About Company

• The company was incorporated in 2004 as ‘Phil Ispat Pvt. Ltd and the name was subsequently changed to ‘Vraj Iron & Steel Ltd’, in 2023. The company is engaged in the manufacturing of Sponge Iron, M.S. Billets, and TMT bars under the brand VRAJ.
• The company’s product offerings such as Sponge Iron, TMT Bar, MS Billets and by-products Dolochar, Pellet and Pig Iron cater to industrial customers as well as end-users.
• The company operates 2 integrated manufacturing plants located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres. The company’s current aggregate installed capacity of intermediate and final products stands at 2,31,600 TPA and the company is in the process of increasing the said capacity to 5,00,100 TPA. The proposed expansion of Sponge Iron plant is expected to be operational in Q4FY25 while MS Billets is expected to become operational in Q1FY26.
• Further, the company also has a captive power plant with a capacity of 5 MW which the company plans to increase to 20 MW by Q4FY25.
• The company’s integrated manufacturing plants are strategically located at Bilaspur and Raipur within the mineral rich State of Chhattisgarh and in proximity to the mineral belt in eastern India. The plant’s location close to raw material suppliers and also the end users, aids the company to lower the transportation costs and logistics management, thereby by improving operating margins.
• The company’s main products are Sponge Iron, TMT Bar and MS Billets which accounted for 96.88% 97.01%, 95.31% and 96.40% of total revenue from operations for period ended December 31, 2023, Fiscals 2023, 2022 and 2021 respectively. The diversified product range has resulted in a diversified product mix, which has reduced the dependency on a particular product and de-risked the revenue streams.
• The company’s total Income grew at a CAGR of 33.4%, EBITDA grew at a CAGR of 67.2% and Profit After Tax grew at a CAGR of 121.7% during Fiscal 2021 and Fiscal 2023. For 9 months ending December 31,2023, the company reported total income of ? 304.88 Cr, EBITDA of ? 65.10 Cr, EBITDA margins of 21.61% and PAT of ? 44.58 Cr. The company’s PAT margins improved from 3.78% in Fiscal 2021 to 38.32% in Fiscal 2023.

Strengths

Competitive Strength 

• Integrated and well-established manufacturing setup
• Manufacturing plants are strategically located, supported by robust architecture, leading to cost efficiencies and a stable supply chain
• Quantity and Average price of Coal procured by the Company
• Diversified product mix with strong focus on value added products
• Experienced Promoters, Board and management team
• Consistent track record of growth and financial performance

 Business Strategies 

• Expansion of manufacturing facilities
• Reduce Debt Levels and improve Debt to Equity Ratio
• Strengthen the customer base by growing existing customer business and acquiring new customers
• Focus on operational efficiencies to improve returns

Company Promoters

Company Financials

Vraj Iron and Steel Limited's revenue increased by 24.87% and profit after tax (PAT) rose by 88.12% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

The company proposes to utilise the Net Proceeds in the following manner.

• 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.
• General Corporate Purposes.