VMS TMT IPO Subscription Reaches 8.40 Times on Day 1

The VMS TMT IPO has received a strong response from investors, with a subscription of 8.40x by the end of Day 1. The company is offering shares at a price of Rs. 94 to Rs 99 per share, with a minimum lot size of 150 shares. The issue size stands at 1,50,00,000 shares (aggregating up to Rs 148.50 crore), comprising only the fresh issue. Stay tuned for the latest updates on the VMS TMT IPO subscription status as the offering progresses.

VMS TMT IPO Subscription Status - Day 1

The VMS TMT IPO was subscribed 8.40 times on Day 1, with Retail Investors at 6.56 times, Non-Institutional Investors (NIIs) with a demand at 13.78 times, and Qualified Institutional Buyers (QIBs) at 7.09 times.

Last updated: 05:04 PM, Wednesday, 17 Sept 2025

Company Overview of the VMS TMT IPO

VMS TMT Ltd is a Gujarat-based steel manufacturer established in 2013, primarily engaged in producing Thermo-Mechanically Treated (TMT) bars that are widely used in the construction and infrastructure sectors. Alongside TMT bars, the company also trades in related products such as billets, binding wires, and scrap, catering to diverse needs in the steel value chain. Its manufacturing facility, located in Bhayla Village near Ahmedabad, has an installed capacity of 2,00,000 metric tonnes per annum, enabling it to serve a strong network of distributors and over 200 dealers. Through a licensing agreement with Kamdhenu Ltd, VMS TMT markets its products under the “Kamdhenu” and “Kamdhenu NXT” brands, giving it access to established brand recognition and a solid market presence in Gujarat.

In terms of financial performance, the company has shown resilience despite modest revenue fluctuations in recent years. While its revenues have slightly declined from around Rs 882 crore in FY23 to approximately Rs 770 crore in FY25. Its profitability has improved significantly, with profit after tax rising from about Rs 4.2 crore to nearly Rs 14.7 crore in the same period. This growth reflects better cost management and operational efficiency. However, VMS TMT remains heavily dependent on the Gujarat market, which contributes over 98% of its revenue, making regional economic conditions a key factor in its performance. The company’s strategy of leveraging strong branding, combined with backward integration into billet production, positions it as a notable player in the steel industry with opportunities for expansion.

Strengths and Risks of VMS TMT IPO

Let’s dive into the strengths and risks to assess if the VMS TMT IPO is good or bad for investors

Strengths

• Backward Integration: The company manufactures its own billets through induction furnace and CCM, reducing raw material dependency and cost risks.

• Strong Regional Presence: It has a robust dealer network in Gujarat and markets under the well-known “Kamdhenu NXT” brand.

• Large Capacity: With an annual TMT production capacity of 2,00,000 MT, it has room to scale up operations as demand grows.

• Improving Profitability: Despite a modest revenue decline, PAT has risen consistently, and IPO proceeds will further reduce the debt burden.

Risks

• Geographic Concentration: Over 98% of revenues come from the Gujarat region, making growth and stability dependent on one region.

• Thin Margins: EBITDA and PAT margins remain low compared to peers, leaving little cushion against cost volatility.

• High Debt: The company has historically carried high leverage, exposing it to interest costs and repayment pressures.

• Dependence on Kamdhenu Brand: Most sales rely on the Kamdhenu licensing agreement, and any change could hurt market reach.

• Cyclical Demand & Raw Material Volatility: Its performance is tied to construction cycles and vulnerable to fluctuations in steel and power costs.

VMS TMT IPO Details

• IPO Date: September 17, 2025, to September 19, 2025

• Issue Price: Rs 94 to Rs 99 per share

• Lot Size: 150 shares

• Total Issue Size: 1,50,00,000 shares (aggregating up to Rs 148.50 crore)

• Tentative Allotment Date: Monday, September 22, 2025

• Tentative Listing Date: Wednesday, September 24, 2025

How to Apply for VMS TMT IPO

• Visit the Rupeezy app or Rupezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.