Vraj Iron and Steel IPO To Close On 27 June; Issue Size Rs 171 Cr
Retail investors can bid for the maximum of 13 lots, while for the 1 lot of 72 shares, the minimum investment required is Rs 14,904
Vraj Iron and Steel initial public offering (IPO) is scheduled to close on 28 June which intends to raise Rs 171 crore from the public market.
The IPO consists exclusively of fresh issues of up to Rs 171 crore with a price band fixed at Rs 195 to 207 per equity share.
Vraj Iron and Steel IPO opened on 26 June and scheduled to close on 28 June followed by allotment on 01 July. Subsequently, the IPO will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 03 July.
Retail investors can bid for the maximum of 13 lots, while for the 1 lot of 72 shares, the minimum investment required is Rs 14,904.
Aryaman Financial Services is the book running lead managers and Bigshare Services is the registrar to the offer.
Analysts Advice
“Vraj Iron and Steel is rapidly expanding to keep up with the growing demand for its goods. All expansion plans should be operational starting in the first quarter of FY26. The issue appears reasonably priced, based on the FY24 annualised earnings. We expect a listing at around Rs 280 to 290 per share, resulting in a listing gain of around 35 per cent,” said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.
“The company is aiming to be a cost-efficient steel manufacturer and penetrate deeper into the regional market to capture a higher share of the existing market. We, therefore, have a positive view on the company and advise investors to ‘Subscribe’ to the issue from a medium to long term perspective,” said Parth Shah, Research Analyst, StoxBox.
IPO Objectives
Company intends to utilise the net proceeds of Rs 170 crore towards the funding of capital expenditure of expansion project at Bilaspur plant. Additionally, the funds will also be used for the repayment of borrowing obtained from the HDFC Bank for the same.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
Stanley holds the fourth position in terms of revenue in the home furniture segment in India for Fiscal 2022.
The firm registered revenue of Rs 517 crore in FY23, compared to Rs 414 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 54 crore in FY23 compared to Rs 28.7 crore in FY22.
Overall, revenue and PAT increased by 34.87 cent and 88.12 per cent respectively.
