Vraj iron and steel Limited has announced a major capacity expansion with the establishment of a new rolling mill at its Bilaspur plant. The Board of Directors approved this strategic initiative on February 24, 2026, marking a significant step in the company's growth trajectory.

Project Overview

The new rolling mill will manufacture TMT bars with an installed capacity of 150000 tons per annum. The project carries an estimated cost of Rs 35 crores plus applicable GST, with the company noting that project costs may vary up to 15% from the estimated amount.

Current Operations and Capacity Utilization

The company currently operates a facility at Raipur with an existing capacity of 54000 tons per annum. The current capacity utilization stands at 67.22% at the existing Raipur unit, indicating room for growth and the strategic timing of this expansion.

Financing Strategy

The company has outlined a clear financing approach for the project. The expansion will be funded primarily through internal accruals, demonstrating the company's strong cash position. If additional funding is required, VRAJ Iron and Steel Limited will utilize short-term unsecured loans from promoters up to Rs 10 crores at an interest rate of 7.5% per annum.

Strategic Rationale

The company has identified several key benefits from this expansion initiative:

• Enhanced Production Capacity: Significant increase in finished steel products manufacturing capability
• Operational Efficiency: Improved overall operational performance across facilities
• Revenue Growth: Expected increase in revenue and profitability from expanded operations
• Market Position: Strengthened competitive position in the TMT segment

The project represents a substantial investment in the company's manufacturing infrastructure and positions VRAJ Iron and Steel Limited for enhanced market presence in the steel industry. The expansion is scheduled for completion during Financial Year 2026-27, adding significant capacity to the company's existing operations.

Vraj Iron and Steel Limited has announced that CARE Ratings Limited has assigned and reaffirmed credit ratings on the company's bank facilities totaling ₹128.00 crore. The rating actions were communicated to stock exchanges on February 19, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings has provided comprehensive rating coverage across the company's banking facilities with HDFC Bank Limited. The rating actions include both new assignments and reaffirmations of existing ratings.

Facility Structure and Terms

The rated facilities are structured across different categories to meet the company's operational and capital requirements. The term loan facility of ₹38.00 crore from HDFC Bank Limited is repayable in 96 monthly installments ending in January 2034. The cash credit facility provides ₹40.00 crore in working capital support, while the LC/BG facility offers ₹50.00 crore for trade finance requirements.

Rating Enhancement

A notable development in the rating action is the enhancement of the LC/BG facility limit from ₹30.00 crore to ₹50.00 crore, representing a ₹20.00 crore increase in the company's trade finance capacity. This enhancement was accompanied by a reaffirmation of the CARE A- stable/CARE A2+ rating.

Banking Relationship

All rated facilities are provided by HDFC Bank Limited, indicating a consolidated banking relationship. The facilities span across term loans for capital expenditure, cash credit for working capital needs, and LC/BG facilities for trade finance operations.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, by informing both BSE Limited and NSE Limited about the rating actions. The communication was signed by Company Secretary and Compliance Officer Priya Namdeo.

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