72 shares. One lot costs ₹14,904 at the cut-off price.
When does Vraj Iron & Steel IPO open and close?
Vraj Iron & Steel IPO opened for subscription on 26 Jun 2024 and closed on 28 Jun 2024.
What is the listing date of Vraj Iron & Steel IPO?
Vraj Iron & Steel IPO listed on 03 Jul 2024.