⁠VMS TMT IPO: Latest GMP Signals Over 20% Premium Ahead Of Sept. 17 Launch, Check Key Details

VMS TMT Ltd. is scheduled to launch its initial public offering (IPO) on Wednesday, Sept. 17. The company is a manufacturer of TMT bars. In the build-up to its launch, the grey market premium (GMP) for the mainboard issue indicated a potential listing gain of over 20%.

Here are the key details about the IPO that investors need to check before applying for shares of VMS TMT Ltd.  

As per InvestorGain, the latest GMP for ⁠VMS TMT IPO stood at Rs 20 per share at 1:45 p.m. on Sept. 15. Based on the upper end of the price band of Rs 99 apiece, the estimated listing price stands at Rs 119, indicating a potential listing gain of around 20.2% per share.

Note: GMP does not represent official data and is based on speculation.

The VMS TMT IPO is a book-building issue of Rs 148.5 crore. It comprises a fresh issue of 1.5 crore shares.

The price band for the IPO has been fixed at Rs 94 to Rs 99 per share.  

A retail investor can apply for a minimum of a single lot size comprising 150 shares. The minimum investment amount for a retail bidder stands at Rs 14,850. For sNIIs, the minimum application size is 14 lots, or 2,100 shares, worth Rs 2,07,900. Similarly, bNIIs can apply for at least 68 lots, or 10,200 shares, amounting to a minimum investment of Rs 10,09,800.

The subscription window for the IPO will remain open from Sept. 17 to Sept. 19. The IPO share allotment status is expected to be finalised on Sept. 22. The company is expected to transfer the shares to the Demat accounts of the successful bidders on Sept. 23. Refunds for non-allottees will also be processed on the same day. 

Shares of VMS TMT Ltd. are tentatively scheduled to be listed on the BSE and NSE on Sept. 24.

The Qualified Institutional Buyers (QIBs) will be offered a maximum of 30% of the net issue. Retail investors will be allocated at least 50% of the net issue and the remaining 20% will be reserved for Non-Institutional Investors. 

Arihant Capital Markets Ltd. is the book-running lead manager and KFin Technologies Ltd. is the registrar of the issue.

The company has planned to utilise proceeds from the IPO for debt settlement and general corporate purposes.

The company manufactures Thermo Mechanically Treated Bars (TMT Bars). Its manufacturing facility is located in Ahmedabad, Gujarat.

The company reported a 9.4% year-on-year (YoY) increase in profit after tax (PAT) at Rs 14.74 crore in FY25 from Rs 13.47 crore in FY24. However, its revenue from operations fell 11.77% YoY to Rs 770.2 crore in FY25 from Rs 872.96 crore in FY24. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.