- The anchor investor bidding will open on Tuesday, September 16, 2025.
- Total annual installed capacity of TMT Bars is 200,000 metric tonnes (“MT”) per annum
- Serve a diverse customer base comprising both retail and institutional customers
- The company plans to utilise ₹115 crore of IPO proceeds for repayment of borrowings
NE BUSINESS BUREAU
AHMEDABAD, SEPT 14
Ahmedabad-based VMS TMT Limited, manufacturer of TMT bars under the Kamdhenu brand, has on Saturday announced a price band of ₹94–₹99 per equity share for its upcoming ₹150 crore Initial Public Offering (IPO).
The issue opens for public subscription on Wednesday, September 17, 2025, and closes on Friday, September 19, 2025, with the anchor investor bidding on Tuesday, September 16, 2025. The IPO comprises a fresh issue of up to 1.5 crore equity shares of face value ₹10 each, through the book-building process.
Utilisation of Proceeds
The company plans to deploy ₹115 crore from the net proceeds towards repayment or prepayment of certain borrowings, with the balance earmarked for general corporate purposes and issue-related expenses.
Speaking to the media, Manojkumar Jain highlighted the company’s debt strategy:
“When we set up the TMT plant in 2021, it cost ₹87 crore, of which ₹35 crore was funded through a term loan. In 2024, we commissioned a ₹120 crore billet plant, backed by ₹62 crore of borrowing. A portion of the IPO proceeds will go towards repayment of these loans, saving us ₹10–12 crore annually in interest. Additionally, we are setting up a ₹55 crore solar plant, partly financed through a ₹43 crore loan.”
Operations and Expansion
VMS TMT operates its manufacturing unit at Bhayla Village, Ahmedabad, with a strong distribution network comprising 3 distributors and 227 dealers as of July 31, 2025. The company also owns over 50 trucks to facilitate direct doorstep delivery of TMT bars, with sales largely focused on Tier II and Tier III cities.
The company is backward integrated with in-house billet production capacity of 2,16,000 MTPA and is setting up a 15 MW solar power plant for captive consumption. VMS TMT holds multiple certifications including BIS, ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015, underscoring its commitment to quality, safety, and sustainability.
Financial Performance
- FY25 revenue from operations: ₹770.19 crore
- Profit after tax (PAT): ₹14.73 crore (vs. ₹13.47 crore in FY24)
- Q1 FY26 (ended June 30, 2025): revenue ₹212.26 crore; PAT ₹8.58 crore
Listing and Advisors
The equity shares of VMS TMT will be listed on both BSE and NSE.
Arihant Capital Markets Ltd is acting as the Book Running Lead Manager (BRLM), while Kfin Technologies Ltd is the Registrar to the Issue.
