IPO for VMS TMT Ltd Open Today
IPO for VMS TMT Ltd
The IPO for VMS TMT Ltd. opened today, September 17, 2025, with the company aiming to raise ₹148.50 crore through a fresh issue of 1.50 crore shares. The IPO will remain open for subscription until September 19, 2025. The company has set a price band of ₹94 to ₹99 per share, with a minimum lot size of 150 shares.
Company Overview
VMS TMT Ltd. is an Ahmedabad-based steel company primarily engaged in the manufacturing of Thermo Mechanically Treated (TMT) bars, a key component in the construction industry. The company also sells billets, binding wires, and scrap. VMS TMT operates a manufacturing facility in Bhayla village, Gujarat, and has a retail license agreement with Kamdhenu Limited, allowing it to market its products under the "Kamdhenu NXT" brand in Gujarat. The company's revenue is heavily concentrated in the Gujarat market, which accounted for over 98% of its sales in the last fiscal year.
Financials and IPO Details
The IPO is entirely a fresh issue, with the proceeds intended to be used for repayment or prepayment of certain borrowings (₹115 crore) and for general corporate purposes. This move is aimed at reducing the company's high debt-to-equity ratio.
Here are the key financial and IPO details:
- Total Issue Size: ₹148.50 crore
- Price Band: ₹94 to ₹99 per share
- Lot Size: 150 shares
- Minimum Investment (Retail): ₹14,850 (at the upper price band)
- Listing: BSE and NSE
- Tentative Listing Date: September 24, 2025
While the company has seen an improvement in its profitability, with profit after tax rising from ₹4.20 crore in FY23 to ₹15.42 crore in FY25, its revenue has declined in the most recent fiscal years.
Subscription Status and Market Outlook
On its first day, the VMS TMT IPO has been well-received by investors. The issue was subscribed over 2.80 times, with strong demand from all investor categories. The Grey Market Premium (GMP) for VMS TMT shares has also been positive, indicating a potential listing gain. However, investors should be aware that GMP is an unofficial indicator and can be volatile.
Analysts have noted the company's strong brand association with Kamdhenu, its backward integration, and its focused regional presence as key strengths. However, they also point to the high debt levels and concentrated geographic market as potential risks. While the IPO is seen as aggressively priced based on its valuations compared to peers, some analysts recommend it for well-informed, long-term investors.
