The ₹171-crore initial public offering from the Raipur-based Vraj Iron and Steel will open today and close on June 28 (Friday). The company has pegged the price band at ₹195-207. The issue is entirely fresh. The lot size is 72 equity shares and in multiples of 72 thereafter.
The company will use the IPO proceeds for expansion projects at the Bilaspur facility and general corporate purposes.
Vraj Iron and Steel has set aside a 15 per cent of the issue to non-institutional institutional investors (NII), up to 50 per cent to qualified institutional buyers (QIB), and 35 per cent to retail investors.
Vraj Iron and Steel is into manufacturing sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars. It operates through two manufacturing plants in Chhattisgarh, Raipur and Bilaspur. After implementation of the expansion project, the company expects to increase its aggregate installed capacity from 2,31,600 tonne per annum (TPA) to 500,100 TPA and captive power plants’ aggregate installed capacity from 5 MW to 20 MW, the RHP noted.
As part of the IPO, Vraj Iron and Steel on Tuesday raised ₹51.30 crore from anchor investors by allotting 24,78,259 shares to six anchor investors at ₹207 apiece. Those who have been allocated shares were Volrado Venture Partners Fund IV, Capri Global Housing Finance, Ashika Global Securities, Rajasthan Global Securities, Leading Light Fund VCC – The Triumph Fund and Astorne Capital VCC-Arven.
Aryaman Financial Services is the sole book-running lead manager, while Bigshare Services is the registrar for the IPO. The company’s equity shares will be listed on the NSE and BSE.