Vraj Iron and Steel IPO: Company files DRHP for fund raising of Rs 171 crore

Chhattisgarh-based Vraj Iron and Steel has filed its preliminary papers with the capital markets regulator SEBI to raise funds via initial public offering (l PO). The public issue consists of only a fresh issuance of shares worth Rs 171 crore and there will be no offer- for-sale (OFS) component. The company in consultation with the merchant banker may consider a fund-raising of Rs 34 crore in a pre- IPO placement before filing the red herring prospectus with the Registrar of Companies. The Gopal Sponge and Power, V A Transport, and Vijay Anand Jhanwar-promoted company will spend Rs 129.5 crore of the net fresh issue proceeds for repaying debts obtained for expansion project at Bilaspur plant; and capital expenditure towards the said Bilaspur plant's expansion project. The remaining offer proceeds will be used for general corporate purposes and issue expenses.