Promoter Rishabh Sunil Singhi will increase his shareholding in VMS TMT Limited by acquiring 13,22,164 equity shares through an inter-se transfer. The acquisition, representing 2.66% of the company's share capital, is scheduled to take place on or after June 17, 2026. The shares are being transferred from Varun Manojkumar Jain, another promoter of the company, at a price of ₹45 per share.

The transaction is being undertaken pursuant to Regulation 10(1)(a)(ii) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation provides a general exemption for inter-se transfers amongst promoters or the promoter group, thereby waiving the requirement for a mandatory open offer. The acquirer has confirmed compliance with all conditions specified under the relevant regulation.

The acquisition price of ₹45 per share is not higher than 25% of the volume weighted average market price (VWAP). The VWAP for the 60 trading days preceding the notice was approximately ₹44.19 on the National Stock Exchange of India Limited, where the maximum volume of trading in the company's shares was recorded.

Following the proposed transaction, the shareholding structure of the promoters will undergo a reallocation. Rishabh Sunil Singhi's individual holding will increase from 24.21% to 26.87%, while the holding of Varun Manojkumar Jain will decrease from 17.13% to 14.46%. The total shareholding of the acquirer and persons acting in concert (PACs), excluding the sellers, will rise from 50.06% to 52.72%.

Shareholding Details

The equity shares proposed to be transferred are subject to lock-in under applicable SEBI regulations. The transferee will hold the shares subject to the residual lock-in period. The acquisition is expected to be completed not earlier than four working days from the date of the intimation.

VMS TMT Limited reported a net profit of INR21 crores for the financial year ended March 31, 2026 (FY26), driven by improved plant utilization and integration benefits. The company delivered a strong performance in Q4FY26, supported by stable demand across retail and institutional segments. Management highlighted that the integration of the billet manufacturing facility has reduced raw material costs by approximately INR1,500 per ton, contributing to margin expansion.

Financial Performance

For Q4FY26, the company recorded a total revenue of INR241 crores and a net profit of INR2.29 crores. The full-year revenue stood at INR840 crores, with an EBITDA of INR62.31 crores. The Q4 EBITDA was reported at INR11.94 crores. The company operates as an integrated manufacturer of TMT bars and billets, marketing its products under the Kamdhenu brand in Gujarat.

Key Financial Metrics (FY26)

Operational Updates and Future Outlook

The company has ceased procuring billets from the external market, relying entirely on in-house manufacturing from scrap procured globally. This shift has eliminated reheating costs of approximately INR1,500 to INR2,000 per ton. VMS TMT is currently executing a 15 megawatt captive solar power project with an estimated investment of INR45 crores to INR50 crores. Commissioning for 12 megawatts is expected to begin in the current month, with the remaining 3 megawatts to follow in two months.

Management anticipates annual cost savings of approximately INR5 crores from the solar plant, translating to a saving of INR3 per unit on power bills. The company maintains a capacity utilization level of 70.00% to 75.00% for both its billet and TMT manufacturing facilities. With a focus on optimizing production and strengthening its distribution network, VMS TMT aims to sustain growth driven by infrastructure and housing sector demand in Gujarat.