VMS TMT, a company in the Technology, Media, and Telecom (TMT) sector, made a strong debut on the stock market today. The company's shares commenced trading at Rs 104.90, marking a positive start for the newly listed entity.

IPO Performance

The initial public offering (IPO) of VMS TMT was priced at Rs 99.00 per share. The stock's opening price of Rs 104.90 represents a premium of 5.96% over the issue price, indicating a favorable reception from investors.

Market Response

The higher-than-expected opening price suggests that market participants have shown confidence in VMS TMT's business model and growth prospects. This positive debut could be attributed to various factors, including the company's financial performance, growth potential in the TMT sector, and overall market sentiment.

Investor Outlook

For investors who participated in the IPO, the listing day gains provide an encouraging start. However, it's important to note that stock prices can be volatile, especially in the initial days of trading.

Company Background

VMS TMT operates in the Technology, Media, and Telecom sector, which has been witnessing significant growth and transformation in recent years. The successful listing of the company on the stock exchange provides it with increased visibility and access to capital markets for future growth initiatives.

As with any new listing, investors and market analysts will be closely watching VMS TMT's performance in the coming days and weeks to gauge its long-term potential and stability in the market.

VMS TMT, a Gujarat-based steel manufacturer, is set to make its stock market debut today following the closure of its Rs 148-crore Initial Public Offering (IPO). The company's shares are commanding attention with a grey market premium of approximately 12%, suggesting modest investor expectations for the newly listed entity.

IPO Details

The VMS TMT IPO was priced in the range of Rs 94-99 per share, offering 1.5 crore fresh shares to the public. At the upper end of the price band, the company is valued at a market capitalization of about Rs 491 crore.

Company Profile

VMS TMT specializes in the manufacture of TMT (Thermo Mechanically Treated) bars, which are widely used in the construction industry. The company's manufacturing facility is located in Bhayla village near Ahmedabad, Gujarat. VMS TMT markets its products under its own brand and also through a licensing agreement with Kamdhenu for the 'Kamdhenu NXT' brand in Gujarat.

Financial Performance

The company has reported a remarkable financial turnaround in recent years:

Despite a moderation in revenue, VMS TMT has shown significant improvement in profitability and operational efficiency. The company achieved a Return on Equity (RoE) of 54% and Return on Invested Capital (RoIC) of 96% for FY25. The debt-equity ratio stands at 0.9x, indicating a balanced capital structure.

IPO Proceeds Utilization

The funds raised from the IPO will be primarily used for:

• Repayment of borrowings worth Rs 115 crore
• Funding general corporate purposes

Shareholding Structure

Post-IPO, the promoter holding in VMS TMT will decrease from 96.3% to 67.2%, enhancing the public float and potentially improving liquidity in the stock.

Valuation

At the upper price band of Rs 99, VMS TMT's stock was valued at 25 times its FY25 earnings, reflecting investor expectations of continued strong performance.

As VMS TMT makes its market debut, investors will be closely watching its performance, given the company's recent financial turnaround and the current market sentiment towards new listings in the manufacturing sector.