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VMS TMT Limited debuted on the Indian stock market on September 24, 2025, with a premium listing of its issue price. The share price of the steel manufacturer based in Gujarat opened at Rs. 104.90 on NSE and Rs. 105 on BSE. This marked a 5.96% gain and a 6.06% gain, respectively, compared to the IPO price of Rs. 99.
The debut, while positive, was lower than market expectations. Grey market trends were suggesting a higher premium of around 11% with listing expected to close at around Rs. 110 per share.
The Rs. 148.50 crore IPO was strongly subscribed by investors, seeing a 102.24x overall subscription. The issue, open from September 17 to 19, comprised an entirely fresh issue of 1.50 crore equity shares with a lot size of 150 shares, requiring a minimum investment of Rs. 14,850.
Investor interest was particularly strong among non-institutional investors, who subscribed 227.08 times their quota. Qualified institutional buyers (QIBs) subscribed 120.80 times, while the retail category was booked 47.85 times. Ahead of the issue, the company had already mobilized Rs. 26.73 crore from anchor investors.
The funds raised by IPO will primarily go towards repaying Rs. 115 crore in borrowings. The listing is also designed to improve the company’s visibility, enhance its brand image, and create a market for its publicly traded equity.
Investors who were allotted a price of Rs. 104.90 at NSE saw the value of their investment in a lot of 150 shares grow to Rs. 15,735 (the allotment price was Rs. 14,850). A gain of Rs. 885 per lot.
VMS TMT Limited, established in 2013, is a producer of thermo-mechanically treated (TMT) bars crucial raw material for the construction and infrastructure industry, as well as trading in scrap and binding wires, servicing its clients in Gujarat and beyond.
Its manufacturing plant is strategically located in Bhayla Village, near Bavla in Ahmedabad district, providing logistical advantages for distribution.
The company reported a profit after tax of Rs. 15.41 crore for the financial year ending March 31, 2025, an increase of 14.48% from Rs. 13.46 crore in FY24. But revenue declined by 11.77% year-on-year to Rs. 770.19 crore from Rs. 872.95 crore in FY24, emphasizing margin resilience during a weak top-line performance.
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While the initial listing premium was modest compared to the grey market estimates, the overwhelming subscription shows strong investor confidence in VMS TMT’s growth prospects. The company plans to reduce its debt in the near term and benefit from an increase in infrastructure demand in the long term.
