VMS TMT IPO

VMS TMT IPO

Steel & Iron Products
open
₹14,100Min. investment
  1. Pre-apply
    15 Sep
  2. Bid start
    17 Sep
  3. Bid end
    19 Sep
  4. Allotment
    22 Sep
  5. Release of funds
    23 Sep
  6. Demat transfer
    23 Sep
  7. Listing
    24 Sep

About VMS TMT Limited

SectorSteel & Iron Products
Price range₹94.00 – ₹99.00
IPO type
Regular
Lot size150 shares
Issue size₹148Cr
Red Herring Prospectus
Read
Market Cap
₹491.35CrLower than sector avg
RevenueApr 2024 - Mar 2025
₹770.19CrLower than sector avg
Growth rate3Y CAGR
-4.42%

VMS TMT Limited IPO Overview

VMS TMT Limited IPO date

VMS TMT Limited IPO will open for subscription on September 17, 2025, and the closing date for the IPO is September 19, 2025. After this, investors are expected to be updated about the allotment status on September 22, 2025.

Investors who have been allotted shares can expect them to be credited to their demat account on September 23, 2025. The shares will be listed on the NSE and the BSE on Wednesday, September 24, 2025.

VMS TMT Limited IPO price band

The IPO includes an offer for sale. The IPO price band has been set between ₹94 to ₹99 per share. Interested investors can choose a price within this band to apply for the IPO. The IPO is a book-building issue, comprising a fresh issue of ₹148.50 crore only.

VMS TMT Limited's IPO listing price will be determined on September 24, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

VMS TMT Sales Limited IPO lot size

VMS TMT Limited IPO details have been declared. The minimum lot size for an application is 150 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹ 148.50 crore.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
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Revenue
Higher revenue means strong sales and good market demand
This IPO
₹770.19Cr
This sector
₹3,652.65Cr
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PAT
Higher PAT means strong profitability and efficient cost management
This IPO
₹14.73Cr
This sector
₹112.07Cr
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Market cap
Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹491.35Cr
This sector
₹6,638.34Cr
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P/E ratio
Lower ratio usually means stock is undervalued
This IPO
23.08
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114.91
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D/E ratio
Lower ratio usually means fewer liabilities
This IPO
3.77
This sector
0.53
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Objectives

Repayment of loans
77.44%
General corporate purposes
22.60%

Strength and Weakness

Industrial growth opportunity

The production and consumption of steel bars and rods in India are growing at a CAGR of 9.2% and 9.7% respectively. This growth has been fueled by the growth of industries such as construction, infrastructure, machinery, etc. The company is well-suited to take advantage of this growth through its strong capacity, distribution and marketing through its retail license agreement with Kamdhenu Limited.

Strong customer base and network

The company has a high customer retention history with long-term relationships with its customers. It sells its TMT bars to retail and institutional customers through a distribution network comprising 3 distributors and 227 dealers. The company has one distributor in each zone of Gujarat to help in market penetration. It also has a strong supply chain management in the state of Gujarat and uses a fleet of over 50 trucks, enabling doorstep delivery to its retail customers.

Integrated manufacturing facility

The company has completed backward integration of its CMM division, which has enabled it to produce TMT bars from scrap, reducing dependency on billets from suppliers. The production capacity for billets from scrap stands at 216,000 MT per annum. It has also received environmental clearance for TMT bars of installed capacity of 30,000 MT per month.

Infrastructure with power optimisation

It operates a 30-ton electric induction furnace and power substation with 22,000 kVAh capacity, while also initiating a 15 MW solar power plant project in order to help reduce electricity costs and support sustainability.

About VMS TMT Limited

Incorporated in 2013, VMS TMT Limited manufactures TMT bars, which are the main product of the company, contributing around 97% of its total revenue. These bars are used in building houses, bridges, and other construction projects. Some part of the revenue is also generated from selling items like scrap, billets, and binding wires. It has a factory near Ahmedabad, Gujarat, with almost 95% of the revenue coming from Gujarat itself in the last 3 years.
The company is now making TMT bars directly from scrap instead of depending on the billets after adding its continuous casting machine (CCM) division in September 2024. Since 2022, it has operated under the brand name of Kamdhenu, after it had a license agreement with Kamdhenu Limited to sell TMT Bars. In FY25, the company produced 1,26,000 tonnes of TMT bars and 1,60,000 tonnes in FY24. The overall production of TMT bars touches 2,00,000 tonnes every year. In Q1FY26, the capacity utilisation stood at 71.5% and 63% in FY25, a drop from 80% in FY24.
The company has installed a 30-ton electric induction furnace, as a part of its backward integration project, producing 2,16,000 tonnes per year for billet making and a 22,000 kVAh power substation.
With a network of 3 distributors and 227 dealers, the company's revenue generation comprises 87% from retail customers in June 2024 and around 79% in FY25. The rest proportion is attributed to international sales. The company has a high leverage with a 3.78x debt-to-equity ratio and a 15.9x debt-to-EBITDA ratio.
India has witnessed a rise in the demand for steel, growing around 7%. Finished steel consumption increased from approximately 90 million tonnes in FY20 to nearly 128 million tonnes in FY25. This steady rise is on the back of large government infrastructure projects and various schemes like Gati Shakti, Bharatmala, and PMAY. There is a recovery in the demand for real estate, within which residential sales grew more than 15% for FY24 across the top 8 Indian cities and a pick-up in office space absorption. With this, demand for TMT bars has also gone up and is expected to reach 62.5 million tonnes in FY25. All these factors together point to a steady rise in demand for good-quality TMT bars in India.
In order to produce steel directly from scrap rather than purchasing billets, the company has also finished a backward integration project that cost roughly ₹117.1 crore. This strategy should increase profits and reduce the cost of raw materials. In collaboration with Prozeal Green Energy Limited, the company is investing approximately ₹46.4 crore to establish a 15 MW solar power plant in Gujarat as part of the state's Renewable Energy Policy 2023 in order to reduce its electricity expenses. The company is well-positioned to profit from the growing demand in the industry because of its strong presence in Gujarat and improved efficiency brought about by these measures. However, its high debt levels remain a key concern for future growth.
Now, VMS TMT Ltd is launching its initial public offering (IPO), which consists of a fresh issue worth up to ₹148.50 crore. Its shares will be listed on the NSE and BSE.

Latest News on IPO

news logo
VMS TMT IPO: The initial share sale is exclusively a fresh issuance of 1,50,00,000 shares aggregating to ₹148.50 crore. There is no offer for sale (OFS) component.

3 min read

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VMS TMT, a manufacturer of thermo-mechanically treated steel bars, has refiled its draft red herring prospectus with SEBI to raise funds via an IPO of 1.5 crore equity shares. The company aims to use Rs 115 crore from the proceeds to reduce debt, which stood at Rs 160.2 crore as of December 2024. The IPO was refiled after withdrawing a previous draft in October 2024.
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EPC company Globe Civil Projects, and thermo mechanically treated bars maker VMS TMT have filed a preliminary papers with the capital markets regulator SEBI to raise funds via initial public offering. New Delhi-headquartered Globe Civil Projects, which executes infrastructure projects, plans to raise funds entirely via fresh issue of 1.9 crore equity shares with no offer-for-sale component.

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of VMS TMT IPO ?

The issue size of the VMS TMT IPO is 148 Cr.

What is 'pre-apply' for VMS TMT IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will VMS TMT IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.
Ipo opens on 17 Sep 2025, 10:00 AM