VMS TMT IPO is Oversubscribed! Why is It Trending?

The VMS TMT Ltd IPO has caught the attention of investors across India, closing with an extraordinary subscription of 102.26 times on its final day of bidding. 

The overwhelming demand reflects not only the company’s growth potential but also the strong appetite in India’s IPO market.

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VMS TMT Subscription Overdrive

The IPO of VMS TMT received bids for 125.78 crore equity shares against the 1.23 crore shares on offer.

Retail investors led the charge with 47.89 times subscription, while Non-Institutional Investors (NIIs) oversubscribed their quota 227.09 times. Qualified Institutional Buyers (QIBs) were equally bullish, booking their portion 120.80 times.

This massive oversubscription signals broad-based confidence in the company’s future trajectory.

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Price Band, Issue Size, and Fund Utilization

The IPO was open for bidding between September 17 and 19, 2025, with a price band of ₹94–₹99 per share.

The issue comprised a fresh issue of 1.50 crore shares, aggregating up to ₹149 crore at the upper band.

The proceeds are earmarked for:

1. Repayment of borrowings (₹115 crore)

2. General corporate purposes

3. Strengthening the financial position of the company

Ahead of the IPO, VMS TMT raised ₹26.73 crore from anchor investors on September 16, allocating 27 lakh shares at ₹99 each to five institutional participants.

VMS TMT IPO Allotment and Listing Timeline

1. Allotment finalization: September 23, 2025

2. Refund initiation: September 24, 2025

3. Listing date on NSE SME: September 25, 2025

Investors eagerly awaiting their VMS TMT IPO allotment can track updates via the exchange portals as the formalities unfold.

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Grey Market Premium (GMP) Buzz

Market insiders report that VMS TMT shares are commanding a grey market premium (GMP) of ₹14 over the upper band price of ₹99.

This hints at a potential listing price of ₹113, translating to a 14% premium for early investors. While GMP is not an official indicator, it often reflects investor sentiment ahead of listing.

Company Snapshot

Founded in 2013, VMS TMT manufactures thermo-mechanically treated (TMT) bars, billets, and allied steel products used extensively in construction and infrastructure.

Key highlights:

1. Annual installed capacity: 200,000 tonnes per annum

2. Distribution network: 3 distributors & 227 dealers across Gujarat

3. Revenue contribution: 94% from Gujarat (FY24), with 80% from retail sales

4. Financials (Q1 FY26): Revenue of ₹212.26 crore, net profit of ₹8.58 crore

VMS TMT also manufactures under the Kamdhenu brand in Gujarat through a retail license agreement. With India’s infrastructure boom, the company is well-placed to ride the rising steel demand.

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Challenges Ahead

Despite its growth story, investors should note the company’s high debt levels. As of FY24, debt-to-equity stood at 4.25x and debt-to-EBITDA at 4.77x. 

However, both ratios have improved compared to FY23, signaling a steady path toward deleveraging.

Why is the IPO Trending?

1. Oversubscription: One of the highest in 2025, showing strong retail and institutional confidence.

2. Grey Market Premium: Suggesting positive listing expectations.

3. Sector Growth: Rising steel demand in infrastructure and housing.

4. Financial Momentum: Improved debt profile and consistent revenue growth.

With the VMS TMT IPO allotment around the corner, all eyes are now on its September 25 listing, where investors will see whether the hype translates into strong market performance.

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FAQ

What is the VMS TMT IPO allotment date?

The allotment will be finalized on September 23, 2025.

When will VMS TMT list on the stock exchange?

VMS TMT will list on the NSE SME platform on September 25, 2025.

What is the expected listing price of VMS TMT shares?

Based on the current GMP of ₹14, the shares may list around ₹113 per share, though this is not guaranteed.

How were the IPO proceeds planned to be used?

The proceeds will mainly be used for debt repayment and general corporate purposes.

How can investors check their VMS TMT IPO allotment status?

Investors can check their allotment status on the NSE website or the registrar’s portal by entering their PAN, application number, or DP client ID.