VMS TMT shares make a muted debut; stock lists at 6% premium

Shares of VMS TMT made a muted stock market debut on Wednesday, September 24 as the metal TMT bar player was listed at Rs 105 on BSE, a premium of 6.06 per cent over its issue price of Rs 99. Similarly, the stock kicked off its maiden trading session with a premium of 5.95 per cent over the given issue price at Rs 104.90 on NSE.

Retail investors, who received a single lot of 150 equity shares made a profit of Rs 900, while HNI bidders, who received 14 lots of 2,100 equity shares, made a profit of Rs 12,600 on their allotment. The stock is listed in 'T' group securities which means that intraday buying and selling is not possible on the counter and the stock will have a 5 per cent circuit filter for 10 sessions post listing.

However, the listing of VMS TMT has been below expectations. Ahead of listing, the grey market premium (GMP) of VMS TMT has seen some recovery. Last heard, the company was commanding a premium of Rs 12-13 in the unofficial market, suggesting listing gains of 12-13 per cent for the investors.

The IPO of Ahmedabad-based VMS TMT ran for bidding between September 17 and September 19. The company offered its shares in the price band of Rs 94-99 per share with a lot size of 150 shares. The company raised a total of Rs 148.50 crore via IPO, which was entirely a fresh share sale of 1,50,00,000 equity shares.

The issue was overall subscribed a solid 102.26 times fetching more than 21.37 akh applications, fetching bids for 12,450 crore for the issue net of anchor book. The allocation for the qualified institutional bidders (QIBs) was subscribed 120.8 times, while the portion for non-institutional investors' (NIIs) saw bids for 227.09 times. The retail investors' quota was booked at 47.88 times.

Incorporation in 2013, Ahmedabad-based VMS TMT is primarily engaged in the manufacturing of Thermo Mechanically Treated Bars (TMT Bars). It also deals in scrap and binding wires, which are sold within Gujarat and other states. Its manufacturing facility is strategically located in Bhayla Village, near Bavla in Ahmedabad district, Gujarat, allowing easy distribution of products.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it for long-term. Arihant Capital Markets was the sole book running lead manager for IPO of VMS TMT and Kfin Technologies served as the registrar of the issue.