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VMS TMT Ltd
SteelIPO
₹99 - 99
We are engaged in manufacturing of Thermo Mechanically Treated Bars ("TMT Bars") in the steel industry at our manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. We conduct our business predominantly in the State of Gujarat from where we derived 98.93%, 96.71%, 98.75% and 97.42% of our revenues from operations in the three months period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Our revenue model is based on the sale of TMT Bars to customers through a distribution network, on a non-exclusive basis, comprising of 3 distributors and 227 dealers as of July 31, 2025. Additionally, we also generate revenue from the sale of allied products, including billets, binding wires, scrap, and other by-products arising during the manufacturing process of TMT Bars. As part of our business model, we serve a diverse customer base comprising both retail and institutional customers, primarily within the State of Gujarat, excluding the Saurashtra and Kutch district. We have a retail licence agreement dated November 7, 2022, with Kamdhenu Limited which allows us to market our TMT Bars under the "Kamdhenu Brand" on mutually agreed terms within the State of Gujarat excluding the Saurashtra and Kutch districts on a non-exclusive basis.
Lot150Min Invest₹14,850Face Value₹10Issue Size₹149 CrFresh Issue₹149 CrListing Price₹105CMP₹42
Timeline
17 Sept
Bidding opens
19 Sept
Bidding closes
22 Sept
Allotment
23 Sept
Refund & demat credit
24 Sept
Listing
Subscription
Subscription opens once dates are announced
Reports
Offer Details
Terms
Issue Size₹149 Cr1.50 Cr shares
Fresh Issue₹149 Cr
Face Value₹10
Lot Size150 shares
ReservationQIB 30% · NII 20% · RETAIL 50%
Application Sizes
Retail₹14,8501-13 lots
sNII₹2,07,900from 14 lots
bNII₹10,09,800from 68 lots
Managers & Registrar
Lead ManagerArihant Capital Markets Ltd
RegistrarKFin Techologies Ltd
Ownership & Proceeds
Shareholding
CategoryPre IPOPost IPOPromoter Group96.27%67.19%Public3.73%32.81%
Objects of the Issue
- Repayment/Prepayment, in full or part, of all or a portion of certain borrowings availed by the company
- General corporate purposes
Financials
Profit & Loss
| Financial Year | FY23 | FY24 | FY25 | FY26 | Latest |
|---|---|---|---|---|---|
| RevenueCr | 882 | 873 | 770 | 839 | 874 |
| Operating ProfitCr | 22 | 41 | 46 | 61 | 53 |
| OPM% | 2.5 | 4.7 | 5.9 | 7.2 | 6.1 |
| PBTCr | 6 | 19 | 20 | 27 | 21 |
| PATCr | 4 | 13 | 15 | 21 | 17 |
| EPS | 1 | 4 | 4 | 5 | 4 |
Balance Sheet
| Financial Year | FY23 | FY24 | FY25 | FY26 | Latest |
|---|---|---|---|---|---|
| Equity CapitalCr | 13 | 13 | 35 | 50 | - |
| ReservesCr | 18 | 33 | 39 | 179 | - |
| BorrowingsCr | 163 | 198 | 276 | 231 | - |
| Fixed AssetsCr | - | - | 175 | 178 | - |
| Total AssetsCr | 227 | 284 | 412 | 519 | - |
Cash Flow
| Financial Year | FY23 | FY24 | FY25 | FY26 | Latest |
|---|---|---|---|---|---|
| Operating Cash FlowCr | -11 | 37 | -23 | -10 | - |
| Investing Cash FlowCr | -27 | -50 | -55 | -47 | - |
| Financing Cash FlowCr | 41 | 19 | 71 | 57 | - |
| Net Cash FlowCr | 2 | 6 | -7 | 0 | - |
Strengths & Risks
Strengths · as stated in the DRHP
- Improvement in financial performance consequent to implementation of backward integration project (CCM division).
- Positioned to take advantage of the steady growth in the steel bar and rods industry.
- Long-term customer relationships augmented by large distribution network.
- Established infrastructure with backward integration with strong logistics support.
- Track record of growth in financial performance.
- Experienced Promoters and committed senior management team.
Strategies · as stated in the DRHP
- Integration to Renewable Energy for Cost Optimization and Sustainability.
- Backward Integration for Cost Efficiency and Supply Chain Optimization.
- Diversifying into product portfolio.
- Market Penetration and Expansion Plan for TMT Bars in Gujarat.
Risks · as stated in the DRHP
- The company is dependent on a retail licence agreement with Kamdhenu Limited for sale of TMT bars and the agreement is non-exclusive in nature. Pursuant to this Agreement, the company has paid a royalty of Rs. 208.57 lakhs, Rs. 654.83 lakhs, Rs. 610.66 lakhs and Rs. 535.45 lakhs, respectively, representing 0.98%, 0.85%, 0.70% and 0.61% of its total revenue from operations for the three month period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The agreement has certain restrictions and obligations, such as minimum sales quotas, branding guidelines, packaging, and royalty payments. the company has derived 95.99%, 91.63%, 94.06% and 96.85% of its revenue from operations for the three month period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively from sale of TMT Bars and 100% of the revenue from such sale is only under Kamdhenu Brand. If the retail licence agreement with Kamdhenu Limited is terminated, the company is may face difficulties in retaining its network of distributors and dealers that distribute the company products, which could materially and adversely impact its business, results of operations and financial condition.
- Its business and profitability are substantially dependent on the availability and cost of the company raw materials and its dependent on third party suppliers for meeting the company raw material requirements which are on purchase order basis. its raw material's consumption accounted for 82.58%, 70.25% 87.86% and 96.63% of the company total expenses for the three months period ended June 30, 2025 and the Fiscals 2025, 2024 and 2023, respectively. Any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.
- Royalty payments under the company is agreement dated November 7, 2022, with Kamdhenu Limited may impact its profitability. the company has paid royalty of Rs. 208.57 lakhs, Rs. 654.83 lakhs, Rs. 610.66 lakhs and Rs. 535.45 lakhs, representing 0.98%, 0.85% 0.70% and 0.61%, of its total revenue from operations for the three month period ended June 30, 2025, and Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. Any increase in such royalty payments may adversely impact its business, results of operations, and financial condition.
- He company is derive a significant portion of its revenue from operations from the company top ten customers, with ITS single largest customer contributing 30.19%, 30.11%, 29.09% and 28.55% of its revenue from operations in the three months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Loss of any of these customers or a reduction in purchases by any of them could adversely affect the company business, results of operations, cash flows and financial condition.
- The company does not have long-term arrangements with any of the company customers, distributors or dealers. Any termination of its current arrangements with the company customers, distributors or dealers could materially and adversely affect its business, results of operations and financial condition.
- The company is relies on its distributors for the distribution of the company is TMT Bars with whom the company does not have any exclusive formal arrangement. Any significant loss of the company is distribution network or failure by its distributors to effectively sell or market the company products could have an adverse impact on its business, results of operations, and financial condition.