VMS TMT Ltd., an Ahmedabad-based manufacturer of TMT bars, witnessed a robust response to its Initial Public Offering (IPO) on the opening day. The Rs 148.50 crore IPO was oversubscribed 3.44 times within hours of its launch, showcasing strong investor interest across various categories.

IPO Details and Subscription Status

The book-building issue, comprising 1.5 crore fresh shares, is priced in the range of Rs 94-99 per share. The subscription breakdown across investor categories is as follows:

Grey Market Premium

The grey market is showing a positive sentiment towards the VMS TMT IPO, with a premium of Rs 23 per share. This indicates an estimated listing price of Rs 122, suggesting potential gains for investors if the trend holds.

Company Overview and Financials

VMS TMT Ltd., incorporated in 2013, operates a manufacturing facility for TMT bars in Ahmedabad. The company also deals in scrap and binding wires within the state of Gujarat.

Recent financial highlights include:

• Performance:
  • Profit After Tax: Rs 14.74 crore (9.40% year-on-year increase)
  • Revenue from Operations: Rs 770.20 crore (11.77% year-on-year decrease)

IPO Proceeds Utilization

The company plans to use the funds raised from the IPO for:

1. Debt settlement
2. General corporate purposes

The strong initial response to the VMS TMT IPO reflects investor confidence in the company's business model and growth prospects in the steel manufacturing sector. As the subscription window remains open, it will be interesting to see the final subscription figures and the subsequent market performance of VMS TMT shares upon listing.

VMS TMT Ltd., an Ahmedabad-based manufacturer of TMT bars, is set to launch its Initial Public Offering (IPO) on September 17. The company aims to raise Rs 148.50 crore through this book-building issue, offering 1.5 crore fresh shares at a price band of Rs 94-99 per share.

Grey Market Premium Signals Positive Sentiment

The grey market is showing a premium of Rs 20 per share, indicating an estimated listing price of Rs 119. This suggests potential listing gains of 20.20% for investors, reflecting positive market sentiment towards the IPO.

Key IPO Details

• Subscription Period: September 17-19, 2023
• Listing Date: September 24, 2023 (on BSE and NSE)
• Minimum Investment: Rs 14,850 for retail investors (150 shares)
• Issue Size: Rs 148.50 crore
• Price Band: Rs 94-99 per share

Utilization of Funds

VMS TMT Ltd. plans to use the proceeds from the IPO for:

1. Debt settlement
2. General corporate purposes

Recent Financial Performance

The company has reported mixed financial results:

Despite a decline in revenue, VMS TMT managed to increase its profit after tax, demonstrating improved operational efficiency.

IPO Management

Arihant Capital Markets has been appointed as the book-running lead manager for this IPO.

Investors interested in the VMS TMT IPO should conduct thorough research and consider their risk appetite before making an investment decision. As always, IPO investments carry inherent risks, and past performance does not guarantee future results.