VMS TMT refiles IPO papers, plans to fund raising for debt reduction

VMS TMT IPO

VMS TMT, which manufactures thermo mechanically treated steel bars, has refiled draft red herring prospectus with the SEBI to raise funds for debt reduction. TMT Bars are high-strength reinforcement steel used widely in the construction industry.

The IPO will consist of an entirely fresh issue of 1.5 crore equity shares, as per the draft papers filed on March 27, 2025.

Earlier, on September 27, 2024, the company had filed draft papers for the same IPO size, but later, on October 23, it withdrew that draft document.

The Gujarat-based company plans to utilise Rs 115 crore out of net IPO proceeds for repaying debt and the remainder for general corporate purposes.

Its total debt on the books as of December 2024 amounted to Rs 160.2 crore.

Promoters hold a 96.28 percent stake in VMS TMT. The remaining 3.72 percent shares are owned by public shareholders, including Chanakya Opportunities Fund I and Kamdhenu.

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The company has a retail licence agreement with Kamdhenu Limited, which allows it to market TMT Bars under the Kamdhenu brand on mutually agreed terms within Gujarat on a non-exclusive basis.

The sole book running lead manager appointed for handling the public issue is Arihant Capital Markets.