VMS TMT IPO: Fresh Issue of 1.5 Crore Shares to Reduce Debt

Sandip Raj Gupta

    31/Mar/2025

  • VMS TMT has refiled IPO documents with SEBI for a fresh issue of 1.5 crore equity shares.

  • The company plans to use ₹115 crore from the IPO proceeds to repay debt, reducing its ₹160.2 crore liabilities.

  • VMS TMT operates in Gujarat with a Kamdhenu brand licence and has Arihant Capital as its IPO lead manager.

VMS TMT, a leading Gujarat-based manufacturer of thermo mechanically treated (TMT) steel bars, has refiled its Initial Public Offering (IPO) papers with the Securities and Exchange Board of India (SEBI). The company aims to raise funds primarily for debt reduction, with the IPO consisting of an entirely fresh issue of 1.5 crore equity shares.

IPO Filing and Purpose

As per the draft red herring prospectus (DRHP) filed on March 27, 2025, VMS TMT intends to utilize ₹115 crore from the net IPO proceeds for repaying its outstanding debt, which stood at ₹160.2 crore as of December 2024. The remaining funds will be allocated for general corporate purposes.

The company had initially filed for the same IPO size on September 27, 2024, but later withdrew the draft on October 23, 2024. With the refiling, VMS TMT aims to move forward with its capital-raising plans.

Business Overview and Market Presence

VMS TMT is engaged in manufacturing high-strength reinforcement steel bars, widely used in the construction and infrastructure sectors. The company operates in Gujarat and holds a retail licence agreement with Kamdhenu Limited, which allows it to market its TMT Bars under the Kamdhenu brand within Gujarat on a non-exclusive basis.

Shareholding Structure

The promoters currently hold a 96.28% stake in VMS TMT, while the remaining 3.72% is owned by public shareholders, including Chanakya Opportunities Fund I and Kamdhenu.

IPO Management and Lead Manager

Arihant Capital Markets has been appointed as the sole book-running lead manager for the IPO. The company will play a crucial role in managing the public issue, regulatory filings, and investor outreach.

Industry Outlook and Competitive Edge

  • Strong Demand for TMT Bars: The Indian construction industry continues to witness steady demand for TMT bars, driven by infrastructure growth and urbanization.

  • Debt Reduction Strategy: With a planned repayment of ₹115 crore in debt, VMS TMT aims to improve its financial health and enhance profitability.

  • Kamdhenu Brand Association: The retail licence agreement with Kamdhenu strengthens VMS TMT’s market positioning in Gujarat, giving it a competitive edge.

Future Prospects and Investment Potential

With the refiling of its IPO, VMS TMT is set to capitalize on India's booming construction sector. The fundraising will not only reduce debt but also provide resources for future growth and operational expansion. Investors looking at mid-cap industrial stocks and IPO opportunities in the steel sector will closely watch the company’s market debut.


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