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VMS TMT Ltd IPO: Subscription, Financials & Investment Analysis

IPO Name: VMS TMT Ltd; Listing Date: 25 Sep 2025; Issue Size: ₹143.35 Cr; Price Band: ₹56–₹61; Open Date: 17 Sep 2025; Close Date: 19 Sep 2025; Lot Size: 235 shares; Exchange: BSE, NSE; Issue Type: Book Built; Face Value: ₹10; Registrar: Kfin Technologies Ltd.

VMS TMT Ltd IPO: Subscription, Financials & Investment Analysis

Introduction:
VMS TMT Ltd, established in 2013 and based in Ahmedabad, specializes in manufacturing Thermo Mechanically Treated (TMT) bars. The company is set to launch its IPO from 17th to 19th September 2025, aiming to raise approximately ₹143.35 crore. The issue comprises a fresh issue of 1.5 crore equity shares with a face value of ₹10 each. The price band is set between ₹56 and ₹61, and the minimum application lot size is 235 shares, translating to an application amount of ₹14,335. The IPO will be listed on both BSE and NSE on 25th September 2025.

Financial Snapshot:

Financial MetricFY 2023-24FY 2022-23FY 2021-22
Total Income (₹ Cr)873.17882.06493.75
Profit After Tax (₹ Cr)134.6841.956.88
EBITDA (₹ Cr)45.5341.2019.48
Net Worth (₹ Cr)81.7773.1946.51
Total Borrowing (₹ Cr)309.18275.72197.86

Business Model & Market Position:

VMS TMT Ltd operates a 200,000 MT per annum TMT bar manufacturing facility in Bhayla Village, Ahmedabad. The company markets its products under the Kamdhenu NXT brand, leveraging a licensing agreement with Kamdhenu Limited. Over 98% of its revenue is derived from operations in Gujarat, indicating a strong regional market presence. The company plans to in-source billet production to reduce dependency on external suppliers and enhance margins.

SWOT Analysis:

  • Strengths: Established brand under Kamdhenu NXT, strong regional market presence, plans for in-house billet production.
  • Weaknesses: High dependency on the Gujarat market, limited geographical diversification.
  • Opportunities: Expansion into new markets, increasing demand for quality TMT bars in infrastructure projects.
  • Threats: Fluctuating raw material prices, intense competition from established players.

Investment Perspective:

VMS TMT Ltd's IPO presents an opportunity to invest in a company with a solid market presence in Gujarat and plans for expansion. The financials indicate a strong profit growth trajectory, though the high dependency on the regional market poses a risk. Investors should consider their risk appetite and the company's plans for geographical diversification before investing.

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