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IPO listed on 3 Jul'24

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Vraj Iron and Steel Ltd

Minimum Investment

14,904 / 72 shares

Grey market premium

75 (36% premium)

Issue price


Listing price


Listing day %



Listing on

July 3, 2024

Our Verdict:


  • Vraj Iron & Steel Ltd (VSIL) has exhibited impressive growth in revenue and earnings over the past three years. Moreover, its net debt/EBITDA is at a comfortable 0.4x, supported by healthy return ratios.
  • In terms of valuation, the IPO is attractively priced with a Price-to-Earnings (P/E) ratio of 11.5x, based on projected FY24 earnings post-IPO.
  • Given the current challenges in the steel industry and shrinking steel spreads, we do not expect significant capital appreciation in the short-term apart from listing gains. Nonetheless, with the government's ongoing emphasis on infrastructure development, the demand for steel in India continues to be strong.
  • Considering VSIL’s strong growth trajectory and reasonable valuations, it is recommended for investors to subscribe to the IPO for a medium to long-term investment horizon.

About the company

Founded in

16 Jun'04

Managing director

Vijay Jhanwar

  • VISL specializes in the production of sponge iron, MS billets, and TMT bars under the ‘Vraj’ brand, along with by-products like dolochar, pellet, and pig iron. These products cater to various industrial customers and end-users, and are sold both directly and via brokers and dealers.
  • VISL operates two manufacturing plants located in Raipur and Bilaspur, Chhattisgarh, with a total installed capacity of 2,31,600 TPA. Its Raipur facility also has a captive power plant of 5 MW capacity. The firm now plans to double the total capacity to 5,00,100 TPA.


  • Exceptional Financial Growth: VISL has demonstrated remarkable financial performance, achieving a Compound Annual Growth Rate (CAGR) of 33% in operational revenue from FY21 to FY23. During this period, EBITDA surged by 67% and net profit shot up by 122%.
  • Enhanced Profit Margins: VISL's EBITDA margin significantly increased from 10.01% in FY21 to 15.77% in FY23, and further to 21.61% by 9MFY24. Similarly, the net profit margin rose from 3.78% to 10.47% during the same timeframe, climbing to 14.79% by 9MFY24.
  • Strong Return Ratios: VISL boasts robust return metrics, with a Return on Equity of 38% and Return on Capital Employed of 45% as of FY23.


  • Cash Flow Issues: VISL experienced negative cash flows from operations in 9MFY24, alongside negative cash flows from investing and financing activities over the past three years. Persistent negative cash flows may negatively impact the firm’s operations and financial health.
  • Intense Market Competition: The Indian steel market features fierce competition from a range of domestic and multinational firms, including prominent competitors like Tata Steel, JSW Steel, SAIL, Jindal Steel & Power, Godawari Power & Ispat, and Sarda Energy & Minerals.
  • Legal Challenges: VISL, along with its Promoters, Directors, and Group Companies, are involved in various legal proceedings. Any unfavourable rulings in these proceedings could significantly affect its business and operational results.
  • Significant Contingent Liabilities: As of December 31, 2023, VISL’s contingent liabilities totalled Rs 49.35 crore, approximately 26% of its net worth. These liabilities, which are not accounted for in the firm’s financial statements, could have a severe impact on its financial stability if they materialize.

Issue details

Issue type


Issue size

171 crore

Fresh Issue

171 crore



Price range

₹ 195 - 207

Lot size


Issue Objective

VISL plans to utilise the net proceeds from the issue for the following purposes:

  • Financing capital expenditures for the expansion project at the Bilaspur plant;
  • Repaying or prepaying some of the existing loans; and
  • General corporate purposes.



Bidding open

26 Jun'24


Bidding close

28 Jun'24


Allotment date

1 Jul'24


Refund date

2 Jul'24



3 Jul'24

IPO Reservations

Qualified institutional buyers


Non-institutional investors


Retail individual investors



Read the Offer Document

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© 2024 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)

This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.

Liquide Solutions Private Limited makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.


Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.


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SEBI Registration Details

Name: Liquide Solutions Private Limited | RA No: INH000009816 | Reg. Type: Corporate | Validity: Perpetual  

Associated SEBI regional office: SEBI, Jeevan Mangal Building, Hayes Rd, off, Residency Rd, Shanthala Nagar, Ashok Nagar, Bengaluru, Karnataka 560025

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