VMS TMT IPO to open on 17 Sept; check price band, issue size, financials & more

Gujarat-based VMS TMT, a manufacturer of thermo-mechanically treated (TMT) steel bars, has announced its initial public offering (IPO) will open for subscription from 17 September to 19 September 2025. The offering comprises a fresh issue of 1.5 crore shares within a price band of Rs 94-99 per share

At the upper band, the IPO seeks to raise approximately Rs 148.5 crore, valuing the company at a market capitalisation close to Rs 490 crore. Arihant Capital Markets is the book running lead manager, while Kfin Technologies acts as the registrar. The tentative allotment date is 22 September, with shares expected to list on BSE and NSE on 24 September.

The IPO is structured as a 100% fresh issue, with proceeds allocated primarily for repaying outstanding borrowings. As of June 2025, VMS TMT Ltd's total borrowings stood at Rs 262 crore. The anchor book opens one day earlier, on 16 September, and the issue aims to improve the company’s financial leverage through targeted debt reduction.

Founded in 2013, VMS TMT operates a manufacturing facility in Bhayla Village, near Bavla in Ahmedabad district, Gujarat. The facility is strategically located for optimised distribution and boasts an installed capacity of 2 lakh metric tonnes per annum, producing TMT bars from scrap and billets. The company also deals in scrap and binding wires, distributing within Gujarat and other states.

For the quarter ending June 2025, VMS TMT reported a profit of Rs 8.58 crore and revenue of Rs 213.39 crore. In FY25, profit rose by 14.5% to Rs 15.4 crore, while revenue declined by 11.8% to Rs 770.2 crore compared to the previous year. Details on financial ratios, price-to-earnings multiples, and comparative analysis with peers were not provided in company filings.

The company has reserved 30% of the net offer for the qualified institutional bidders, while non-institutional investors (NIIs) will get 20% of the allocation. Retail investors will have 50% of reservation in this IPO.