By the close of the second day, the IPO had been oversubscribed 21.75 times, driven mainly by enthusiastic participation from retail investors and non-institutional investors (NIIs), indicating robust confidence in the company’s prospects.
VMS TMT IPO GMP Today
As of today, the grey market premium (GMP) for VMS TMT stands around Rs 15, indicating positive market sentiment ahead of the listing. This suggests a likely listing price near Rs 116.Note: GMP is an unofficial and informal market indicator and is not regulated by any authority. Investors should exercise caution and not rely solely on GMP for decision-making.
VMS TMT IPO Subscription Status (Day 2)
According to stock exchange data, the IPO saw robust subscription across all investor categories:Retail Individual Investors (RIIs): The retail segment was highly enthusiastic, subscribing 18.98 times their allocated quota of 75 lakh shares.Non-Institutional Investors (NIIs): Demand from high-net-worth individuals and other NIIs was particularly strong, with subscriptions reaching 37.25 times the 30 lakh shares reserved.
Qualified Institutional Buyers (QIBs): Institutional investors also showed significant interest, with the QIB portion subscribed 7.47 times against the 18 lakh shares allotted.
VMS TMT IPO details
The company is launching a new issue of 1.5 crore equity shares, targeting to raise up to Rs 148.5 crore at the upper price band. Retail investors can place bids starting from 150 shares and in multiples thereafter, with a minimum investment of Rs 14,850 at the highest price.
Approximately 50% of the issue is allocated to Qualified Institutional Buyers (QIBs), 35% to retail investors, and the remaining portion to Non-Institutional Investors (NIIs). The shares are set to be listed on both the NSE and BSE on September 24.
VMS TMT IPO Timeline
The VMS TMT IPO was open for subscription from Wednesday, September 17, 2025, to Friday, September 19, 2025. The tentative date for share allotment is Monday, September 22, 2025, with the shares expected to be listed on Wednesday, September 24, 2025.
Company Overview
VMS TMT specializes in manufacturing Thermo Mechanically Treated (TMT) bars, widely used in construction and infrastructure development. While the company also deals in billets, binding wires, and scrap, TMT bars account for nearly 95% of its total revenue. Its manufacturing plant is located in Bhayla village near Ahmedabad, with an annual production capacity of 200,000 metric tonnes.
Market Presence and Recent Developments
Operating under the Kamdhenu brand, VMS TMT distributes its products throughout Gujarat—excluding the Saurashtra and Kutch regions—via a network of three distributors and 227 dealers. To improve profit margins and reduce dependency on billet suppliers, the company has recently launched a Continuous Casting Machine (CCM) division, enabling direct production of TMT bars from scrap.
Financial Performance
VMS reported revenues of Rs 771 crore in FY25, a decline from Rs 873 crore in FY24. Despite this, the company’s profitability improved markedly, with profit after tax increasing from Rs 4.2 crore in FY23 to Rs 14.7 crore in FY25. EBITDA margins also saw a significant rise, reaching 5.9% in FY25 compared to 2.5% in FY23.
For the quarter ended June 30, 2025, VMS recorded revenue of Rs 213 crore, EBITDA of Rs 19.5 crore, and a net profit of Rs 8.6 crore.
Utilization of IPO Funds
The funds raised through the IPO will primarily be used to prepay or repay borrowings amounting to Rs 115 crore, with the remaining amount earmarked for general corporate purposes.
Should you subscribe?
Analysts have advised subscribing to this IPO with a long-term perspective, noting that the issue appears to be priced aggressively. Kunvarji Wealth Solutions stated, “The company has demonstrated healthy profitability, supported by consistent operational excellence and a strong distribution network in Gujarat. With increasing construction activity, VMS TMT is well-positioned to capitalize on robust demand across sectors.”
Leading brokerage firms such as Ventura Securities, BP Wealth, Marwadi Financial Securities, SMIFS, and Kunvarji Wealth Advisors have all assigned a “Subscribe” rating to the IPO. They highlight VMS TMT’s strong retail-driven model, extensive dealer network, and brand recognition under Kamdhenu Limited. Additionally, backward integration through billets production and the operation of a 15 MW solar power plant are expected to boost efficiency and margins. Financial performance has steadily improved, with EBITDA margins increasing to 5.91% and PAT margins reaching 1.91% in FY25.
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