Upcoming IPO: VMS TMT IPO to hit Dalal Street on September 17

VMS TMT IPO

Gujarat-based thermo mechanically treated steel bars maker VMS TMT has filed red herring prospectus with the Registrar of Companies to launch its initial public offering next week on September 17.

The IPO comprises of entirely fresh issue of 1.5 crore equity shares, hence the entire net offer proceeds will be received by the company.

The IPO anchor book for institutional investors will be launched on September 16, while the offer will close subscription for all investors on September 19.

The company will finalise IPO share allotment by September 22 and make its debut on the bourses on September 24.

VMS TMT, which predominantly operates in Gujarat and markets its products under the Kamdhenu brand, proposes to utilise Rs 115 crore of IPO proceeds for repayment of certain borrowings. And the remainder funds will be used for general corporate purposes.

As of June this year, the total borrowings amounted to Rs 261.7 crore, the company said.

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It has reserved half of offer size for retail investors. Further, 30 percent of the portion is set aside for qualified institutional buyers and the balance 20 percent shares of the issue for non-institutional investors.

The company manufactures TMT bars from scrap and billets at its manufacturing facility in Bhayla Village, Ahmedabad, with installed capacity of 2 lakh metric tonnes per annum.

VMS TMT reported mixed financial performance in the financial year 2024-25 with profit growing 14.5 percent to Rs 15.4 crore but revenue falling 11.8 percent to Rs 770.2 crore compared to previous year.

The company had filed draft papers for IPO on March 27 this year, which were cleared by the SEBI on July 21 this year.

Arihant Capital Markets is acting as the sole book running lead manager for the VMS TMT IPO.