Vraj Iron and Steel to raise Rs 171 crore through IPO

Vraj Iron and Steel is set to raise Rs 171 crore through its initial public offering (IPO), which opens for public subscription on June 26. The three-day IPO will conclude on June 28, with bidding for anchor investors opening a day earlier on June 25, as stated in the red herring prospectus (RHP).

The Raipur-based company will use the proceeds from the IPO for an expansion project at its Bilaspur facility and for general corporate purposes. Vraj Iron and Steel manufactures sponge iron, MS billets, and TMT bars, operating through two manufacturing plants located in Raipur and Bilaspur in Chhattisgarh.

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Following the expansion, the company expects to increase its aggregate installed capacity from 231,600 tonnes per annum (TPA) to 500,100 TPA. Additionally, it plans to boost the capacity of its captive power plants from 5 MW to 20 MW.

Aryaman Financial Services is the sole book-running lead manager for the IPO, while Bigshare Services is the registrar. The equity shares of Vraj Iron and Steel are proposed to be listed on both NSE and BSE.