VMS TMT IPO: A Comprehensive Guide to Upcoming IPO with High Hopes

Published On: 14/09/20252.1 min read

VMS TMT IPO: A Comprehensive Guide to Upcoming IPO with High Hopes

Introduction

The VMS TMT IPO is one of the most anticipated initial public offerings in the Indian market, offering investors a chance to participate in the growth of the robust construction sector. With a price band set between ₹94 to ₹99 per share, this Mainline IPO has generated significant interest among retail and institutional investors alike.

Company Overview

Founded in 2013, VMS TMT is headquartered in Ahmedabad, Gujarat. The company specializes in manufacturing Thermo Mechanically Treated (TMT) bars, which are integral to the construction industry due to their strength and seismic resistance. The business model focuses on producing high-quality steel, ensuring compliance with industry standards.

  • Year Founded: 2013
  • Industry: Steel Manufacturing
  • Business Model: Production of TMT bars
  • Founders: Varun Manojkumar Jain, Rishabh Sunil Singhi, Manojkumar Jain, Sangeeta Jain

In FY 2023, VMS TMT reported revenue exceeding ₹500 crores, reflecting a steady growth trajectory.

IPO Details

  • IPO Type: Mainline
  • Issue Size: ₹148.5 crores
  • Price Band: ₹94 – ₹99 per share
  • Lot Size: 150 shares
  • GMP: Set to be determined closer to the opening date
  • Open Date: September 17, 2023
  • Close Date: September 19, 2023
  • Listing Date: September 24, 2023

IPO Objectives

  • Repayment of borrowings
  • General corporate purposes

Pre-IPO Placements

The Major investors in VMS TMT include founders and key managerial personnel empowering the company with committed capital.

Financial Highlights

  • FY 2021: Revenue – ₹199.39 crores, PAT – ₹0.56 crores
  • FY 2022: Revenue – ₹393.32 crores, PAT – 2.23 crores
  • FY 2023: Revenue – ₹493.73 crores, PAT – ₹6.88 crores

Peer Comparison

VMS TMT competes with industry leaders like JSW Steel and Tata Steel.

  • P/E Ratio: Competitive when compared to peers
  • Market Cap: Anticipated growth upon listing
  • ROE: To be reviewed post-listing

Strengths

  • Strong management team with industry experience
  • High-quality product offerings that meet industry standards

Risks

  • Heavy reliance on the Gujarat market increases vulnerability to regional economic conditions.
  • Dependence on third-party suppliers for raw materials.

Expert Verdict

The VMS TMT IPO has a compelling value proposition for investors looking for exposure in the construction sector, especially given its focus on quality production.

Subscription Status

The IPO will open for bids on September 17, 2023, and will close on September 19, 2023. Historical data shows high interest among retail investors, and the saturation levels will be updated closer to the opening date.

Allotment & Listing Timeline

  • Allotment Date: September 22, 2023
  • Listing Date: September 24, 2023

FAQs

  • Q: How can I apply for VMS TMT IPO? A: You can apply through your bank or a brokerage service.
  • Q: What is the minimum investment required? A: The minimum investment for retail is ₹14,850.

How to Apply

To apply for the VMS TMT IPO, you can visit this link for details.

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