VMS TMT Limited is coming up with its Initial Public Offering (IPO) to raise capital to reduce debt and for general corporate purposes. The IPO comprises entirely a fresh issue of 1.50 crore equity shares aggregating up to Rs. 148.50 crore.
The IPO opens on September 17, 2025, and closes on September 19, 2025. The shares will be listed on NSE and BSE on Wednesday, September 24, 2025. Here’s everything you need to know.
GMP of VMS TMT IPO
As of September 17, 2025, the shares of VMS TMT Limited in the grey market were trading at a 23.23 percent premium. The shares in the Grey Market traded at Rs. 122. This gives it a premium of Rs. 23 per share over the cap price of Rs. 99.
Overview of VMS TMT Limited
VMS TMT Limited was incorporated in 2013 and is engaged in the manufacturing of Thermo Mechanically Treated (TMT) Bars, along with trading in scrap and binding wires. The company’s manufacturing unit is located in Bhayla Village near Bavla in the Ahmedabad district, Gujarat, providing it with a strategic advantage for smooth product distribution within the state and beyond.
The company has built a strong distribution network to reach customers effectively. As of July 31, 2025, it operates through 3 distributors and 227 dealers on a non-exclusive basis, ensuring a wide market presence across Gujarat and other states. In 2022, VMS TMT Limited signed a retail license agreement with Kamdhenu Limited, enabling it to sell TMT Bars under the brand ‘Kamdhenu NXT’ in Gujarat.
With a workforce of 230 permanent employees and an experienced management team, the company focuses its sales efforts on Tier II and Tier III cities. A major part of its revenue comes from Gujarat, which contributed 98.78 percent in Fiscal 2024, highlighting the company’s strong regional presence and customer base.
Promoters of VMS TMT Limited
The promoters are Varun Manojkumar Jain, Rishabh Sunil Singhi, Manojkumar Jain, and Sangeeta Jain. They hold significant shareholding and actively manage the company’s operations and growth. The IPO only consists of a fresh issue of equity shares. No existing shareholders are offering shares for sale in this IPO.
Lead Managers of VMS TMT Limited IPO
Arihant Capital Markets Limited is the sole Book Running Lead Manager (BRLM). Kfin Technologies Limited acts as the registrar to the issue.
Objectives of the IPO Offer
VMS TMT Limited IPO proposes to utilize the net proceeds for one main objective. The company will use Rs. 115 crore for repayment or prepayment of borrowings in the company. Remaining proceeds will fund general corporate purposes.
Financial Analysis of VMS TMT Limited
VMS TMT Limited’s revenue has decreased from Rs. 872.96 crore in FY24 to Rs. 770.19 crore in FY25, which represents a drop of 11.77 percent. The net profit has increased by 9.43 percent, from Rs. 13.47 crore in FY24 to Rs. 14.74 crore in FY25.
In Q1 FY26, the company has reported a revenue of Rs. 212.26 crore and a net profit of Rs. 8.58 crore. The basic earnings per share increased by 11.97 percent and stood at Rs. 4.49 in FY25 as against Rs. 4.01 recorded in FY24. In terms of return ratios, the company’s ROCE and RoNW stand at 12.79 percent and 20.14 percent, respectively. VMS TMT Limited’s debt-to-equity ratio is 6.06x.
VMS TMT Limited Vs Peers
VMS TMT Limited reported a standalone revenue of Rs. 771.41 crore and a RoNW of 20.14 percent. In comparison, Kamdhenu Limited has a standalone revenue of Rs. 757.95 crore and a RoNW of 18.82 percent. Vraj Iron and Steel Limited reported Rs. 478.86 crore in revenue and a RoNW of 10.88 percent. Other peers of the company are BMW Industries Limited and Electrotherm (India) Limited.
VMS TMT Limited’s net asset value per share is Rs. 13.32, compared to Rs. 116.53 for Vraj Iron and Steel Limited, Rs. 30.84 for BMW Industries Limited, and Rs. 11.66 for Kamdhenu Limited.
Strengths of VMS TMT Limited
- Strong brand association with Kamdhenu NXT enhances market credibility and consumer trust.
- Experienced promoters ensure strategic direction and operational consistency.
- Expanding the product portfolio supports growth in the construction and infrastructure markets.
- Focused regional presence improves distribution efficiency and customer retention.
- Modern manufacturing facilities enhance quality and operational performance.
Weaknesses of VMS TMT Limited
- High debt levels increase financial risk and interest burden.
- Dependence on the construction sector exposes the company to cyclical risks.
- Intense competition from larger players may limit pricing flexibility.
- Limited geographic reach reduces the ability to capture pan-India demand.
- Cash flow volatility from large capital investments impacts liquidity.
Conclusion
VMS TMT Limited’s IPO offers investors exposure to India’s growing construction and infrastructure-driven steel demand. The company’s brand association, modern facilities, and regional presence provide competitive advantages. However, investors should weigh the risks of high debt and sector dependency. Careful evaluation of financials, peers, and market conditions is essential before subscribing.
Written By – Nikhil Naik
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