VMS TMT IPO: Steel Product Maker’s Issue Booked Over 4 Times On First Day Of Bidding- Know Key Details From RHP

VMS TMT IPO: VMS TMT’s public issue opened for subscription on September 17, 2025. The steel product manufacturer’s public issue has been booked more than four times within hours of the opening of the bidding window on the first day of subscription. Here’s a look at details of the public issue from the company’s red herring prospectus (RHP).

VMS TMT IPO GMP

The grey market premium (GMP) of VMS TMT’s initial public offering (IPO) is in the range of Rs 23-24 per share on the first day of subscription, according to various websites which track the demand for shares of unlisted companies. Based on the GMP of Rs 24, shares of VMS TMT are expected to debut at Rs 123 per share, indicating potential listing gains of over 25 per cent.

VMS TMT IPO: Subscription Update

VMS TMT IPO has been subscribed over four times so far on the first day of bidding. At the time of writing, investors across categories have placed bids for 56.71 million shares compared to the 12.30 million shares offered for bidding. Qualified institutional buyers (QIBs) have booked the issue 6.91 times by placing bids for 12.43 million shares compared to the 1.80 million shares reserved for the category. Non-institutional investors (NIIs) have placed bids for 18.23 million shares compared to the 3 million shares offered for subscription, booking the issue 6.08 times. Retail investors have booked the IPO 3.47 times so far, applying for 26.04 million shares against the 7.50 million shares offered for subscription.

VMS TMT IPO Offer Size, Listing Date, Price Band

VMS TMT seeks to raise Rs 148.50 crore through its public issue consisting of 15 million shares. The price band has been set between Rs 94 and Rs 99. Retail individual investors can place bids for a minimum of one lot comprising 150 shares, amounting to an investment of Rs 14,850.

The subscription window of VMS TMT IPO will close on September 19. The share allotment status of the steel products maker’s public issue is likely to be finalised on September 22 and successful bidders will receive the shares in their demat accounts on September 23. Shares of VMS TMT will tentatively list on the BSE and NSE on September 24.

VMS TMT: Key Financials

In the fiscal ending March 31, 2025, VMS TMT’s total income stood at Rs 771.41 crore, down by over 11 per cent compared to Rs 873.17 crore in the preceding fiscal. Its profit-after-tax (PAT) for the fiscal was up by over 14 per cent to Rs 15.42 crore compared to Rs 13.47 crore in the preceding fiscal. VMS TMT net worth also increased by more than 57 per cent to Rs 73.19 crore in the fiscal ending March 31, 2025, compared to Rs 46.51 crore in the financial year ending March 31, 2024.

VMS TMT: Peers

VMS TMT mentioned in its RHP that some of its major listed peers include steel products manufacturers who make thermo-mechanically treated bars and other such products. Some of VMS TMT’s listed peers include Kamdhenu, Vraj Iron and Steel, BMW Industries, and Electrotherm (India).

VMS TMT: Business Model

VMS TMT mentioned in its RHP that it is a manufacturer of TMT bars. The company manufactures TMT bars and steel products at its facility located in Ahmedabad, Gujarat. The company conducts its business primarily in Gujarat. The company generates revenue from the sale of steel products to customers through its distribution network consisting of three distributors and 227 dealers as of July 31, 2025. In addition to TMT bars the company’s product portfolio also includes steel products, such as billets, binding wires, scrap, and other by-products. The company’s clients include both retail and institutional buyers.

VMS TMT IPO: Risks and Strengths

Here’s a look at some of the key risks related to VMS TMT’s business according to the company’s RHP:

• VMS TMT said that that it depends on a retail licence agreement with Kamdhenu for sale of TMT bars. Notably the agreement is non-exclusive in nature. Termination of the licence may result in difficulties for the company and materially and adversely impact the company’s results of operations.

• The steel product manufacturer also disclosed in its RHP that its business and profitability are dependent on availability of raw materials from third party suppliers. Potential disruptions to the supply of raw materials or volatility in prices can negatively impact the company’s business.

• A significant part of its revenue comes from its top 10 customers. The loss of any of these customers or a reduction in purchases by any of them could adversely affect the company’s business.

Here’s a look at some of the key strengths of VMS TMT according to the company’s RHP:

• VMS TMT said that it seeks to benefit from improvement in financial performance consequent to implementation of backward integration projects in the continuous casting machine division (CCM).

• VMS TMT is also likely to benefit from steady growth in the steel bar and rods industry.

• The steel product maker also claims to have long-term customer relationships augmented with a large distribution network.

VMS TMT: Objective

VMS TMT plans to use the funds generated via the public issue for repayment or prepayment of the company’s borrowings, and for other general corporate purposes.