Small-cap stock under ₹50 jumps after announcement of amalgamation move

Small-cap stock VMS TMT edged higher after the company announced that its Board of Directors has approved a Scheme of Amalgamation for the merger of Aditya Ultra Steel Limited (AUSL) with VMS TMT Limited, subject to the receipt of requisite statutory and regulatory approvals, according to the company's exchange filing.

The company said the proposed amalgamation marks a transformational step in VMS TMT's growth strategy and aims to create a larger, more integrated steel manufacturing company with enhanced production capabilities, broader market presence, improved operational efficiency, and stronger financials.

Under the approved scheme, shareholders of Aditya Ultra Steel will receive 75 equity shares of VMS TMT for every 100 equity shares held in AUSL, subject to the terms of the scheme and necessary approvals.

According to the exchange filing, both VMS TMT and Aditya Ultra Steel manufacture premium-quality TMT bars under the Kamdhenu brand ecosystem across different regions of Gujarat. The merger is expected to bring the complementary businesses under a single listed entity, enabling seamless operations across the state while unlocking operational and financial synergies.

Commenting on the proposed merger, Varun Jain, Chairman and Managing Director of VMS TMT, said the amalgamation represents a significant milestone in the company's growth journey and reinforces its vision of building a stronger, future-ready steel enterprise.

He said the integration of two complementary businesses will create a unified platform with enhanced manufacturing capabilities, a wider distribution network, stronger financials and improved operational efficiencies.

According to Jain, the strategic combination will enable VMS TMT to serve customers more effectively, strengthen its market leadership across Gujarat, capitalise on emerging growth opportunities, and create sustainable long-term value for shareholders. He added that the company remains focused on operational excellence, innovation and supporting India's expanding infrastructure and construction sectors.

VMS TMT share price today

VMS TMT share price today opened at ₹43.60 apiece on the BSE, the stock touched an intraday high of ₹44 per share, and an intraday low of ₹43.50 per share.

From a technical perspective, Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, remains cautious on the stock, citing weak price action and low trading volumes.

According to Bhosale, the stock is trading below all its key moving averages, indicating that the broader trend remains under pressure. He believes the underperformance is likely to persist unless the stock decisively breaks above ₹48.

On the downside, Bhosale identified the ₹37 level as a key support, which coincides with an important retracement zone.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.