VMS TMT IPO Gets SEBI Nod; Gujarat-Based Steel Maker to Use Funds for Debt Reduction and Growth

Mumbai, 25 July 2025: Gujarat-based VMS TMT Ltd has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its much-anticipated Initial Public Offering (IPO). The company, known for manufacturing Thermo Mechanically Treated (TMT) bars, plans to utilise the IPO proceeds primarily to repay outstanding debt and support its expansion initiatives.

SEBI’s Approval Clears Path for VMS TMT IPO After Earlier Withdrawal

VMS TMT’s IPO journey has seen a strategic shift in approach. After initially filing draft papers in September 2024, the company withdrew its application on 23 October 2024. It later refiled the Draft Red Herring Prospectus (DRHP) on 27 March 2025. With SEBI’s recent approval, the company is now ready to proceed with its public listing.

IPO Structure Focuses on Fresh Capital Infusion, No Offer-for-Sale Included

The IPO will consist solely of a fresh issue of up to 1.5 crore equity shares, with no offer-for-sale (OFS) component. According to the company’s official release, ₹115 crore from the net proceeds will be used to reduce existing debt. The remaining amount is earmarked for general corporate purposes, indicating a dual focus on financial stability and operational growth.

Equity Listing Planned on NSE and BSE to Broaden Market Reach

VMS TMT has proposed to list its equity shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The dual listing is expected to enhance investor participation and improve share liquidity in the secondary market, further aiding the company’s visibility and capital access.

Promoters Retain Strong Control With Over 96% Stake Before IPO

The current shareholding pattern shows that promoters collectively hold a substantial 96.28% stake in the company. Public shareholders, including prominent investors such as Chanakya Opportunities Fund I and Kamdhenu, own the remaining 3.72%. The upcoming IPO is likely to diversify the shareholder base and improve public float.

Debt Reduction and Growth Strategy Signal Long-Term Business Confidence

With the ₹115 crore allocation towards debt repayment, VMS TMT aims to lower its financial burden and improve credit metrics. The rest of the capital infusion will support corporate needs, positioning the company to expand operations and seize emerging opportunities in the infrastructure and construction sectors.

REF: https://vmstmt.com/wp-content/uploads/2025/03/DRAFT-RED-HERRING-PROSPECTUS.pdf

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