VMS TMT IPO

About VMS TMT IPO

VMS TMT Limited IPO is an IPO of up to 1,50,00,000 equity shares (aggregating up to ₹148.50 crores). It consists of fresh issue of up to 1,50,00,000 equity shares of face value of ₹ 10 each (“Equity Shares”) aggregating up to ₹148.50 crores. The lot size is 150. The price band is set between ₹94 and ₹99.

The IPO opens on Sept 17, 2025 and closes on Sept 19, 2025. The shares will be allotted on Mon, Sep 22, 2025 . The credit of shares to the demat account will take place on Tue, Sep 23, 2025 and the initiation of refunds will take place on Tue, Sep 23, 2025.

The company is engaged in the manufacturing of Thermo Mechanically Treated Bars (“TMT Bars”) at their manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. TMT Bars are high-strength reinforcement steel used widely in the construction industry due to their exceptional strength, ductility, and corrosion resistance. (Dun & Bradstreet Report) The company conducts their business predominantly in the State of Gujarat.

Their revenue model is based on the sale of TMT Bars to customers through a distribution network, on a non-exclusive basis, comprising 3 distributors and 227 dealers as of July 31, 2025. Additionally, they also generate revenue from the sale of allied products, including billets, binding wires, scrap, and other by-products arising during the manufacturing process of TMT Bars.

Objective of VMS TMT IPO

• Repayment/ prepayment, in full or part, of all or a portion of certain borrowings availed by our Company.
  

• General corporate purposes.
  

Industry Outlook

India’s domestic consumption of TMT bars has been rising steadily, reflecting the strong momentum in the construction and infrastructure sectors. Consumption has expanded from about 41.6 million tons in FY 2021 to an estimated 62.5 million tons by FY 2025, registering a healthy CAGR of around 10.7% during this period. This sharp rise underscores the critical role of TMT bars in meeting the demand generated by large-scale infrastructure investments, rapid urbanization, and sustained growth in residential as well as commercial real estate projects.

The trend also highlights the increasing dependence of India’s steel ecosystem on the long-products category, with TMT bars emerging as a cornerstone material in both public and private construction activity. Government initiatives such as the National Infrastructure Pipeline (NIP), focus on housing for all, and rapid expansion in urban transit networks have been key demand drivers, ensuring that consumption levels have grown consistently over the last few years. By FY 2025, the scale of consumption clearly reflects a market that is not only expanding in volume but also becoming more structured and responsive to quality standards, given the increasing preference for high-strength and earthquake-resistant grades. Overall, this period signifies a phase of robust consolidation for TMT bar consumption in India, aligned with the country’s ambitious infrastructure and urban development agenda.

Further, India is poised to become the third largest construction market in the next 2-3 years on the back of stable economic growth as the real estate sector has emerged to be a critical engine in the country’s growth story. To reach this target, the construction sector and consequently, the steel sector will play a major role in the growth of the country.

Company Information

VMS TMT Limited is engaged in manufacturing Thermo Mechanically Treated Bars (“TMT Bars”) at their manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. TMT Bars are high-strength reinforcement steel used widely in the construction industry due to their exceptional strength, ductility, and corrosion resistance. (Dun & Bradstreet Report). They conduct their business predominantly in the State of Gujarat. Their revenue from operations also includes sale of scrap, binding wires and billets. They have a diverse customer base of retail and institutional customers primarily based in the State of Gujarat (except Saurashtra and Kutch district of Gujarat). They have a retail license agreement dated November 7, 2022, with Kamdhenu Limited which allows us to market their TMT Bars under the Kamdhenu Brand on mutually agreed terms within the State of Gujarat (except Saurashtra and Kutch district of Gujarat) on a non-exclusive basis. They sell their TMT Bars to customers through a distribution network, on a non-exclusive basis, which comprises 3 distributors and 227 dealers as of July 31, 2025. Their total annual installed capacity of TMT Bars is 200,000 metric tonnes (“MT”) per annum and their production of TMT Bars in the three months period that ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 was 35,741 MT, 1,26,065 MT, 1,60,321 MT and 1,61,807 MT, respectively.

Strengths of VMS TMT IPO

• Poised to capture growth in the TMT bar market.
  
• Long-term customer relationships augmented by large distribution network.
  
• Established infrastructure with backward integration with strong logistics support.
  
• Experienced Promoters and committed senior management team.
  
• Strong Supply Chain and Logistics.
  
• Consistent Financial Growth: VMS TMT has shown strong financial performance, with increasing revenues and profits over recent years. This growth reflects the company’s ability to capture market demand effectively.
  
• The company’s healthy operating cash flows indicate efficient operations and the ability to reinvest in business expansion and innovation. Strong financial ratios, such as profitability and liquidity ratios, further reinforce financial stability.
  

Risks of VMS TMT IPO

• Competitive Pressure: The TMT Bar industry is highly competitive, with many manufacturers vying for market share. Intense competition can lead to pricing pressures and impact profitability. VMS TMT must continuously innovate and maintain high-quality standards to stay competitive.
  
• Cost Fluctuations: The prices of raw materials like MS scrap and sponge iron are subject to market volatility, which can affect production costs and profit margins. VMS TMT needs effective procurement strategies and cost management practices to mitigate these risks.
  
• Compliance and Costs: Changes in industry regulations and environmental policies may require the company to adjust its operations and incur additional compliance costs. Staying ahead of regulatory changes and ensuring compliance is essential for minimizing operational disruptions.
  
• Reliance on Distributors: They rely on their distributors for the distribution of TMT Bars with whom they do not have any exclusive formal arrangement. Any significant loss of their distribution network or failure by their distributors to effectively sell or market their products could have an adverse impact on their business, results of operations, and financial condition.
  
• Their business is dependent and will continue to depend on their manufacturing facility, and they are subject to certain risks inherent in the steel manufacturing process.
  
• They do not have an information security and disaster recovery system in place. Further any failure or disruption of their IT systems may adversely affect their business, results of operations and financial condition
  
• Changing laws, rules and regulations and legal uncertainties, including reduction in import duties on steel, adverse application of corporate and tax laws, may adversely affect the business, results of operations and prospects.
  

*To be included in respect of our Company in the Prospectus based on the Issue Price

Notes:

1. Basic Earnings per Equity Share (₹) = Net profit after tax of the Company, as restated / Weighted average no. of Equity Shares outstanding during the year
   

2. Diluted Earnings per Equity Share (₹) = Net Profit after tax of the Company, as restated / Weighted average no. of potential Equity Shares outstanding during the year
   

3. Net Asset Value per Equity Share = Net worth divided by the outstanding number of equity shares outstanding at the end of the year, after considering impact of bonus issuance on June 22, 2024.
   

4. P/E Ratio has been computed based on the closing market price of the equity shares (Source: NSE/BSE) on August 11, 2025, divided by the EPS of March 31, 2025.
   

5. Return on Net worth (%) = Restated Profit for the year as a percentage of the Net worth as at the end of the year.
   

6. All the financial information for listed industry peers mentioned above is on a standalone basis and is sourced from the financial statements for the financial year ended March 31, 2025 submitted to the Stock Exchange or published in their websites.
   

7. The information for our Company is based on the Restated Financial Information as at and for the financial year ended March 31, 2025.
   

Anchor Investor Information

The Anchor Investor Bidding Date is Tuesday, September 16, 2025*

*Our Company may, in consultation with the Book Running Lead Manager, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issue Opening Date

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Arihant Capital Markets Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through manufacturing TMT bars from iron billets manufactured through their reheating furnace and rolling mill. They also sell iron billets and binding wire incidental to their TMT bars business.

Company Growth Trajectory

As of 31 March FY2025, the company’s Total Income was ₹771.408 crores, compared to ₹873.169 crores in FY2024. The company’s Profit After Tax was ₹14.737 crores in FY2025 compared to ₹13.4684 crores in FY2024. Their EBITDA was ₹45.526 crores in FY2025 compared to ₹41.203 crores in FY2024.

Company Market Position

As of March 31, 2025, the company’s Total Income, Profit After Tax, and EBITDA stood at ₹771.408 crores, ₹14.737 crores, and ₹45.526 crores, respectively.

How To Check Allotment Status of VMS TMT Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
  
• Click on “Investor Services” and choose “Application Status Check”
  
• Choose the issue type — Equity or Debt (Equity in this case)
  
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is VMS TMT Limited
  
• Enter your application number or PAN number
  
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
  

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
  
• Choose “Public Issues” from the “Investor Services” drop-down
  
• Select VMS TMT Limited from the drop-down
  
• Enter your PAN number or Application number
  
• Click on “Submit” to know the allotment status
  

How to apply for VMS TMT India Limited?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
  
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
  
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
  
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
  
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI