VMS TMT is going to launch an Initial Public Offering (IPO) of 1.5 crore equity shares as it has got the green light from the SEBI, though we know that it has submitted its Draft Red Herring Prospectus (DRHP) to SEBI on March 27.
Now the company has received a green signal for the IPO of 1.5 crores of equity shares. It has only a fresh issue; therefore, all proceeds shall go to the company.
Earlier, on September 27, 2024, it had filed DRHP with the market regulator, but it withdrew on October 23.
The IPO’s expenses have already been counted for the foreseeable future.
Out of the total proceeds, ₹115 crore is for debt repayment, while the remaining funds will be used for general corporate purposes.
Arihant Capital Markets has been appointed as the sole book-running lead manager for the public offering.
Gursev Singh, Mandeep Singh, Ganga Singh, Dhanvinder Singh, and Tajinder Singh Bhatti are the directors of the company. Moreover, Manojkumar Jain, Varun Manojkumar Jain, and Rishabh Sunil Singhi are promoters.
Moreover, 96.28% of the stakes have been held by its promoters.
The remaining 3.72% of shares are owned by public shareholders, which include Chanakya Opportunities Fund I and Kamdhenu.
This company has the main business of manufacturing and supplying varied vehicles and MS fabrication, customized fabrication, fabrication job work, and fabrication services. Moreover, from 1 crore to 100 crores, it has a revenue for the 2023 FY.
VMS TMT makes TMT bars in Ahmedabad. They can produce 200,000 metric tonnes each year and made 160,321 metric tonnes in FY24.
VMS TMT IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
VMS TMT Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹493.75 | ₹484.75 | ₹6.88 |
| 2023 | ₹882.06 | ₹876.51 | ₹4.20 |
| 2024 | ₹873.17 | ₹853.87 | ₹13.47 |
| December 2024 | ₹555.38 | ₹540.24 | ₹11.12 |
VMS TMT IPO Valuation – FY2024
VMS TMT IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹4.01 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 28.96% |
| Net Asset Value (NAV): | ₹13.84 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Kamdhenu Limited | 18.59 | 27.37 | 21.12% | 88.13 | 738.29 Cr. |
| Vraj Iron and steel Limited | 21.69 | 10.49 | 28.73% | 76.19 | 424.27 Cr. |
| BMW Industries Limited | 2.62 | 27.70 | 9.30% | 28.22 | 539.43 Cr. |
| Electrotherm (India) Limited | 250.73 | 3.71 | NA | NA | 4,275.84 Cr. |
Objects of the Issue
- Funding capital expenditure for setting up of solar power plant at Survey Nos. 82, 81, 63, 64, 61, 49, 40 and 39 situated at Village Zenta, Tharad Taluka, Banaskantha District, Gujarat – 385565 (“Solar Power Plant”);
- Funding long-term working capital requirements of our Company;
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company; and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Arihant Capital Markets Limited
