VMS TMT Announces IPO: Price Band Set at Rs 94-99 per Share
VMS TMT, an Ahmedabad-based TMT bar manufacturer, has set its IPO price band at Rs 94-99 per share, aiming to raise Rs 148.50 crore through 1.5 crore fresh shares. The IPO opens on September 17 and closes on September 19, with listing planned for September 24 on BSE and NSE. The company intends to use Rs 115 crore for debt repayment and the remainder for general corporate purposes. VMS TMT, founded in 2013, reported mixed financial results with a revenue of Rs 771.41 crore and profit after tax of Rs 15.42 crore in FY25. The company's high debt-to-equity ratio of 6.06 indicates significant leverage.
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VMS TMT, an Ahmedabad-based TMT bar manufacturer, has announced its Initial Public Offering (IPO) with a price band set at Rs 94-99 per share. The company aims to raise Rs 148.50 crore through the issuance of 1.5 crore fresh shares.
IPO Details
- Price Band: Rs 94-99 per share
- Issue Size: 1.5 crore fresh shares
- Total Fundraise: Rs 148.50 crore
- Issue Opens: September 17
- Issue Closes: September 19
- Listing Date: September 24
- Listing Venues: BSE and NSE
Fund Utilization
The company plans to utilize the IPO proceeds as follows:
- Rs 115 crore for repayment of borrowings
- Remaining amount for general corporate purposes
Company Background
Founded in 2013, VMS TMT specializes in manufacturing TMT bars for the construction industry. The company operates under a retail license with Kamdhenu Ltd for the 'Kamdhenu NXT' brand in Gujarat.
Financial Performance
VMS TMT's recent financial performance shows mixed results:
| Fiscal Period | Revenue (Rs crore) | Profit After Tax (Rs crore) |
|---|---|---|
| FY25 | 771.41 | 15.42 |
| Q1 FY26 | 213.39 | 8.58 |
The company's revenue decreased by 12% year-on-year in FY25. However, the profit after tax improved by 14% during the same period.
Financial Position
As of March 31, 2025, VMS TMT's financial position indicates high leverage:
- Total Borrowings: Rs 309.18 crore
- Debt-to-Equity Ratio: 6.06
The high debt-to-equity ratio suggests significant reliance on borrowed funds, which the company aims to address partially through the IPO proceeds.
Investors interested in the VMS TMT IPO should carefully consider the company's financial performance, market position, and the risks associated with the high leverage before making an investment decision.
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