Post by : Saif
Al-Najjar
The initial public offering (IPO) of VMS TMT Ltd, a manufacturer of Thermo Mechanically Treated (TMT) bars, opened on 17th September 2025 and received overwhelming response from investors on the first day. By the end of trading on Day 1, the IPO was subscribed 8.4 times, reflecting strong interest from retail, institutional, and non-institutional investors.
IPO Price Band and Lot Size
VMS TMT IPO is priced in the band of ₹94 to ₹99 per share. The company aims to raise ₹148.50 crore through this fresh issue of 1.50 crore equity shares. The minimum lot size for retail investors is 150 shares. Investors looking to apply should note that the IPO closes on 19th September 2025.
Grey Market Premium (GMP)
In the unlisted market, VMS TMT shares are trading with a strong grey market premium (GMP) of ₹23 per share. This indicates that investors are willing to pay about 23% more than the upper-end IPO price of ₹99, highlighting the strong market confidence in the company’s prospects.
Subscription Details
The IPO received strong demand across all investor categories:
Qualified Institutional Buyers (QIBs): 7.09 times subscribed
Non-Institutional Investors (NIIs): 13.78 times subscribed
Retail Investors: 6.56 times subscribed
The quick subscription shows high confidence in the company’s growth potential and the steel industry outlook in India.
Company Milestones
VMS TMT has shown steady growth since its incorporation in 2013. Some key milestones include:
2019: Crossed turnover of ₹10,000 lakhs
2021: Established a manufacturing factory at Bhayla Village, Ahmedabad, Gujarat
2023: Crossed turnover of ₹50,000 lakhs and converted from private to public limited company
2024: Completed setup of Continuous Casting Machine (CCM) plant and commenced operations
Industry Outlook
India’s domestic consumption of TMT bars has been steadily rising due to growth in construction and infrastructure projects. Consumption increased from 41.6 million tons in FY 2021 to an estimated 62.5 million tons by FY 2025, registering a CAGR of 10.7%. The government’s push for large-scale infrastructure development and the expansion of residential and commercial projects are expected to further drive demand for TMT bars in the coming years.
Analyst View
Market experts suggest that VMS TMT’s strong fundamentals, combined with a robust growth outlook in the steel and construction sector, make this IPO attractive for investors. The high grey market premium and rapid subscription across categories indicate confidence in the company’s long-term performance.
Disclaimer
This article is based on publicly available information and market reports. Investors should conduct their own research and consult financial advisors before making any investment decisions.
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