VMS TMT IPO GMP rises to 23% as subscription crosses 8 times on Day 1

VMS TMT IPO GMP rises to 23% as issue sees robust subscription.

VMS TMT IPO GMP rose to 23 percent on September 17 as the Rs 148.5-crore mainboard issue opened for public subscription in the primary market. The price band for the offer, which comprises of entirely fresh issue, has been fixed at Rs 94-99 per share.

Earlier, the Gujarat-based company raised Rs 26.73 crore from five institutional investors via anchor book on September 16.

According to platforms tracking the grey market activities, the shares of TMT bars manufacturer VMS TMT are commanding a GMP of over 23 percent in the grey market. Investorgain quoted a GMP of Rs 23 for the shares of the company, indicating a listing gain of 23.23 percent.

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The initial public offer of VMS TMT got subscribed 8.4 times on the first day of bidding on Wednesday. The IPO received bids for 10.32-crore shares against 1.23-crore shares on offer, according to the NSE data.

The portion for non-institutional investors got subscribed 13.78 times, and the Retail Individual Investors (RIIs) part received 6.56 times subscription. The Qualified Institutional Buyers (QIBs) quota was subscribed 7.09 times.

VMS TMT intends to utilise Rs 115 crore of net IPO funds for repaying partial debt against the total outstanding borrowings of Rs 261.7 crore, and the remainder offer proceeds will be used for general corporate purposes.

The company manufactures thermo mechanically treated bars (TMT bars) at Bhayla plant in Ahmedabad. It also earned some revenue by selling scrap, binding wires and billets.

The public issue will close on September 19, while its equity shares will list on the bourses on September 24.

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