VMS TMT IPO in Focus: VMS TMT’s initial public offer (IPO) is scheduled to kick off on Wednesday 17 September for subscription, and will remain open until Friday 19 September. The company intends to increase £ 148.50 through the offer, which is entirely a new issue of 1.50 crore shares. The IPO price tire is at £ 94 at £ 99 a share. Retail investors can apply for at least 150 shares in one site and can apply for up to 13 lots. At the top of the IPO price band, £ 99 each, retail investors should make a minimum investment of £ 14,850 per lot. Let’s look at some of the key points mentioned in the VMS TMT RHP: Overview of Business: The company is producing thermo mechanically treated pubs at the manufacturing facility in Bhayla Village, Ahmedabad, Gujarat, India. TMT rods are a high strength reinforcement language that is widely used in construction due to their extraordinary strength, dimineability and corrosion resistance. Business concentration in Gujarat: It runs its business mainly in the state of Gujarat, from which it obtained more than 98% of its revenue from the operations in fiscal 2024. Its revenue from the operations in fiscal 2024 from the sale of TMT beams in Gujarat made about 94% of total revenue from the operation, where retail sales constitute total revenue. Retail Licensing Agreement with Kamdhenu: The company has a retail license agreement of 7 November 2022, with Kamdhenu Limited, enabling it to market its TMT beams under the brand ‘KAMDHENY NXT’ on a non-exclusive basis on mutual conditions. Production capacity: From fiscal 2024, fiscal 2023 and fiscal 2022, it has a total annual installed capacity of TMT bars of 2 lakh metric tons per year for each year. The production of TMT bars in fiscal 2024, fiscal 2023 and fiscal 2022 were 1.60 lakh mt, 1.61 lakh mt and 72,121 mt. Backward integration and raw material safety: The company is currently buying Billets locally in Gujarat to produce its TMT bars. To improve the backward integration and increase the safety of raw materials, it recently installed an oven of thirty tonnes of electric induction and continuous castor for the manufacture of TMT bars, along with a power substation with 22,000 kvah. As part of this project, it will produce billets for its TMT bar production as part of a consolidated manufacturing process with an installed capacity of 216,000 MT per year. Diversification in MS pipes: The company has diversified its operations to include the production and sale of MS pipes. In July 2024, it began the test phase of the production of MS pipes and MS pipes with specifications ranging from 0.5 ”to 3” in diameter and a thickness of 1 mm to 2 mm. Debt Loan Position: The company’s debt levels remain high, with the debt-to-equity and debt-to-ebitda ratios at 4.25 times and 4.77 times, respectively, for the financial year 2024, however, these figures represent a significant improvement of 5.28 times and 7.39 times in fiscal 2023, which is a gradual trend. On August 31, 2024, the total loans were at £ 25,251.83 lakhs, including £ 16,454.01 lakhs in secure loans and £ 8,797.82 lakhs in unsecured loans. Objectives of the issue: The company proposes to use the funds from the returns for the repayment/prepayment, fully or in part, of the entire or part of certain loans used by the company and for general corporate purposes. Important risks: The company is very dependent on its retail license with KAMDHENU LIMITED and some major customers, with the top three accounting for more than 80% of revenue in fiscal 2024. Termination of these agreements or loss/reduction of purchases of key customers can substantially affect the business and its financial performance. Assignment and listing details: The granting of shares is expected to be completed on September 22, 2025, with a preliminary listing on both the BSE and NSE scheduled for Wednesday 24 September 2025. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.
-
-
-
-
