Vraj Iron and Steel Limited IPO

About Vraj Iron and Steel Limited

Incorporated in June 2004, Vraj Iron and Steel Limited is a prominent manufacturer of Sponge Iron, M.S. Billets, and TMT bars under the brand name Vraj. The company operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, spanning a total area of 52.93 acres. As of March 31, 2023, these plants have a combined installed capacity of 231,600 tons per year, encompassing both intermediate and final products.

Vraj Iron and Steel Limited boasts a production capacity of 57,600 tons per annum (TPA) for MS Billets. These billets are further processed in the company's rolling mills to produce TMT Bars, with a production capacity of 54,000 TPA. The company's diverse product portfolio includes Sponge Iron, TMT Bars, MS Billets, and by-products such as Dolochar, Pellets, and Pig Iron, catering to a wide range of industrial customers and end-users.

The Raipur Plant has achieved the prestigious Environmental Management System Certification under the ISO 14001:2015 standard, demonstrating the company's commitment to sustainable and environmentally responsible practices.

As of June 30, 2023, Vraj Iron and Steel Limited employs a workforce of 533 individuals, comprising 298 permanent employees and 235 contract workers. The distribution includes 7 employees at the Registered Office, 200 at the Raipur Plant, and 87 at the Bilaspur Plant. This skilled and dedicated workforce drives the company's operations and growth.

Industry Outlook

1. India's crude steel output reached 125.32 MT in FY23, with finished steel production at 121.29 MT, making it the world's second-largest producer.
2. Steel production in India is projected to grow 4-7% to 123-127 MT in FY24, driven by rising domestic demand and organic capacity expansion.

Vraj Iron and Steel Limited IPO Objectives

The company plans to allocate the net proceeds from the issue for the following purposes:

1. Funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plant:
   • Repayment or prepayment of borrowings from HDFC Bank obtained by the company for the capital expenditure towards the “Expansion Project” at Bilaspur Plant; and
   • Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
2. General Corporate Purposes.

Peer Details

The companies considered by Vraj Iron and Steel Limited as its peers include:

1. Godawari Power and Ispat Limited
2. Sarda Energy and Minerals Limited
3. Shyam Metalics and Energy Limited

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Contact Details of Vraj Iron and Steel Limited

Registered office: First Floor, Plot No 63 & 66, Ph No 113, Mother Teresa Ward No. 43, Jalvihar Colony, Raipur, Chhattisgarh, India, 492001.

Phone: +91-771-4059002

E-mail: info@vrajtmt.in