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VMS TMT IPO GMP, Grey Market Premium Today

 


Key IPO Details

ParameterValue
CompanyVMS TMT Limited (manufacturer of Thermo Mechanically Treated Bars, scrap & binding wires) mint+3Trade Brains+3ICICI Direct+3
IPO TypeFresh issue (i.e. no Offer-for-Sale) Trade Brains
Issue Size₹148.50 crore mint+2ICICI Direct+2
Number of Shares1.50 crore shares mint+2ICICI Direct+2
Price Band₹94 to ₹99 per share mint+2mint+2
Lot Size150 shares per lot mint+2Trade Brains+2
Subscription Period17 September to 19 September 2025 mint+2Trade Brains+2
Listing Date (Expected)24 September 2025 mint+1
Allotment DateAround 22 September 2025 InvestorZone+2Trade Brains+2

Subscription Status & GMP (Grey Market Premium)

  • Day 1 Subscription (end of Day 1): ~ 8.40× overall. mint+2ICICI Direct+2

    • Retail portion: about 6.56× mint+2ICICI Direct+2

    • NII (Non-Institutional Investors): ~ 13.78× Moneycontrol+2mint+2

    • QIB (Qualified Institutional Buyers): ~ 7.09× mint+2ICICI Direct+2

  • Day 2 Subscription (mid Day 2): ~ 12-12.5× overall subscription The Economic Times+2Moneycontrol+2

  • GMP Today:

    • ₹ 24 per share in the grey market (i.e. shares are quoted at ~₹ 24 above the upper end of the IPO band) mint+2Trade Brains+2

    • This implies a potential listing price of about ₹121 (upper band ₹99 + ₹22-₹24 approx GMP) → roughly 22-25% premium mint+2Trade Brains+2

Other Financial / Business Highlights

  • Revenue drop from ~₹872.96 crore in FY24 to ~₹770.2 crore in FY25. Trade Brains+1

  • Profit after tax rose from ~₹13.47 crore in FY24 to ~₹14.74 crore in FY25. Trade Brains+1

  • EBITDA margin improved, PAT margin still modest. InvestorZone+1

  • Major use of IPO proceeds: ~₹115 crore for repayment/prepayment of debt; balance for general corporate purposes. ICICI Direct+1

  • The company has a sizeable local distribution network: 3 distributors and 227 dealers (as of 31 July 2025), mostly in Gujarat with some outreach elsewhere. Trade Brains+1

Implications & Analysis

  • The strong subscription numbers (8.4× on Day 1, rising to ~12× on Day 2) indicate very good demand. Investors are showing confidence, especially via NIIs. Moneycontrol+1

  • The GMP shows market expectation of a decent listing gain. A ~22-25% premium suggests people believe shares could list well above ₹99. mint+1

  • However, fundamentals are mixed: revenue has declined, although profits improved. The debt repayment goal is positive, as high leverage can be a concern in cyclical industries like steel. Trade Brains+1

  • Steel/TMT bars sector tends to be sensitive to raw material costs, regulatory changes (import/export, environment), and infrastructure demand. These are risks to keep in mind.

    • Verdict: Apply or Not?

    Here’s what to consider in deciding whether to subscribe:

    👍 Reasons to Apply:

    • Strong demand and healthy GMP suggest likely listing gains. If you’re a short-term investor looking for listing profits, this could be attractive.

    • Debt repayment will reduce financial risk for the company.

    • Reasonable valuation given the price band, especially since the premium is already being priced in via GMP.

    • The company has local footprint, some brand tie-ups (e.g. via distribution), which could help sales growth.

    👎 Reasons to Be Cautious:

    • Declining revenue trend suggests that topline growth is a concern; sustaining or reversing that decline is essential.

    • Margins are still relatively thin; any cost inflation (steel input, energy, transportation) could hurt earnings.

    • Grey market premiums may not always translate into high listing gains; market sentiment can shift.

    • As with many IPOs, there is no guarantee; be ready for volatility or if the listing does not meet expectations.

    What I Think

    If I were you, and had capital to spare, I’d consider subscribing to this IPO, especially if I were okay with moderate risk and seeking a listing gain. It seems fairly well-positioned for now. But I’d also not bet heavily — perhaps allocate only a portion of what you’re willing to invest in IPOs, since there are still some risks.

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    Location: India

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