VMS TMT's revenue falls nearly 12 pc ahead of IPO, shows DRHP

Mumbai, Sep 12 (IANS) Gujarat-based steel bars manufacturer VMS TMT has reported a 11.8 per cent dip in its revenue ahead of its initial public offering (IPO).

According to its red herring prospectus (RHP), the company’s revenue declined to Rs 770.2 crore in the financial year 2024–25 (FY25), compared to the previous fiscal (FY24).

However, despite the fall in sales, its net profit rose 14.5 per cent to Rs 15.4 crore during the same period.

VMS TMT, which makes thermo mechanically treated (TMT) steel bars under the Kamdhenu brand, has filed its RHP with the Registrar of Companies and is set to launch its IPO on September 17.

The offering will consist entirely of a fresh issue of 1.5 crore equity shares, with all proceeds going directly to the company.

The IPO anchor book for institutional investors will open on September 16, and the issue will close for subscription on September 19.

The company plans to use Rs 115 crore from the IPO proceeds to repay borrowings, while the rest will be set aside for general corporate purposes.

As of June, its total borrowings stood at Rs 261.7 crore. The issue structure reserves 50 per cent of shares for retail investors, 30 per cent for qualified institutional buyers and the remaining 20 per cent for non-institutional investors.

VMS TMT operates primarily in Gujarat, manufacturing TMT bars from scrap and billets at its Bhayla Village plant in Ahmedabad, which has an installed capacity of two lakh metric tonnes per year.

The company’s IPO allotment will be finalised by September 22, with a planned listing on the stock exchanges on September 24.

The company had earlier filed draft IPO papers with SEBI on March 27, which were cleared on July 21. Arihant Capital Markets is acting as the sole book-running lead manager for the issue.

--IANS

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