Ahmedabad, India – Gujarat-based VMS TMT Limited, a leading manufacturer of thermo-mechanically treated (TMT) bars, is set to launch its initial public offering (IPO) on September 17, 2025, aiming to raise ₹148.5 crore through a fresh issue of 1.50 crore shares. The issue, priced in the band of ₹94–₹99 per share, will close on September 19, 2025, with listing expected on the BSE and NSE on September 24, 2025.

IPO Structure and Investor Allocation

The IPO will be managed by Arihant Capital Markets Ltd. with Kfin Technologies Ltd. serving as registrar. Unlike an offer-for-sale, the entire issue is a fresh capital raise, expanding the company’s post-issue equity base from 3.46 crore to 4.96 crore shares.

The allocation structure favors retail investors, with 50% reserved for the retail category, 30% for qualified institutional buyers (QIBs), and 20% for non-institutional investors (NIIs).

• Minimum Retail Application: 1 lot (150 shares) at ₹14,850 (upper band)

• S-HNI Entry: 14 lots (2,100 shares) at ₹2,07,900

• B-HNI Entry: 68 lots (10,200 shares) at ₹10,09,800

Promoter holding is expected to dilute from 96.28% pre-issue to 67.19% post-issue, reflecting a significant equity unlock.

Company Overview: Steel With a Regional Edge

Incorporated in 2013, VMS TMT Limited is primarily engaged in the production of TMT bars, with additional businesses in scrap and binding wires. Its manufacturing facility in Bhayla Village, Ahmedabad district offers a strategic distribution advantage across Gujarat and beyond.

The company operates a network of 3 distributors and 227 dealers and holds a retail license with Kamdhenu Limited, enabling it to market TMT bars under the ‘Kamdhenu NXT’ brand across Gujarat.

A workforce of 230 employees supports operations, with sales largely focused on Tier II and Tier III cities. Notably, Gujarat accounted for over 98% of revenues across FY22–FY24.

Financial Performance and Valuation

Despite a 12% decline in revenue in FY25 to ₹771.41 crore, the company posted a 14% rise in profit after tax (PAT) to ₹15.42 crore, highlighting cost efficiencies and margin improvement.

As of March 2025:

• Assets: ₹412.06 crore

• Net Worth: ₹73.19 crore

• Total Borrowings: ₹275.72 crore

• PAT Margin: 1.91%

• RoNW: 20.14%

• Debt-to-Equity: 6.06, indicating a highly leveraged balance sheet.

At the upper price band, the IPO implies a market capitalization of ₹491.35 crore and a price-to-book value of 7.43x.

Key Considerations for Investors

VMS TMT’s strong regional presence, distribution tie-up with Kamdhenu, and improving profitability position it as a niche steel play. However, its geographic concentration in Gujarat, high leverage, and modest margins pose risks that investors must weigh carefully.

The IPO’s outcome will signal investor appetite for mid-cap industrial and infrastructure-linked plays, particularly as India’s construction demand strengthens.