VMS TMT Ltd IPO
Open Demat Account
VMS TMT Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 150 L | TBA | ₹ 75 L | ₹ 333.42 L | BSE | ₹ 148.5 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 17 Sep, 25 | 19 Sep, 25 | 150 | ₹ 14,100 | Book Building | 24 Sep, 25 |
VMS TMT Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Steel - Medium |
| Sub Sector | Small |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 48.32x | 4500000 | 217444650 |
| NII | 227.09x | 3000000 | 681281100 |
| Retail | 47.88x | 7500000 | 359113500 |
| Employee | 0x | 0 | 0 |
| Total | 83.86x | 15000000 | 1257839250 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
VMS TMT Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 26.21 | 23.23 | 9.12 |
| EBITDA | 33.02 | 27.16 | 12.70 |
| PAT | 14.74 | 13.47 | 4.20 |
| Total Assets | 231.48 | 142.04 | 131.86 |
| Share Capital | 34.63 | 13.34 | 12.61 |
| Total Borrowings | 245.04 | 148.47 | 119.23 |
| Operating Activities (Net Cash) | 21.55 | 17.40 | 7.78 |
| Investing Activities (Net Cash) | -0.06 | -51.68 | -3.61 |
| Financing Activities (Net Cash) | 245.04 | 148.47 | 119.23 |
| Net Cashflow | 11.01 | 8.09 | 2.20 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About VMS TMT Ltd
Our Company was incorporated as `VMS TMT Private Limited' a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation issued by the Registrar of Companies, Gujarat at Dadra Nagar and Haveli on April 9, 2013. The name of our Company was subsequently changed to `VMS TMT Limited', upon conversion into a public limited company, pursuant to a board resolution dated October 16, 2023, and a shareholder resolution dated November 10, 2023, and a fresh certificate of change of name was issued on December 1, 2023, by the Registrar of Companies, Gujarat at Ahmedabad.
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. Domestic demand for TMT bars is anticipated to rise significantly, driven by the government's focused efforts on enhancing the nation's infrastructure.
We are engaged in manufacturing of Thermo Mechanically Treated Bars (TMT Bars) in the steel industry at our manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. We conduct our business predominantly in the State of Gujarat from where we derived 98.93%, 96.71%, 98.75% and 97.42% of our revenues from operations in the three months period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Our revenue model is based on the sale of TMT Bars to customers through a distribution network, on a non-exclusive basis, comprising of 3 distributors and 227 dealers as of July 31, 2025. Additionally, we 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. As part of our business model, we serve a diverse customer base comprising both retail and institutional customers, primarily within the State of Gujarat, excluding the Saurashtra and Kutch district. We have a retail licence agreement dated November 7, 2022, with Kamdhenu Limited which allows us to market our TMT Bars under the Kamdhenu Brand on mutually agreed terms within the State of Gujarat excluding the Saurashtra and Kutch districts on a non-exclusive basis.
Peer Comparison:
- Kamdhenu Ltd
- Vraj Iron & Steel Ltd
- BMW Industries Ltd
- Electrotherm (India) Ltd
VMS TMT Ltd IPO Key Points
Strengths
- Improvement in financial performance consequent to implementation of backward integration project (CCM division).
- Positioned to take advantage of the steady growth in the steel bar and rods industry.
- Long-term customer relationships augmented by large distribution network.
- Established infrastructure with backward integration with strong logistics support.
- Track record of growth in financial performance.
Risk
- The company is dependent on a retail licence agreement with Kamdhenu Limited for sale of TMT bars and the agreement is non-exclusive in nature. Pursuant to this Agreement, the company has paid a royalty of Rs. 208.57 lakhs, Rs. 654.83 lakhs, Rs. 610.66 lakhs and Rs. 535.45 lakhs, respectively, representing 0.98%, 0.85%, 0.70% and 0.61% of its total revenue from operations for the three month period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The agreement has certain restrictions and obligations, such as minimum sales quotas, branding guidelines, packaging, and royalty payments. the company has derived 95.99%, 91.63%, 94.06% and 96.85% of its revenue from operations for the three month period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively from sale of TMT Bars and 100% of the revenue from such sale is only under Kamdhenu Brand. If the retail licence agreement with Kamdhenu Limited is terminated, the company is may face difficulties in retaining its network of distributors and dealers that distribute the company products, which could materially and adversely impact its business, results of operations and financial condition.
- Its business and profitability are substantially dependent on the availability and cost of the company raw materials and its dependent on third party suppliers for meeting the company raw material requirements which are on purchase order basis. its raw material's consumption accounted for 82.58%, 70.25% 87.86% and 96.63% of the company total expenses for the three months period ended June 30, 2025 and the Fiscals 2025, 2024 and 2023, respectively. Any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.
- Royalty payments under the company is agreement dated November 7, 2022, with Kamdhenu Limited may impact its profitability. the company has paid royalty of Rs. 208.57 lakhs, Rs. 654.83 lakhs, Rs. 610.66 lakhs and Rs. 535.45 lakhs, representing 0.98%, 0.85% 0.70% and 0.61%, of its total revenue from operations for the three month period ended June 30, 2025, and Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. Any increase in such royalty payments may adversely impact its business, results of operations, and financial condition.
Strategy
- Integration to Renewable Energy for Cost Optimization and Sustainability.
- Backward Integration for Cost Efficiency and Supply Chain Optimization.
- Diversifying into product portfolio.
- Market Penetration and Expansion Plan for TMT Bars in Gujarat.
- Improvement in financial performance consequent to implementation of backward integration project (CCM division).
- Positioned to take advantage of the steady growth in the steel bar and rods industry.
- Long-term customer relationships augmented by large distribution network.
- Established infrastructure with backward integration with strong logistics support.
- Track record of growth in financial performance.
How To Apply for VMS TMT Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.
