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.

Source:

VRAJ Iron and Steel Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, provides a comprehensive overview of the company's IPO proceeds utilization and project implementation status.

IPO Proceeds Utilization Overview

The company raised ₹171 crore through its Initial Public Offering conducted from June 26, 2024, to June 28, 2024. As of December 31, 2025, the monitoring report shows substantial utilization of the raised funds across various objectives.

Project Implementation Status

The expansion project at the Bilaspur plant has shown mixed progress across different components. The company successfully completed the prepayment of term loan borrowings as planned, utilizing the full allocated amount of ₹70.00 crore.

Plant Completion Timeline

Implementation Challenges

The monitoring report highlights specific challenges affecting project timelines. The captive power plant experienced a 2-month delay beyond its January 2025 target, completing in March 2025 due to delayed supply from suppliers. The billet plant implementation faces more significant delays, with the exact number of delay days not ascertainable as the project remains ongoing.

According to the Board of Directors' comments in the report, the billet plant delays stem from two primary factors:

• Delayed supply from suppliers
• Heavy rainfall in the operational region

Financial Management

The company demonstrates efficient fund management with minimal unutilized proceeds. The remaining ₹0.25 crore is maintained in a monitoring account with HDFC Bank, earning interest on the deposited amount. The actual IPO issue expenses amounted to ₹18.40 crore against the projected ₹18.70 crore, with the saved ₹0.30 crore redirected toward general corporate purposes as disclosed in the offer document.

Regulatory Compliance

CARE Ratings Limited, serving as the monitoring agency, confirmed no deviations from the objects stated in the offer document. The report indicates that all government and statutory approvals related to the project objectives have been obtained, including the Consent to Operate (CTO). The monitoring agency found no material deviations requiring shareholder approval and noted no changes in the means of finance for the disclosed objects.

The company maintains its focus on the iron and steel sector, with promoters including Vijay Anand Jhanwar, Kusum Lata Maheshwari, and several private limited companies in the group structure.