By Mohammad Haris,News18

Copyright news18

VMS TMT IPO GMP Today: The initial public offering (IPO) of Ahmedabad-based steel manufacturer VMS TMT Ltd is going to be closed today, Friday, September 19. The price has been fixed at Rs 94-99 per share. Till 12:04 pm on the final day of bidding on Friday, the Rs 148.5-crore IPO received a 40.40x subscription, garnering bids for 49,69,28,100 equity shares against 1,23,00,000 equity shares on offer.
The retail and NII participation stood at 30.13x and 85.67x, respectively. The QIB category was subscribed by 7.73x.
VMS TMT IPO GMP
According to market observers, unlisted shares of VMS TMT Ltd are currently trading at Rs 114 against the upper IPO price of Rs 99. It means a grey market premium or GMP of Rs 15, which is 15.15% over its issue price.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
VMS TMT IPO Details
The IPO is entirely a fresh issue of up to 1,50,00,000 equity shares with no offer for sale component.
VMS TMT Limited intends to utilise Rs 115 crores of the IPO proceeds for repayment/ prepayment, in full or part, of all or a portion of certain borrowings availed by the Company, while the remaining funds will be used for general corporate purposes and issue expenses.
The IPO will fetch Rs 148.50 crore at the upper end of the price band.
Investors can bid for a minimum of 150 equity shares and in multiples of 150 equity shares thereafter.
The allocation structure reserves 50% for retail investors, 30% for qualified institutional buyers (including anchor investors), and 20% for non-institutional investors. Arihant Capital Markets is the book-running lead manager, while KFin Technologies is the registrar.
Financially, the company reported a profit after tax of Rs 154.18 million in FY25, up from Rs 134.68 million in FY24. Analysts note that with India’s rising demand for steel bars, driven by infrastructure and real estate growth, VMS TMT is well-positioned to benefit from the industry momentum.
About VMS TMT
VMS TMT is engaged in the manufacturing of Thermo Mechanically Treated Bars (“TMT Bars”) at its facility situated at Bhayla Village, Ahmedabad, Gujarat, India. TMT Bars are high-strength reinforcement steel widely used in the construction industry due to their exceptional strength, ductility, and corrosion resistance. The company conducts business predominantly in the State of Gujarat, from where it derives most of its revenue. Revenue from operations also includes the sale of scrap, binding wires, and billets.
The company has a diverse customer base comprising retail and institutional customers primarily based in Gujarat. It holds a retail license agreement with Kamdhenu Limited, allowing it to market TMT Bars under the Kamdhenu brand on mutually agreed terms within Gujarat (excluding Saurashtra and Kutch districts) on a non-exclusive basis. Sales are executed through a distribution network, on a non-exclusive basis, consisting of 3 distributors and 227 dealers.
The company currently manufactures TMT Bars from scrap and billets at its facility. Production is carried out through a thirty-ton induction furnace using scrap in a continuous casting machine (CCM) and rolling mill, as well as from billets through a reheating furnace and rolling mill. The total annual installed capacity of TMT Bars is 200,000 tonnes (MT).