The initial public offering (IPO) of VMS TMT opens for bidding today, that is on Wednesday, September 17. The metal player shall be selling its shares in the range of Rs 94-99 apiece and investors can apply for a minimum of 150 equity shares and its multiples thereafter.
The issue shall close for bidding on Friday, September 19.
VMS TMT is looking to raise a total of Rs 148.50 crore via its primary offering, which is entirely a fresh share sale of 1,50,00,000 equity shares. The net proceeds from the issue shall be utilized towards the repayment or prepayment of debt and general corporate purposes.
Incorporation in 2013, Ahmedabad-based VMS TMT is primarily engaged in the manufacturing of Thermo Mechanically Treated Bars (TMT Bars). It also deals in scrap and binding wires, which are sold within Gujarat and other states. Its manufacturing facility is strategically located in Bhayla Village, near Bavla in Ahmedabad district, Gujarat, allowing easy distribution of products.
Ahead of its IPO, VMS TMT raised a total of Rs 26.73 crore via five anchor investors as it allocated 27 lakh equity shares at Rs 99 apiece. Its anchor book included names like Saint Capital Fund, Maybank Securities, Astrone Capital, Chanakya Opportunities Fund and Vbcube Ventures Fund.
VMS TMT reported a net profit of Rs 8.58 crore with a revenue of Rs 213.39 crore for the three-months ended on June 30, 2025. The company clocked a net profit of Rs 15.42 crore with a revenue of Rs 771.41 crore for the financial year 2024-25. At current valuations, the company is commanding a market capitalization of Rs 491.35 crore.
VMS TMT has reserved 30 per cent of the net offer for qualified institutional bidders, while non-institutional investors have a 20 per cent allocation. Retail investors have the highest, 50 per cent, allocation in this IPO. Last heard, the company was commanding a grey market premium of Rs 23, suggesting a listing pop of 23 per cent for the investors.
Arihant Capital Markets is the sole book running lead manager and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE, with September 23 as the tentative date of listing. Here’s what brokerage firms have to say about the IPO of VMS TMT:
Ventura Securities
Rating: Subscribe
A unique feature is its licensing agreement with Kamdhenu, under which VMS TMT can market its TMT bars under the ‘Kamdhenu NXT’ brand in Gujarat on a non-exclusive basis. It gives it a branding advantage in a competitive local market. Another strength is its move toward backward integration. This reduces dependency, ensures consistent supply, and helps control costs, said Ventura.
“The company has also begun diversifying into related products such as mild steel pipes, opening new growth avenues. With experienced promoters, modern manufacturing techniques, strong quality control, and sustainability focus, VMS TMT positions itself as a growing regional steel player,” it added with a ‘subscribe’ rating.
Master Capital Services
Rating: Subscribe
The widespread adoption of TMT bars is not just a trend but a necessity, given the evolving structural requirements of contemporary construction projects. Engineers and builders across the country are increasingly turning to TMT bars to meet these demands, owing to their numerous advantages over traditional reinforcement materials, said Master Capital Services.
“VMS TMT is well-positioned to capture the expected growth and is integrating renewable energy initiatives for cost optimization and sustainability. The company has also consistently explored opportunities to diversify its product portfolio and expand its operations. Investors may consider the IPO as a potential long-term investment opportunity,” it added.
SMIFS
Rating: Subscribe
“We recommend subscribing to the issue, supported by the company’s 15 MW captive solar power plant that will lower power costs, strategic diversification into adjacencies like MS Pipes, and potential ramp-up of TMT bars capacity utilization, making it a good long term opportunity,” said SMIFS.
BP Equities
Rating: Subscribe
On the upper price band, VMS TMT is valued at a P/E ratio of 22x based on FY25 earnings, which is higher compared to its peers, said BP Equities. “However, considering the company’s strong financial position and favourable market conditions, we recommend a ‘subscribe’ rating for this issue,” he said.
Marwadi Financial Services
Rating: Subscribe
“We assign ‘subscribe’ rating to this IPO as the company is positioned to take advantage of the steady growth in the steel bar and rods industry. Also, valuations are reasonable as compared to its peers,” said Marwadi Financial Services.
Kunvarji Financial Services
Rating: Subscribe
“We recommend subscribing to this IPO with a long term view only as the issue appears aggressively priced. It has demonstrated healthy profitability, driven by consistent operational excellence and a solid distribution network in Gujarat, amid rising construction activity, it is well positioned to leverage strong demand across sectors” it Kunvarji Financial Services.