Ahead of IPO, Vraj Iron and Steel pockets Rs 51 cr from anchor investors

Vraj Iron and Steel on Tuesday said it has raised a little over Rs 51 crore from anchor investors a day before its initial share sale opening for public subscription.

Those who have been allocated shares are -- 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, according to a circular uploaded on the BSE website.

Vraj Iron and Steel has allotted 24,78,259 equity shares to six anchor investors at Rs 207 apiece, aggregating the transaction size to Rs 51.30 crore, it added.

 

The Rs 171-crore initial public offering (IPO) is entirely a fresh issue of equity shares with no offer-for-sale component.

Shares will be available for public subscription in the range of Rs 195 to Rs 207 per scrip during June 26-28.

The company will use the IPO proceeds for expansion projects at the Bilaspur facility and general corporate purposes.

Raipur-based 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 at Raipur and Bilaspur in Chhattisgarh.

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.

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