Vraj Iron and Steel IPO Sets Price Band, Aims to Raise ₹171 Crore

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Vraj Iron and Steel IPO Sets Price Band, Aims to Raise ₹171 Crore

Vraj Iron and Steel, a prominent player in the steel manufacturing sector, has announced the launch of its Initial Public Offering (IPO), scheduled to open on June 26. The IPO will offer fresh equity shares in the price band of ₹195 to ₹207 per share, with the company aiming to raise ₹171 crore.

The funds raised through the IPO will be utilized towards financing the company’s ambitious expansion project at its Bilaspur Plant, enhancing its manufacturing capacity significantly. Additionally, a portion of the proceeds will be allocated to repay or prepay borrowings from HDFC Bank used for capital expenditure, and for general corporate purposes.

Vraj Iron and Steel operates two manufacturing plants in Chhattisgarh, with plans to increase its aggregate installed capacity from 2,31,600 tons per annum (TPA) to 5,00,100 TPA across its production facilities. This expansion includes scaling up its captive power plant’s capacity from 5 MW to 20 MW, aimed at reducing energy costs and ensuring operational resilience.

The IPO will be conducted through the book-building process, with allocation percentages set at up to 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors, and a minimum of 35% for Retail Investors. Retail investors can participate with a minimum lot size of 72 shares, requiring an investment of ₹14,904.

Aryaman Financial Services Limited is acting as the book-running lead manager for the IPO, while Bigshare Services Pvt. Ltd. has been appointed as the registrar.

Investors and industry stakeholders are closely watching the developments at Vraj Iron and Steel, anticipating the company’s growth trajectory amidst its strategic expansion plans and the evolving market dynamics in the steel sector.

Stay tuned for more updates as Vraj Iron and Steel gears up for its IPO launch later this month, promising significant opportunities in the Indian capital markets.

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Ahmed Mainul

My self Ahmed Mainul Mondal, and I'm the founder of the hospitality career profile website. I'm writing blogs and news posts as per user preferences.

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