VMS TMT IPO: The initial public offering (IPO) of TMT bars manufacturer VMS TMT is set to open for public subscription on Wednesday, September 17 and will remain open until Friday, September 19.
The issue is witnessing decent demand in the grey market, as the latest grey market premium indicates the stock could be listed at a premium of over 20 per cent.
The ₹148.50 crore mainboard IPO, with a price band set at ₹94 to ₹99 per share, is entirely a fresh issue of 1.5 crore shares.
After the subscription window ends on Friday, the share allotment may be finalised on Monday, September 22, the next business day. Successful bidders will likely receive the company’s shares in their demat accounts on Tuesday, September 23, while those who fail to get the allotment will receive the refunds on the same day.
The stock will list on the BSE and the NSE on Wednesday, September 24.
VMS TMT IPO: 10 key things you must know
1. VMS TMT IPO GMP
According to grey market sources, the last GMP of the VMS TMT IPO was ₹23. Considering the upper price band of the issue at ₹99 per share, the estimated listing price of VMS TMT shares is ₹122, a premium of 23 per cent.
2. VMS TMT IPO date
The mainboard IPO will open for subscription on Wednesday, September 17, and conclude on Friday, September 19.
3. VMS TMT IPO size
The issue has no offer for sale (OFS) component and is entirely a fresh issue of 1.5 crore shares to raise ₹148.50 crore.
4. VMS TMT IPO reservation
The biggest share of the issue, as much as 50 per cent, is reserved for retail investors, while QIBs (qualified institutional buyers) have been offered a 30 per cent share. The remaining 20 per cent is reserved for NIIs (non-institutional investors).
5. VMS TMT IPO lot size
The minimum lot size for an application is 150 Shares. With the issue’s upper price band at ₹99, the minimum amount of investment required by retail investors is ₹14,850. Retail investors can bid for a maximum of 13 lots for a total of 1,950 shares.
6. VMS TMT IPO book-running lead managers and registrar
Arihant Capital Markets is the book-running lead manager of the IPO, while KFin Technologies is the registrar for the issue.
7. VMS TMT IPO object
According to the company’s RHP, the company wants to use the net proceeds of the issue for the repayment or prepayment, in full or part, of all or a portion of certain borrowings, and for general corporate purposes.
8. VMS TMT business overview
According to the company’s RHP, the company manufactures thermo-mechanically treated bars (TMT bars). It has a manufacturing facility at Bhayla Village, Ahmedabad, Gujarat.
TMT bars are high-strength reinforcement steel used widely in the construction industry due to their exceptional strength, ductility, and corrosion resistance.
The company’s revenue from operations in FY23 was ₹882 crore, ₹872.96 crore in FY24, and ₹770.19 crore in FY25. For the three-month period ended June 30, 2025, of the current financial year, the company’s revenue was ₹212.26 crore.
Profit after tax (PAT) for FY23, FY24, and FY25 was ₹4.2 crore, ₹13.47 crore, and ₹14.74 crore, respectively. For the three months ended June 30, 2025, of the current financial year, the company’s profit was ₹8.6 crore.
9. VMS TMT IPO key risks
The company’s dependence on a retail licence agreement with Kamdhenu Limited for the sale of TMT bars, and the agreement is non-exclusive in nature
“If the retail licence agreement with Kamdhenu is terminated, we may face difficulties in retaining our network of distributors and dealers that distribute our products, which could materially and adversely impact our business,” said the company.
10. VMS TMT IPO strength
Analysts at Axis Capital highlighted that the company is positioned to take advantage of the steady growth in the steel bar and rods industry. Moreover, a large distribution network has augmented long-term customer relationships. Additionally, experienced promoters and a committed senior management team and a track record of delivering operating profitability are the key strengths.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
