IPO Details
- IPO Opening Date: September 17, 2025
- IPO Closing Date: September 19, 2025
- IPO Size: Rs 141 crore – Rs 149 crore Fresh issue of 1,50,00,000 equity shares;
- Price Band: Rs 94 – Rs 99 per equity share
- Lot Size: 150 Shares
- Investor Allocation: QIB not more than 30%, NII not less than 20%, Retail not less than 50%
- Lead Managers: Arihant Capital Markets Ltd.
- Registrar: Kfin Technologies Ltd.
About the Company
- VMS TMT is engaged in manufacturing Thermo Mechanically Treated (TMT) Bars at its facility in Bhayla, Ahmedabad, Gujarat. The company conducts its business predominantly in the state of Gujarat, deriving over 96% of its revenue from the region. It markets its TMT Bars under the “Kamdhenu Brand” through a retail license agreement.
- Main products/services: TMT Bars are the main product. The company also sells scrap, binding wires, and billets.
- Sales & manufacturing units: The company has one manufacturing facility at Bhayla Village, Ahmedabad, Gujarat.
- Employees: There were 230 permanent employees as of July 31, 2025.
- Promoters: Varun Manojkumar Jain, Rishabh Sunil Singhi, Manojkumar Jain and Sangeeta Jain are the promoters.
- Branches/network: The company has a distribution network of 3 distributors and 227 dealers as of July 31, 2025.
Financials
| Particulars (Rs. Cr) | Q1 FY26 | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue from Operations | 212.26 | 770.19 | 872.96 | 882.01 |
| EBIDTA | 19.48 | 45.53 | 41.20 | 21.91 |
| EBIDTA Margin (%) | 9.18% | 5.91% | 4.72% | 2.48% |
| Net Profit | 8.58 | 14.74 | 13.47 | 4.20 |
| Net Profit Margin (%) | 4.04% | 1.91% | 1.54% | 0.48% |
Post IPO Market cap: Rs. 491.35 crore. Market cap/ sales (FY25): 0.64 times. P/E FY24: 24.69 times. P/E FY25: 31.83 times. P/E FY26: 14.33 times (annualized).
The company’s top line has been declining over the last three fiscal years, while its bottom line has shown a rising trend. A high debt-to-equity ratio of 3.78 as of June 30, 2025, is a point of concern.
Anchor Investors
VMS TMT raised ₹26.73 crore from anchor investors by allocating 27,00,000 shares at ₹99 per share to a total of 5 anchor investors. The anchor investors and their percentage allocations are: Saint Capital Fund (22.45%), Chanakya Opportunities Fund I (21.42%), Maybank Securities Pte (18.71%), Astorne Capital VCC – Arven (18.71%), and Vbcube Ventures Fund (18.71%). No mutual fund was allocated any shares in the anchor portion
Salient points
- Use of funds: The net proceeds will be used for repayment/prepayment of certain borrowings amounting to Rs 115 crore, with the balance for general corporate purposes.
- Business scenario: Domestic demand for TMT bars is expected to rise, driven by government focus on infrastructure. TMT bar consumption in India is projected to grow at a CAGR of around 7% to reach over 62 million tonnes by FY 2030.
- Business Verticals: The company primarily manufactures and sells TMT bars, which accounted for 91.63% of revenue from operations in FY25. It also sells scrap, binding wires, and billets.
- Revenue Model: The company sells TMT bars under the “Kamdhenu Brand” through a distribution network of 3 distributors and 227 dealers to retail and institutional customers.
- Growth Strategies: The key strategies include integrating renewable energy by setting up a 15 MW solar plant, leveraging backward integration of its CCM division, diversifying its product portfolio, and expanding market penetration in Gujarat.
- Risks: Key risks include dependency on the non-exclusive license agreement with Kamdhenu, reliance on third-party suppliers for raw materials, high revenue concentration with top customers, high debt-to-equity ratio (3.78 as of June 30, 2025), negative operating cash flows, and high geographic concentration in Gujarat.
- Litigations: There are outstanding legal proceedings against the company, promoters, directors, and group companies, with quantifiable amounts involved.
- Revenue split by region: The business is predominantly concentrated in Gujarat, which contributed 96.72% of revenue from operations in FY25.
- Revenue split by product: In FY25, TMT bars constituted 91.63% of revenue from operations, while scrap, binding wires, and billets made up the rest.
- Capacity utilisation: The capacity utilization for TMT bars was 63.03% in FY25 and 80.16% in FY24. For the CCM (billets) division, it was 46.61% in FY25 since its commissioning in September 2024.
- Clients: The company has a diverse customer base of retail and institutional customers. In FY25, the top ten customers contributed 92.82% of revenue from operations.
- Receivables trend: Trade receivables as a percentage of revenue from operations increased from 1.02% in FY23 to 3.25% in FY25.
- CAGR (FY23-FY25): Revenue from operations has declined. However, EBITDA grew at a CAGR of 44.16% and PAT at 87.42%.
Peers The following table provides a comparison with listed industry peers for the financial year ended March 31, 2025.
Peers The following table provides a comparison with listed industry peers for the financial year ended March 31, 2025.
| Company Name | Face Value (₹) | Total Income (₹ Cr) | NAV (₹/share) | P/E | CMP (₹) | RoNW (%) |
| VMS TMT Limited | 10.00 | 771.41 | 13.32 | 33 | [●] | 20.14 |
| Kamdhenu Limited | 10.00 | 757.95 | 11.66 | 13.50 | 29.43 | 18.82 |
| Vraj Iron and steel limited | 10.00 | 478.86 | 116.53 | 11.77 | 159.45 | 10.88 |
| BMW Industries Limited | 1.00 | 566.43 | 30.84 | 16.57 | 46.88 | 9.16 |
| Electrotherm (India) Limited | 10.00 | 4,122.92 | (89.01) | 2.37 | 797.35 | (377.85) |
Opinion I will skip this IPO. Post IPO equity capital: Rs. 49.63 crore. P/E for FY25: 31.83 times, P/E for FY26: 14.33 times (annualized).
- The IPO appears aggressively priced based on FY25 earnings, and it is fully priced when compared to peers that have better margins and lower debt.
- The company has a a high debt-to-equity ratio, and negative operating cash flows in recent periods.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.