VRAJ Iron and Steel Limited has announced the reaffirmation of its credit ratings by CARE Ratings Limited, maintaining stable outlook across its banking facilities. The rating agency has reviewed and reaffirmed the company's creditworthiness based on recent operational and financial performance data.

Credit Rating Details

CARE Ratings Limited has reaffirmed the credit ratings for VRAJ Iron and Steel's banking facilities totaling ₹70.00 crore. The rating review was conducted based on the company's operational and financial performance for FY25 (Audited) and H1FY26 (Unaudited).

Banking Arrangements

All banking facilities are provided by HDFC Bank Ltd. The long-term facilities of ₹40.00 crore comprise cash credit arrangements, while the long-term/short-term facilities worth ₹30.00 crore consist of Letter of Credit and Bank Guarantee (LC/BG) facilities.

Regulatory Compliance

The company has informed both BSE Limited and NSE Limited about the credit rating reaffirmation as required under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was signed by Priya Namdeo, Company Secretary and Compliance Officer, and submitted on January 02, 2026.

Rating Methodology

CARE Ratings Limited conducted the review based on recent developments including the company's operational and financial performance. The rating agency has reserved the right to undertake surveillance and review of the rating from time to time, with at least one such review required annually. The ratings reflect opinions on the likelihood of timely payment of obligations and do not constitute recommendations for sanctioning, renewing, or recalling bank facilities.

Vraj Iron and Steel Limited has announced an increase in its corporate guarantee for its associate company, Vraj Metaliks Private Limited. The guarantee has been raised from ₹25.00 crores to ₹35.00 crores in favor of HDFC Bank Limited.

Corporate Guarantee Enhancement Details

The company has increased its existing corporate guarantee for Vraj Metaliks Private Limited, with the enhanced guarantee amount and related details outlined below:

Promoter Interest and Transaction Nature

The disclosure reveals significant promoter involvement in the transaction. The promoter group, along with Mr. Vijay Anand Jhanwar, who serves as Promoter and Managing Director of Vraj Iron and Steel Limited, has expressed interest in this transaction.

The relationship structure shows that:

• Promoter entities are related to Vraj Iron and Steel Limited in the capacity of holding companies
• Vraj Metaliks Private Limited operates as an associate company of the listed entity
• The proposed transaction is being undertaken on an arm's length basis in the ordinary course of business

Financial Impact and Risk Assessment

The enhanced corporate guarantee represents a contingent liability for Vraj Iron and Steel Limited. According to the company's disclosure, this guarantee has been provided on behalf of the associate company, and at this point, there is no direct impact of this guarantee on the listed company's operations.

Regulatory Compliance

The announcement fulfills the requirements under Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided comprehensive disclosures regarding the nature of the guarantee, promoter interest, and potential impact on the listed entity.

The enhancement of the corporate guarantee from ₹25.00 crores to ₹35.00 crores reflects the company's continued support for its associate company's business expansion and operational requirements while maintaining regulatory compliance and transparency with stakeholders.