VMS TMT IPO to Open on September 17 with 20% Grey Market Premium
VMS TMT Ltd., an Ahmedabad-based TMT bar manufacturer, is launching its IPO on September 17 to raise Rs 148.50 crore. The issue offers 1.5 crore fresh shares at Rs 94-99 per share. The grey market shows a premium of Rs 20, suggesting potential listing gains of 20.20%. The IPO subscription period is September 17-19, with listing on September 24 on BSE and NSE. Funds will be used for debt settlement and general corporate purposes. The company reported a 9.40% increase in profit after tax for FY 2023, despite an 11.77% decrease in revenue.
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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:
- Debt settlement
- General corporate purposes
Recent Financial Performance
The company has reported mixed financial results:
| Metric | FY 2023 | YoY Change |
|---|---|---|
| Profit After Tax | Rs 14.74 crore | 9.40% |
| Revenue from Operations | Rs 770.20 crore | -11.77% |
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.
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