VMS TMT IPO Soars: 26.84 Times Oversubscribed on Final Day
VMS TMT Ltd.'s Rs 148.5 crore IPO closed with 26.84 times oversubscription. Non-institutional buyers led with 50.66 times oversubscription. The Gujarat-based TMT bar manufacturer offered 1.5 crore fresh shares priced at Rs 94-99 each. The company's profit after tax increased by 9.40% to Rs 14.74 crore, despite an 11.77% revenue decline to Rs 770.20 crore. The grey market premium suggests a potential listing price of Rs 116, Rs 17 above the IPO price band.
*this image is generated using AI for illustrative purposes only.
The initial public offering (IPO) of VMS TMT Ltd., a Gujarat-based TMT bar manufacturer, has witnessed robust demand, closing its subscription period with impressive figures. The Rs 148.5 crore IPO was oversubscribed 26.84 times on its third and final day, showcasing strong investor interest.
Subscription Details
The book-building issue, comprising 1.5 crore fresh shares, was priced in the range of Rs 94-99 per share. The standout performance came from non-institutional buyers, who led the charge with a staggering 50.66 times oversubscription in their category.
Company Background
VMS TMT Ltd., incorporated in 2013, operates in the TMT bar manufacturing sector with its base in Gujarat. The company plans to utilize the IPO proceeds for debt settlement and general corporate purposes, potentially strengthening its financial position and operational capabilities.
Financial Performance
Recent financial data for VMS TMT Ltd. presents a mixed picture:
| Financial Metric | Amount (in crore) | Year-on-Year Change |
|---|---|---|
| Profit After Tax | 14.74 | 9.40% |
| Revenue | 770.20 | -11.77% |
Despite a decline in revenue, the company managed to improve its bottom line, indicating potential operational efficiencies or cost management strategies.
Grey Market Premium
The grey market is showing positive sentiment towards VMS TMT's listing. With a grey market premium of Rs 17 per share, the estimated listing price stands at Rs 116, suggesting a potential upside from the IPO price band.
Conclusion
The strong oversubscription of VMS TMT's IPO, particularly from non-institutional buyers, indicates significant market interest in the company. However, investors should note that grey market premiums and IPO subscriptions do not guarantee future stock performance. As always, it's advisable to consider company fundamentals, industry trends, and personal financial goals before making investment decisions.
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