VMS TMT IPO Listing: Shares debut at a premium of 6% to issue price

The shares of TMT bars manufacturer VMS TMT Ltd. made its debut on stock markets on Wednesday, September 24, after closing its ₹148-crore IPO on September 19.

The stock listed at a premium of 6% on both NSE and BSE, opening at ₹105 on BSE and ₹104.90 on NSE.

Ahead of its debut, the stock quoted a grey market premium (GMP) of 11.11%, which suggested a decent listing pop for investors.

The IPO of VMS TMT garnered a whopping 102.26 times subscription on the closing day of share sale, driven by strong investors' participation.

The category for non-institutional investors fetched 227.09 times subscription. Qualified institutional buyers portion received 120.80 times subscription and retail individual investors (RIIs) quota got booked 47.88 times.

The IPO had a price band of ₹94-99 for its maiden public issue, which included entirely a fresh issue of 1.50 crore equity shares.

VMS TMT already raised nearly ₹27 crore from anchor investors, ahead of the issue opening.

Proceeds from the fresh issue to the tune of ₹

115 crore will be used for repayment of debt and balance for general corporate purposes and issue expenses.

Incorporated in 2013, VMS TMT Ltd is primarily engaged in the manufacturing of thermo-mechanically treated bars (TMT Bars).

The company also deals in scrap and binding wires, which are sold within Gujarat and other states.

VMS TMT's profit climbed to ₹268 crore in FY25 from just ₹13.5 crore in FY24, even as revenue moderated to ₹770 crore from ₹873 crore. EBITDA margins improved sharply to nearly 39% in FY25 from under 5% in FY24.