Gujarat-based steel manufacturer VMS TMT Ltd is set to launch its initial public offering (IPO) on September 17, 2025, aiming to raise ₹148.5 crore through a fully fresh issue of 1.5 crore equity shares. The IPO will close on September 19, with allotment finalization scheduled for September 22 and listing on both NSE and BSE expected by September 24. The company has set a price band of ₹94 to ₹99 per share, with a face value of ₹10 per equity share.
VMS TMT, incorporated in 2013, specializes in the production of Thermo Mechanically Treated (TMT) bars used widely in the construction industry. The company operates a manufacturing facility in Bhayla Village, Ahmedabad, with an installed capacity of 2 lakh metric tonnes per annum. The IPO proceeds will be primarily used for debt repayment and general corporate purposes, with ₹115 crore earmarked for reducing borrowings.
“This IPO is a strategic step to strengthen our balance sheet and fuel future growth. We aim to expand our reach and enhance operational efficiency,” said Varun Manojkumar Jain, one of the promoters of VMS TMT.
—
🧭 VMS TMT IPO Timeline and Key Details
| Event | Date | Description |
|---|---|---|
| IPO Open Date | September 17, 2025 | Bidding begins |
| IPO Close Date | September 19, 2025 | Final day for subscription |
| Allotment Finalization | September 22, 2025 | Basis of allotment to be published |
| Refunds Initiation | September 23, 2025 | For non-allottees |
| Credit to Demat Accounts | September 23, 2025 | Shares credited to investors |
| Listing Date | September 24, 2025 | Shares to be listed on NSE and BSE |
| Anchor Investor Bidding | September 16, 2025 | Institutional investor participation |
—
🔍 VMS TMT IPO Structure and Reservation
| Category | Reservation % | Shares Offered |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 50% | 75,00,000 shares |
| Retail Individual Investors (RII) | 35% | 52,50,000 shares |
| Non-Institutional Investors (NII) | 15% | 22,50,000 shares |
Retail investors can apply for a minimum of one lot comprising 150 shares, requiring an investment of ₹14,850 at the upper price band.
—
📉 VMS TMT Financial Performance Snapshot
| Financial Year | Revenue (₹ crore) | Net Profit (₹ crore) | YoY Growth (%) |
|---|---|---|---|
| FY 2024 | ₹873.17 | ₹13.47 | — |
| FY 2025 | ₹771.41 | ₹15.42 | +14.5% |
| Q1 FY2026 | ₹213.39 | ₹8.58 | — |
Despite a dip in revenue, the company has shown consistent improvement in profitability, driven by operational efficiencies and cost control.
—
📦 VMS TMT Business Overview
| Segment | Description | Key Highlights |
|---|---|---|
| TMT Bar Manufacturing | High-strength reinforcement steel | Manufactured from scrap and billets |
| Distribution Network | 3 distributors and 227 dealers | Predominantly in Gujarat |
| Manufacturing Process | Induction furnace, CCM, rolling mill | 30-ton capacity |
| Market Focus | Retail and institutional sales | Excludes Saurashtra and Kutch districts |
The company markets its products under the Kamdhenu brand and derives most of its revenue from the state of Gujarat.
—
🔥 IPO Objectives and Strategic Rationale
- Debt Reduction: ₹115 crore of the IPO proceeds will be used to repay or prepay borrowings, reducing interest burden and improving financial ratios.
- Corporate Expansion: Remaining funds will be allocated to general corporate purposes, including brand building and operational upgrades.
- Balance Sheet Strengthening: The IPO will improve the company’s equity base and reduce leverage.
- Market Visibility: Listing on NSE and BSE will enhance brand recognition and investor confidence.
As of June 2025, VMS TMT’s total borrowings stood at ₹261.7 crore.
—
🧠 Expert Commentary on VMS TMT IPO
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Metals Sector Analyst | “VMS TMT’s IPO offers a value proposition for long-term investors focused on infrastructure growth.” |
| Rajiv Bansal | Equity Strategist | “The debt reduction plan is a smart move to improve profitability and attract institutional interest.” |
| Dr. Rakesh Sinha | Industrial Economist | “Steel demand in India is set to rise—VMS TMT is well-positioned to capitalize.” |
—
📅 Upcoming Milestones for VMS TMT
| Event | Date | Strategic Importance |
|---|---|---|
| Anchor Investor Allocation | September 16 | Institutional sentiment indicator |
| IPO Subscription Period | Sept 17–19 | Retail and HNI participation |
| Allotment Finalization | September 22 | Basis of allotment published |
| Listing on NSE/BSE | September 24 | Market debut and price discovery |
The company is also exploring expansion into new geographies post-IPO, including Maharashtra and Madhya Pradesh.
—
📌 Conclusion
VMS TMT Ltd’s ₹148.5 crore IPO, opening on September 17, 2025, marks a significant step in its growth journey. With a strong focus on debt reduction, operational efficiency, and regional expansion, the company is poised to attract investor interest across categories. As India’s infrastructure and construction sectors continue to grow, VMS TMT’s strategic positioning and robust distribution network make it a compelling player in the steel manufacturing space.
—
Disclaimer: This article is based on publicly available DRHP filings, financial reports, and expert commentary as of September 12, 2025. It is intended for informational purposes only and does not constitute investment advice.
