The Indian IPO market is buzzing again, and this time, it’s a Gujarat-based company, VMS TMT Limited, that’s grabbing the headlines. The company, a major player in the TMT bar manufacturing space, has launched its Initial Public Offering (IPO) to raise some serious capital. If you’re an investor, or just someone keeping an eye on the markets, here’s a quick and easy breakdown of everything you need to know about this IPO.
VMS TMT IPO: The Key Details
The IPO opened for subscription on Wednesday, September 17, 2025, and will be available for bidding until Friday, September 19, 2025. The company has set the price band at ₹94 to ₹99 per equity share. For retail investors, the minimum investment is ₹14,850 for a lot of 150 shares. The entire issue is a fresh issue of 1.5 crore equity shares, aiming to raise a total of ₹148.50 crore at the upper end of the price band.
So, what’s the plan with all this money? VMS TMT is primarily looking to use a big chunk of the proceeds—about ₹115 crore—to repay or prepay some of its existing borrowings. This move is expected to help the company reduce its debt burden and improve its financial health, which is a big positive for any investor. The rest of the funds will be used for general corporate purposes.
Subscription Status: The Early Rush
On Day 1 of the bidding, the VMS TMT IPO saw a decent response from investors. According to the latest data, the public issue was subscribed about 3.47 times in total. The retail individual investors (RIIs) portion was subscribed 2.40 times, showing good interest from the common man. The Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) also showed strong interest, with their portions subscribed 6.84 times and 4.09 times, respectively. This early momentum indicates a healthy appetite for the IPO.
The unofficial grey market is often a good indicator of investor sentiment before an IPO lists. For VMS TMT, the GMP has been quite positive. As of today, the VMS TMT IPO GMP is hovering around ₹23, which suggests a potential listing gain of approximately 23% over the issue price. This is a promising sign for those looking for a quick listing pop, but remember, GMP is an unofficial indicator and can be highly volatile.
A Look at the Company and its Financials
VMS TMT Limited, incorporated in 2013, is a manufacturer of Thermo Mechanically Treated (TMT) bars, which are a critical component in the construction and infrastructure sectors. The company’s manufacturing facility is located near Ahmedabad, Gujarat, and it has an annual installed capacity of 200,000 metric tonnes. One of their key strengths is a retail licensing agreement with Kamdhenu Limited to sell their TMT bars under the well-known “Kamdhenu NXT” brand in Gujarat.
Financially, the company has seen some ups and downs. While its revenue from operations dipped to ₹771.41 crore in FY25 from ₹873.17 crore in FY24, its profitability has shown an upward trend. The company’s profit after tax (PAT) saw a healthy jump from ₹4.20 crore in FY23 to ₹15.42 crore in FY25. This shows that while sales might have fluctuated, the company has managed to improve its operational efficiency and margins. However, it’s worth noting that the company’s debt-to-equity ratio remains on the higher side.
All in all, with India’s infrastructure and construction sectors on a growth path, VMS TMT is well-positioned to capitalize on the increasing demand for steel products. The positive subscription status and a healthy GMP are a good start, but as always, investors should do their own due diligence before making any investment decision.
Disclaimer: Any stock market-related information on this website is for informational purposes only. Users are advised not to use this as a recommendation of any sort.
