VMS TMT IPO: Price Band, Analysis, Allotment And GMP

VMS TMT IPO - Company Analysis

VMS TMT IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 148.50 Cr (~1.50 crore Shares) by VMS TMT Ltd., which was incorporated in 2013. The main activity of the company is the production of Thermo Mechanically Treated Bars (TMT Bars).  Additionally, the company sells binding wires and scrap to customers in Gujarat and other states.

The company's production plant is ideally situated in Gujarat's Ahmedabad.

 

Network of Distribution:

227 dealers and three distributors.

Retail licensing Agreement: Kamdhenu Limited and VMS TMT Limited signed a retail licensing agreement on November 7, 2022. Under the terms of this agreement, the company is permitted to market its TMT bars in the State of Gujarat under the Kamdhenu NXT brand.

 

VMS TMT IPO Details

The VMS IPO open date is from Sep 17 to Sep 19, with IPO allotment on Sep 22, refund initiation on Sep 23, 2025.

The Rs. 148.50 Cr mainline IPO comprises a fresh issue of 1.50 crore shares.

The VMS TMT IPO listing date might be on Wednesday, 24 September 2025, and it will be listed at the BSE and NSE. The VMS TMT IPO price band is Rs. 94 to Rs. 99 for each Share. 

Events	Date
IPO Opening Date	Sep 17, 2025
IPO Closing Date	Sep 19, 2025
IPO Allotment Date	Sep 22, 2025
Refund Initiation	Sep 23, 2025
Tentative IPO Listing Date	Sep 24, 2025

VMS TMT IPO- Hidden Facts

1. Strong Reliance on the Kamdhenu Brand

TMT bars are marketed by VMS TMT under the Kamdhenu NXT trademark. With a minimum monthly payment of Rs. 10 lakh, they pay Rs. 600 per MT plus GST royalty (Rs. 400 for project sales).

Kamdhenu has one month's notice to cancel the license, which is non-exclusive.

Implies that VMS TMT does not have complete control of the brand; if Kamdhenu withdraws, there is a risk.

2. Agreement on Regional Restriction

VMS TMT can only sell outside of Saurashtra and Kutch due to an agreement with Aditya Ultra Steel (a group firm). Aditya serves those areas. Thus, their growth in Gujarat is limited by geography.

3. High Group Dependency in Transactions and Loans

Heavy borrowing by VMS Industries Ltd. (group company): Rs. 3,659 lac in outstanding debt with a 7% payback rate due on demand

4. GST Dispute & Contingent Liabilities

A pending Rs. 64.68 lac GST claim.

Moreover, significant capital expenditures surpassing Rs. 5,600 lakh. Profitability may suffer if liabilities become apparent.

5. Gaps in Insurance

Incoming and departing materials (sales and purchase transport) are not insured, although plant assets are (about 96%) covered.

No key man insurance or Directors and Officers (D&O) liability insurance. Unknown risk in the event of mishaps, legal action, or management problems.

6. Weakness of Promoter Group: Defaulter Situation

Due to credit problems and the closure of a Maruti dealership, the promoter group company, Eternal Motors Pvt Ltd., entered liquidation and was deemed a willful defaulter.

Industry Outlook

India is expected to produce 145.3 million tons of finished steel in FY 2025, up from 102.6 million tons in FY 2020. This amounts to about a 7% CAGR.

If you want to apply for the IPO, click to open a Demat Account.

 

Company Financial 

(Amount in Cr)

Period	30 Jun 2025	31 Mar 2024	31 Mar 2023
Total Assets	449.35	284.23	227.28
Total Revenue	213.39	873.17	882.06
PAT	8.58	13.47	4.20
EBITDA	19.48	41.20	21.91
Net Worth	81.77	46.51	30.84
Reserves and Surplus	47.14	33.18	18.23
Total Borrowing	309.18	197.86	162.70

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	30 Jun 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	(2,241.88)	3,734.37	(1,134.76)
Net Cash Flow Investing Activities	(493.78)	(5,002.44)	(2,696.68)
Net Cash Flow Financing Activities	2,681.73	1,856.35	4,050.57

 

Revenue Bifurcation 

Product-wise Revenue Breakdown

 

Customer-wise Revenue Breakdown

 

Geography-wise Revenue Breakdown

(Source RHP)

 

The Objective of the Issue

• Full or partial repayment or prepayment of all or a portion of specific loans that the company has taken out. ~ Rs. 115 Cr.

• General corporate purposes.

Click to check the IPO application status.

 

Listed Peers of VMS TMT Ltd.

Company Name	Face Value (Rs. per Share)	EPS (Rs.)	P/E (x)
Kamdhenu Limited	10	2.18	13.50
Vraj Iron and steel limited	10	13.55	11.77
BMW Industries Limited	1	2.83	16.57
Electrotherm (India) Limited	10	336.42	2.37

 

Valuation

Metric	Value
Price to Book Value	7.43
RoNW	20.14%
ROCE	12.79%
Debt/Equity	6.06
PAT Margin	1.91%
EBITDA Margin	5.91%

 

 

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. 4.29 from the last year, the resulting P/E ratio is 23.07x. When compared with the industry’s average P/E of 9.47x, it indicates higher price bid (on a P/E ratio basis only). Hence, the price of the Share seems aggressively priced for the investors.

Explore the Shringar House of Mangalsutra IPO.

IPO's Strengths 

• Backward integration and established infrastructure.

• Reverse Integration.

• Robust Logistics & Supply Chain.

• Supply Chain Connections.

• Stability and Financial Growth.
  
  

IPO’s Weaknesses 

• Geographic concentration.

•  Limited Awareness of the brand outside of Gujarat.

•  Levels of Debt.

 

VMS TMT IPO GMP 

VMS TMT IPO GMP today is Rs. 10 as of 12 Sep 2025, while writing this information. Hence, the VMS TMT IPO listing price (estimated) might be Rs. 109 (upper price + current GMP or grey market premium).

 

VMS TMT Limited IPO Summary

IPO Opening & Closing Date	Sep 17, 2025 to Sep 19, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 94 to Rs. 99
Lot Size	150 Shares
Issue Size	1,50,00,000 Shares (Rs. 148.50 Cr)
Offer for Sale	-
Fresh Issue	1,50,00,000 Shares (Rs. 148.50 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

 

VMS TMT IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (150 Shares) amounting to Rs. 14850 and 13 Lots (1950 Shares) amounting to Rs. 193050, respectively, while for S-HNI investors, the minimum Lot is 14 (2100 Shares) amounting to Rs. 207900.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	67 Lots
BHNI (Minimum)	68 Lots

VMS TMT IPO Reservation

Institutional Share Portion	30%
Retail Investors' Share Portion	50%
Non-Institutional Shares Portion	20%

 

VMS TMT IPO Allotment Status

To check the VMS TMT IPO allotment status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using BSE Website - ​BSE IPO allotment status

 

Promoters And Management of VMS TMT Ltd.

• Varun Manojkumar Jain

• Rishabh Sunil Singhi

• Manojkumar Jain

• Sangeeta Jain. 

Pre-Issue Promoter Shareholding	96.28%
Post-Issue Promoter Shareholding	67.19%

 

VMS TMT IPO Lead Managers

• Arihant Capital Markets Ltd. 

 

Dividend Policy

The company has not paid a dividend during the last three years.

Conclusion

On the surface, the VMS TMT IPO could appear appealing, but the hidden risks reveal otherwise. Concerns are raised by a heavy reliance on Kamdhenu, regional limitations, and group loan dependence. Uncertainty is increased by pending GST claims and inadequate insurance coverage.  Before making a selection, investors need to consider these hidden realities.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.