VMS TMT IPO: Price Band, Analysis, Allotment, and GMP

Table of Contents

• VMS TMT IPO – Company Analysis
  
  

• VMS TMT IPO Details
  
  

• Hidden Facts about the IPO
  
  

• Industry Outlook
  
  

• Company Financials
  
  

• The Objective of the Issue
  
  

• Listed Peers of VMS TMT Ltd.
  
  

• Evaluation of P/E Ratio
  
  

• IPO’s Strengths
  
  

• IPO’s Weaknesses
  
  

• VMS TMT IPO GMP
  
  

• IPO Summary
  
  

• IPO Lot Size
  
  

• IPO Reservation
  
  

• IPO Allotment Status
  
  

• Promoters and Management
  
  

• Lead Managers
  
  

• Dividend Policy
  
  

• Conclusion
  
  

• FAQs
  
  

VMS TMT IPO – Company Analysis

• Company: VMS TMT Ltd. was incorporated in 2007.
  
  

• Business: Manufacturer of TMT bars and structural steel products used in construction and infrastructure.
  
  

• Clients: Real estate developers, government contractors, and retail distributors.
  
  

• Operations: Strong presence in Gujarat and surrounding states.
  
  

• Manufacturing Capacity: Over 1.5 lakh tonnes annually with modern rolling mills.
  
  

VMS TMT IPO Details

• IPO Opening Date: Sep 23, 2025
  
  

• IPO Closing Date: Sep 25, 2025
  
  

• IPO Allotment Date: Sep 26, 2025
  
  

• Refund Initiation: Sep 29, 2025
  
  

• Tentative Listing Date: Sep 30, 2025 (BSE SME)
  
  

• Issue Size: Rs. 48.50 Cr
  
  

• Fresh Issue: 51 lakh shares worth Rs. 48.50 Cr
  
  

• Price Band: Rs. 92 – Rs. 95 per share
  
  

• Lot Size: 1200 shares per lot
  
  

• Registrar: Skyline Financial Services Pvt. Ltd.
  
  

• Issue Type: Book Built Issue SME IPO
  
  

Hidden Facts about the IPO

• Expansion funds will be used to set up a new rolling mill in Gujarat.
  
  

• Heavy dependency on regional markets may limit nationwide scalability.
  
  

• Promoter group has pledged a part of their shareholding for debt obligations.
  
  

Industry Outlook

• The Indian steel industry is projected to grow at a CAGR of 6–7% (2024–2030).
  
  

• Demand for TMT bars is driven by rising urban infrastructure and housing projects.
  
  

• Government’s push on highways, smart cities, and renewable projects supports long-term demand.
  
  

Company Financials (as of March 31)

• Total Assets: FY25 – Rs. 120.45 Cr | FY24 – Rs. 95.26 Cr | FY23 – Rs. 81.12 Cr
  
  

• Total Revenue: FY25 – Rs. 225.18 Cr | FY24 – Rs. 198.60 Cr | FY23 – Rs. 176.44 Cr
  
  

• PAT (Profit After Tax): FY25 – Rs. 12.40 Cr | FY24 – Rs. 9.25 Cr | FY23 – Rs. 6.83 Cr
  
  

• Net Worth: FY25 – Rs. 68.12 Cr | FY24 – Rs. 54.10 Cr | FY23 – Rs. 42.35 Cr
  
  

• Borrowings: FY25 – Rs. 22.35 Cr | FY24 – Rs. 18.42 Cr | FY23 – Rs. 15.90 Cr
  
  

The Objective of the Issue

• To fund the new rolling mill project.
  
  

• Repayment/prepayment of existing borrowings.
  
  

• Working capital requirements.
  
  

• General corporate purposes.
  
  

Listed Peers of VMS TMT Ltd.

• Kamdhenu Ltd. – EPS: Rs. 15.28 | P/E: 24.10x
  
  

• Shyam Steel Industries – EPS: Rs. 18.42 | P/E: 21.45x
  
  

• Electrosteel Steels Ltd. – EPS: Rs. 3.76 | P/E: 31.80x
  
  

Evaluation of P/E Ratio

• EPS (FY25): Rs. 2.45
  
  

• P/E Ratio: 38.77x
  
  

• Industry Average P/E: 26.40x
  
  

• Interpretation: The IPO appears to be slightly overpriced compared to peers.
  
  

IPO’s Strengths