The IPO for Vraj Iron & Steel, a company based in Chhattisgarh, has begun accepting subscriptions starting today, June 26, and will remain open for investment until next Friday, June 28.

The price range for this offering has been set between Rs 195 and Rs 207 per share, each with a face value of Rs 10. Notably, the stock is already trading at a premium in the grey market from the outset. Here’s everything you need to know about the Vraj Iron & Steel IPO.

 

Operating under the brand name Vraj, the company manufactures sponge iron, MS billets, and TMT bars. It has two plants located in Raipur and Bilaspur, Chhattisgarh, covering a total of 52.93 acres. The Raipur plant also features a captive power plant with an installed capacity of 5 MW. Currently, Vraj Iron & Steel is expanding its manufacturing facilities and captive power plant.

This expansion is expected to boost the combined installed capacity of these facilities, including both intermediate and final products, from 231,600 TPA to 500,100 TPA. Additionally, the capacity of the captive power plant will increase from 5 MW to 20 MW.

The company’s product range, which includes sponge iron, TMT bars, MS billets, and by-products like dolochar, pellets, and pig iron, caters to both industrial and end-user customers.

 

The promoters of Vraj Iron & Steel are Vijay Anand Jhanwar, V.A. Transport Private Limited, and Gopal Sponge & Power Private Limited. Between March 31, 2022, and March 31, 2023, Vraj Iron & Steel Limited saw its net profit (PAT) increase by 88.12%, while its revenue grew by 24.87%. The IPO for Vraj Iron & Steel opened for subscription today, Wednesday, June 26, and will remain open until next Friday, June 28.

 

For the Vraj Iron & Steel IPO, the price band for a share with a face value of Rs 10 has been set between Rs 195 and Rs 207. The minimum lot size for this IPO is 72 equity shares, with investments above this amount required to be in multiples of 72 shares.

On Friday morning, there was significant demand for Vraj Iron & Steel in the grey market. Assuming the issue price is at the upper limit of Rs 207, the shares were trading at Rs 282 in the grey market, indicating a profit of Rs 75 per share. This translates to a premium of 36.23%.