About Company
Incorporated in 2013, VMT TMT is one of the growing manufacturers of Thermo-Mechanically Treated (TMT) Bars. VMT TMT Limited has a wide range of customers, including retail and institutional, from the Gujarat State (except the Saurashtra and Kutch districts of Gujarat). The company has skilled and experienced promoters Varun Manojkumar Jain, Rishabh Sunil Singhi, Manojkumar Jain, and Sangeeta Jain with more than 30 years in the steel industry.
As of July 31, 2025, we sell our TMT Bars through a non-exclusive distribution network that includes 3 distributors and 227 dealers. The company has a main focus on sustainability, environment, quality, health, and safety. Furthermore, the company has unique strengths. To reduce costs and support sustainability, they use renewable energy and also produce their own raw materials to lower costs and improve the supply chain. Not only does the firm have an expert management team, but it also has 230 permanent employees.
Strengths
- VMS TMT is one of the leading companies involved in the manufacturing of TMT Bars using scrap in a 30-ton induction furnace with CCM and a rolling mill.
- Over the years, the company benefited from strong long-term customer relationships via a large distribution network.
- The company has shown a strong growth record in financial performance.
- The company consists of Experienced promoters supported by a dedicated senior management team.
Weaknesses
- The company generates most of its revenue from its top 10 customers, with its single largest customer contributing 30% of the company’s revenue. Loss of any of these customers or a reduction in the purchase of the products by them can negatively impact the business, cash flow, and financial condition.
- VMS TMT does not hold any long-term contracts with any of its customers, distributors, or dealers, meaning the end of any contract can negatively affect the business, financial condition, and cash flow.
- As of FY25, FY24, and FY23, the company mostly generated its revenue from the manufacturing of TMT bars. Due to the volatile nature of the TMT bar, any fall in prices or sales will negatively impact the business, cash flow, and financial condition.
- The company experiences competition from both national and local players, if it is unable to compete properly, it can badly affect the overall business.
VMS TMT IPO Review
| IPO Watch | Neutral |
| Capital Market | Avoid |
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| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
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| SMC Global | |
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| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
VMS TMT IPO Details
| IPO Open Date: | September 17, 2025 |
| IPO Close Date: | September 19, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹94 to ₹99 Per Share |
| Issue Size: | ₹148.50 Crores |
| Fresh Issue | ₹148.50 Crores |
| Registrar | KFin Technologies Limited |
| IPO Lead Managers | Arihant Capital Markets Ltd. |
| Basis of Allotment | September 22, 2025 |
| IPO Listing Date: | September 24, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations | 77,140.76 | 87,316.86 | 88,205.61 |
| EBITDA | 4,552.62 | 4,120.29 | 2,190.77 |
| EBITDA Margin (%) | 5.91% | 4.72% | 2.48% |
| Net Profit after Tax Margin | 1.91 | 1.54 | 0.48 |
| Return on Net Worth (%) | 20.14% | 28.96% | 13.60% |
| Return on Capital Employed | 12.79% | 16.70% | 10.94% |
| Debt to EBITDA Ratio | 6.06 | 4.80 | 7.43 |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| VMS TMT Limited | ₹10 | 22.24 | ₹4.29 | 20.14% | ₹13.32 |
| Kamdhenu Limited | ₹10 | 13.50 | ₹2.18 | 18.82% | ₹11.66 |
| Vraj Iron and Steel Limited | ₹10 | 11.77 | ₹13.55 | 10.88% | ₹116.53 |
| BMW Industries Limited | ₹1 | 16.57 | ₹2.83 | 9.16% | ₹30.84 |
| Electrotherm (India) Limited | ₹10 | 2.37 | ₹336.42 | (377.85) | (89.01) |
Promoters & Track Records, if any
- Varun Manojkumar Jain, one of the Promoters, aged 36 years, the Chairman and Managing Director of the Company, holds 85,00,000 shares, representing 24.54% of the shares in the company.
- Rishabh Sunil Singhi, aged 26 years, is the promoter and is also a Whole-time Director of the Company, and holds 1,20,14,760 shares, representing 34.69% of the shares in the company.
- Manojkumar Jain, aged 63 years, is one of the promoters and Non-Executive director of the company, holds 1,02,81,250 Equity shares in the company, representing 29.69% of the paid-up Equity Share capital.
- Sangeeta Jain, aged 57 years, is one of the promoters of the company, holds 25,46,275 equity shares, representing 7.35% of the paid-up Equity Share capital in the company.
Information on Industry’s P/E Ratio
The company VMS TMT IPO did not show the P/E ratio in the RHP. However, let’s check out the industry’s P/E ratio to understand it more. BMW Industries Limited has the highest P/E ratio of 16.57 and a face value of ₹1 per equity share, while Electrotherm (India) Limited has the lowest P/E ratio of 2.37 and a face value of ₹10 per equity share. The overall industry average P/E ratio stands at 9.47.
VMS TMT IPO – Should You Apply or Not?
VMS TMT comes with an established backward-integrated support, Long-term customer relationships, a large distribution network, and expected benefits from debt reduction, which support its growth prospects. However, the company also comes with various risks, like dependence on the availability and cost of raw materials, dependence on the top 10 customers, and negative cash flows.
Cautious Investors may choose to apply for this IPO for listing gains in a short-term period after evaluating the Grey Market Premium trends (GMP) and market sentiment and demand. Long-term investors must carefully evaluate the company’s scalability, profit margins, seasonality of the steel industry, and future growth before investing their money in it.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
