VMS TMT IPO

Company Overview:

Incorporated in 2013, VMS TMT Limited is primarily engaged in the manufacturing of Thermo Mechanically Treated Bars (TMT Bars). Alongside, the company also trades in scrap and binding wires, catering to customers across Gujarat and other states.

The company’s manufacturing facility is strategically located at Bhayla Village, near Bavla (Ahmedabad district, Gujarat), ensuring smooth logistics and easy distribution within its core markets. As of July 31, 2025, VMS TMT Limited operates through a non-exclusive distribution model, comprising 3 Distributors & 227 Dealers. The company entered into a retail license agreement with Kamdhenu Limited, allowing it to market TMT Bars under the ‘Kamdhenu NXT’ brand within Gujarat on mutually agreed terms. This collaboration enhances brand visibility and customer trust.

Objects of the Issue:

• Payment of Borrowings: ₹115 Cr

• General Corporate Purposes: ₹33.5 Cr

Strengths:

• Annual production capacity of 200,000 MT, with significant utilization in FY24.

• Over 98% revenue from Gujarat operations, indicating strong regional dominance.

• Strategic partnership with Kamdhenu Limited enabling sales under the trusted Kamdhenu NXT brand.

• Plans to manufacture billets in-house, reducing dependence on external suppliers and improving margins.

• Strong distribution base with 230+ channel partners across Gujarat.

• Location advantage due to manufacturing plant proximity to key markets in Gujarat.

• Favorable industry outlook driven by infrastructure growth and real estate demand in India.

Risks:

• High geographic concentration: More than 98% of revenue from Gujarat, making the company vulnerable to regional slowdowns.

• Raw material dependency: Reliance on third-party suppliers for billets and scrap may affect production continuity.

• Volatility in steel/TMT prices could directly impact margins and profitability.

• Brand dependency: Heavy reliance on the Kamdhenu brand; any change/termination of licensing agreement may weaken market positioning.

• Working capital intensive business, requiring high liquidity to maintain operations.

• Exposure to cyclical industries like construction and real estate, making revenue vulnerable to economic cycles.

• Competition from large integrated steel players with deeper pockets and stronger nationwide networks.

VMS TMT IPO: Key Details

• IPO Dates: 17 – 19 September 2025

• Price Band: ₹94 – ₹99 per share

• Lot Size: 150 shares

• Total Issue Size: ₹148.5 Cr

• Retail Quota: 61%

• GMP (for reference only): ~18%
  

Allotment Link

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