VMS TMT IPO: Files DRHP to SEBI for Upcoming IPO

VMS TMT Limited has filed its DRHP with SEBI to prepare for its upcoming public issue. This upcoming IPO is offering entirely a fresh issue of up to 1,50,00,000 equity share.

The total aggregate size of a public issue in rupees is not disclosed, whereas the total no. of equity shares that will be issued by the company is up to 1,50,00,000 equity shares.

This IPO will follow the book-building process, with not more than 50% of the offer reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for retail investors is reserved.

VMS TMT IPO open date and close date is not yet declared. The price band & lot size will be revealed soon by the company. The Shares to be offered through the Red Herring Prospectus are proposed by the company to be listed on the BSE and NSE exchange.

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About VMS TMT Limited

VMS TMT Limited, established in 2013 and based in Bavla, Gujarat, is a leading public limited company specializing in the production of TMT bars from billets. As a franchisee of Kamdhenu Limited, VMS TMT has carved a niche in the steel industry, focusing on high-quality products for construction and infrastructure projects. The company boasts a paid-up capital of Rs 33.87 crore and an authorized capital of Rs 35 crore, reflecting its strong financial foundation. In the fiscal year 2022-23, VMS TMT achieved an impressive turnover of Rs 882.01 crore. Committed to excellence and innovation, VMS TMT Limited continues to expand its market presence while contributing significantly to the metals and minerals sector in India.

VMS TMT IPO Objectives 

The net proceeds are proposed to be utilized for funding capital expenditure towards setting up a solar power plant at Village Zenta, Banaskantha District, Gujarat, with an estimated cost of ₹46.40 crores, funding long-term working capital requirements of ₹30 crores, repayment or prepayment of certain borrowings amounting to ₹11 crores, and for general corporate purposes.

Financials of VMS TMT Limited

VMS TMT financials show strong performance during the period ended March 31 2024, compared to March 31 2023:

1. Assets increased from Rs 227.28 crores in March 2023 to Rs 284.23 crores in March 2024, a 25.06% increase.
2. Revenue decreased from Rs 882.01 crores to Rs 872.96 crores, a -1.03% decrease.
3. Profit After Tax (PAT) increased from Rs 4.20 crores in March 2023 to Rs 13.47 crores in March 2024, a 221.04% increase.
4. Total Borrowing increased from Rs 162.70 crores to Rs 197.86 crores, a 21.61% increase.

Lead manager(s) and Registrar of VMS TMT IPO

The IPO is managed by Arihant Capital Markets Limited, which is the book-running lead manager for this public issue. The company has appointed Kfin Technologies Limited as the registrar for this public issue.

Promoters of VMS TMT Limited

Varun Manojkumar Jain, Rishabh Sunil Singhi, Manojkumar Jain and Sangeeta Jain are the identifiable promoters (s) of the company. They collectively held 96.28% of the company's shares. However, post-IPO changes in their shareholding have not yet been disclosed in the Prospectus filed by the company with SEBI. To read the full DRHP, click here.

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