| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 94 to ₹ 99 | 150 | 17th Sep, 2025 –19th Sep, 2025 | ₹148.50 Cr |
VMS TMT Ltd
VMS TMT Ltd. is engaged in the manufacturing of Thermo Mechanically Treated (TMT) Bars, a high-strength reinforcement steel widely used in the construction industry for its exceptional strength, ductility, and corrosion resistance. The company’s operations are primarily conducted in the State of Gujarat (excluding the Saurashtra and Kutch districts), from where it generates more than 95% of its revenue from retail as well as institutional sales. Under a retail license agreement dated November 7, 2022, with Kamdhenu Limited, the company markets its TMT Bars under the Kamdhenu brand on mutually agreed terms within Gujarat on a non-exclusive basis. In addition, it sells scrap and binding wires both within Gujarat and to other states. The company focuses on Tier II and Tier III cities for the sales of its TMT Bar through a non-exclusive distribution network comprising 3 distributors and 227 dealers as of July 31, 2025. Gujarat is divided into three zones, namely central, north, and south, with one distributor in each zone to optimize market penetration, service delivery, and operational efficiency. VMS continuously seeks to expand its presence by appointing new distributors and dealers to strengthen its distribution network across diverse regions and customer segments. The company has an annual installed production capacity of 200,000 metric tonnes (MT) of TMT Bars, and production of TMT Bars in the three-month period ended June 30, 2025. Its products meet the standards set by the Bureau of Indian Standards (BIS), and the company holds several quality management certifications, including ISO 9001:2015 for quality management standards, ISO 45001:2018 for occupational health and safety management system standards, and ISO 14001:2015 for environmental management system standards. VMS believes that consistently maintaining high-quality standards is vital to its long-term growth.
Objective of the VMS TMT Ltd IPO
The net proceeds are proposed to be used in accordance with the following:
- Repayment/ prepayment, in full or part, of all or a portion of certain borrowings availed by the company;
- General corporate purposes.
Rationale To VMS TMT Ltd IPO
Backward integration and strong logistics support enhance efficiency and margins
VMS TMT Ltd. manufactures TMT Bars through a thirty-ton induction furnace in a continuous casting machine (CCM) and rolling mill, and also from billets through its reheating furnace and rolling mill. In September 2024, the company completed the backward integration of its CCM division, enabling it to produce TMT Bars directly from scrap and thereby reducing its dependency on billet from suppliers. Before this integration, billets were the primary raw material for TMT Bar production, sourced largely from domestic markets across Gujarat, Chhattisgarh, Maharashtra, Madhya Pradesh, Odisha, and Rajasthan. At present, the company’s key raw materials include scrap, manganese, non-coking coal, dolomite, limestone, and bentonite. With the commencement of the CCM division, scrap has become its primary raw material, which it plans to source primarily from overseas and also directly from the domestic market. Procuring raw materials locally helps lower transportation costs and delivery time, and keeps inventory levels under control. This backward integration strategy delivers multiple operational benefits, including cost savings, higher process efficiency, and enhanced quality control. By reducing its dependence on external billet procurement, the company mitigates risks related to price volatility, supply chain disruptions, and inconsistent raw material quality. VMS TMT’s business is significantly dependent on efficient supply chain management. The company has established strong supplier relationships in Gujarat and purchases most of its raw materials locally. For product delivery, it uses a fleet of over 50 trucks provided by a third-party transportation and logistics provider. The company believes its doorstep delivery to retail customers provides a significant competitive edge. These initiatives are aligned with VMS TMT’s long-term vision of sustainable and efficient manufacturing, aimed at ensuring better margins, operational stability, and scalable growth opportunities.
Integration of renewable energy into the energy mix a key for cost optimization and sustainability
With the installation of a thirty-ton electric induction furnace, VMS TMT’s power requirement has risen significantly from 4 MW to 22 MW, making electricity one of the most critical operational expenses in its TMT Bar manufacturing. Currently, the company meets its power requirements through the state power grid, supplied by Uttar Gujarat Vij Company Limited. However, the rising cost of electricity has necessitated a strategic shift toward renewable energy to manage costs better and ensure long-term sustainability. Apart from scrap, the company’s major cost of production involves power expenses. To reduce this burden, VMS TMT has initiated the setup of a 15 MW solar power plant in Gujarat for its captive consumption. For this purpose, it entered into an MoU dated August 22, 2024. An addendum to the MOU dated September 10, 2025, with Prozeal Green Energy Limited (Prozeal) pursuant to which Prozeal has arranged and the company has taken on lease a specific parcel of land from third parties for the development of a solar project. This initiative is a key part of the company’s broader energy optimisation strategy, which aims to lower operational costs while reducing dependence on conventional power sources. The company plans to expand its solar capacity in a phased manner to meet its full power requirements. By gradually increasing the share of solar power in its overall consumption, the company aims to improve cost efficiency and strengthen its long-term competitiveness.
Valuation of VMS TMT Ltd IPO
VMS TMT Ltd. manufactures TMT Bars in the steel industry and markets them under the “Kamdhenu” brand. India’s domestic consumption of TMT Bars has been rising steadily, driven by strong momentum in the construction and infrastructure sectors. Consumption has expanded from about 41.6 million tons in FY21 to an estimated 62.5 million tons in FY25, registering a healthy CAGR of around 10.7% during this period. This sharp rise highlights the critical role of TMT Bars in supporting demand generated by large-scale infrastructure investments, rapid urbanization, and sustained growth in both residential and commercial real estate projects. Domestic demand for TMT Bars is expected to continue rising, supported by the government’s focused efforts to strengthen the nation’s infrastructure. VMS TMT is well-positioned to take advantage of this demand growth. The company’s backward integration of its CCM division has enhanced cost and process efficiency while improving quality control. In addition, its strong logistics network helps reduce supply chain disruptions. By lowering dependence on external sources, the company also minimizes risks associated with inconsistent quality and price volatility. These measures contribute to improved margins and scalable growth. Since power is one of its major production costs, the company has also initiated the setup of a solar power plant for captive consumption, which is expected to gradually improve cost efficiency. On the financial front, the company has demonstrated strong growth momentum, with both EBITDA and net profit delivering robust double-digit growth during the FY2023-25 period. EBITDA grew at a CAGR of 44.2%, while net profit registered a significant CAGR of 91.7% over the same period. On the upper price band, the issue is valued at a P/E ratio of 22x based on FY25 earnings, which is higher compared to its peers. However, considering the company’s strong financial position and favourable market conditions, we recommend a “SUBSCRIBE” rating for this issue.
What is the VMS TMT Ltd IPO?
The initial public offer (IPO) of VMS TMT ltd offers an early investment opportunity in VMS TMT Ltd . A stock market investor can buy VMS TMT Ltd IPO shares by applying in IPO before All VMS TMT Ltd shares get listed at the stock exchanges. An investor could invest in VMS TMT Ltd IPO for short term listing gain or a long term.
How to apply for the VMS TMT Ltd IPO through StoxBox?
To apply for the VMS TMT Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the VMS TMT Ltd IPO open?
VMS TMT Ltd IPO is opening on 17th Sep 2025. Apply Now
What is the lot size of the VMS TMT Ltd IPO?
The Lot Size of VMS TMT Ltd IPO is 150 equity shares. Login to your account now.
When is the VMS TMT Ltd allotment date?
The allotment Date for VMS TMT Ltd IPO is 22nd Sep 2025. Login to your account now.
When is the VMS TMT Ltd IPO listing date?
The listing Date for VMS TMT Ltd IPO is 24th Sep 2025. Login to your account now
What is the minimum investment required for the VMS TMT Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,850. Login to your account now
What is the maximum investment allowed for the VMS TMT Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,93,050. Login to your account now
What are the risks associated with investing in the VMS TMT Ltd IPO?
- The company is dependent on a retail licence agreement with Kamdhenu Ltd. for the sale of TMT bars, and the agreement is non-exclusive in nature. It has certain restrictions and obligations, such as minimum sales quotas, branding guidelines, packaging, and royalty payments. If this agreement with Kamdhenu Ltd. is terminated, the company may face difficulties in retaining its network of distributors and dealers, which could materially and adversely impact its business, results of operations and financial condition.
- The company does not have long-term arrangements with any of its customers, distributors or dealers. Any termination of any of its current arrangements with the customers, distributors or dealers could materially and adversely affect the business, results of operations and financial condition.
- The company’s manufacturing facility and sales are concentrated in Gujarat, India, where it derived more than 95% of its revenues from operations. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat could adversely affect its business, results of operations and financial condition.
When will the VMS TMT Ltd IPO shares be credited to my Demat account?
The VMS TMT Ltd IPO be credited to the account on allotment date which is 23rd Sep 2025. Login to your account now
Where can I find the VMS TMT Ltd IPO prospectus?
The prospectus of VMS TMT Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
