Vraj Iron and Steel Limited has approved a proposal to establish a Greenfield Integrated Steel Plant in Chhattisgarh, entailing a capital investment of approximately ₹450 crore. The Board of Directors approved the takeover of land held by its promoter, M/s Gopal Sponge and Power Private Limited, in Village-Chapka, Tehsil-Bhanpuri, District-Bastar, along with necessary environmental and regulatory approvals. This strategic expansion aims to enhance manufacturing capacity and leverage the fiscal incentives offered under the state's industrial policy for the Bastar region.

Project Details and Capacity

The proposed expansion will be executed in the first stage, significantly boosting the company's production capabilities. The new facility will focus on core steel manufacturing and power generation to support long-term growth and operational efficiency.

New Production Capacity

Financials and Funding

The estimated cost for the project is ₹450 crore, inclusive of GST. The company plans to fund this investment through a mix of internal accruals, equity infusion, and debt. Specifically, the funding structure includes ₹150 crore from internal accruals and equity, while the remaining ₹300 crore will be raised through debt.

Strategic Rationale

The Board evaluated the steel industry outlook and identified strategic advantages in the Bastar region, including proximity to iron ore resources and lower logistics costs. The project is designed to meet growing market demand and strengthen the company's competitive position. The company expects to commission the project within 30 months from the date of the ground-breaking ceremony.

Vraj Iron and Steel Limited promoters, including Vijay Anand Jhanwar and Persons Acting in Concert (PACs), confirmed they hold 24,721,720 equity shares as of March 31, 2026, with no encumbrances reported during the financial year 2025-26. The disclosure, submitted to the stock exchanges, assures shareholders that the promoter group has not pledged or created any charge on these shares, directly or indirectly. The total holding remains stable, reflecting no changes in the encumbrance status compared to the previous period.

Vijay Anand Jhanwar, a promoter of the company, made the declaration on behalf of the other promoters and PACs in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was addressed to the Corporate Relation Department of BSE Limited and the Listing Department of NSE Limited on April 9, 2026. The submission included Annexure-A, detailing the specific shareholding of each promoter and group member.

Shareholding Details

The breakdown of the promoter and promoter group shareholding as of March 31, 2026, is detailed below. Gopal Sponge and Power Private Limited holds the majority of the shares within the group.

Corporate Actions

The filing notes a corporate action affecting the shareholding structure. Pursuant to an order from the Regional Director, South East Region Hyderabad dated March 18, 2026, VA Transport Private Limited, a promoter entity previously holding 5,555,500 equity shares, merged with Gopal Sponge and Power Private Limited. Consequently, these shares were vested in Gopal Sponge and Power Private Limited effective March 27, 2026, via an off-market inter-se transfer executed through a Depository Instruction Slip (DIS).

Additionally, Kirti Ispat Private Limited and Utkal Ispat Private Limited, which held no shares but were members of the promoter group, were also merged with Gopal Sponge and Power Private Limited effective March 18, 2026, under the same regional director's order. City Mall Developers Private Limited, a subsidiary of Gopal Sponge and Power Private Limited, qualifies as part of the "Promoter Group" by virtue of this relationship. These consolidations have resulted in the current distribution of shares among the promoter group.