VMS TMT IPO subscribed 8.40x on Day 1; GMP signals 22% listing pop. Check details

VMS TMT IPO, which opened for bidding on Wednesday, September 17, sailed through within minutes of opening. The issue ended the first day of bidding with strong demand, as all categories were fully booked.

Investors have till Friday, September 19, to apply for the VMS TMT IPO.

VMS TMT IPO Subscription

According to BSE data, VMS TMT IPO received bids for 10,33,32,600 shares as against 1,23,00,000 shares on offer, taking the overall IPO subscription to 8.40 times at the end of the first day.

The retail portion was booked 6.56 times, the non-institutional investor (NII) quota was subscribed 13.78 times and the qualified institutional buyer (QIB) segment garnered 7.09 times bids.

VMS TMT IPO GMP

VMS TMT IPO GMP, or grey market premium, was ₹22. At the prevailing GMP and upper end of the price band, VMS TMT IPO listing price could be ₹121, a premium of 22.22% over the issue price.

GMP signals an investor's willingness to pay over and above the issue price.

VMS TMT IPO Details

VMS TMT, a manufacturer of Thermo Mechanically Treated (TMT) Bars, is looking to raise ₹148.50 crore through a fresh issue of 1.5 crore equity shares.

The IPO price band has been set at ₹94 to ₹99 per share. The lot size for the IPO is 150 shares. The minimum amount of investment required by a retail investor is ₹14,850 based on the upper price band of the issue.

The company looks to use the funds raised for repayment, in full or part, of all or a portion of certain borrowings availed by the company and general corporate purposes.

Incorporated in 2013, VMS TMT is primarily engaged in the manufacturing of Thermo Mechanically Treated (TMT) Bars. In addition to TMT bars, the company also trades in scrap and binding wires, which are distributed across Gujarat and other Indian states.

VMS TMT’s manufacturing facility is strategically located in Bhayla Village, near Bavla in the Ahmedabad district of Gujarat, providing a logistical advantage for the efficient distribution of its products.

Arihant Capital Markets is the book-running lead manager, and Kfin Technologies is the registrar of the issue. Shares of the company are proposed to list on BSE and NSE on September 23.

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