VMS TMT Files DRHP with SEBI to Raise Funds Through IPO – Check Key Details

VMS TMT, a company that makes thermo mechanically treated (TMT) bars, has filed its draft red herring prospectus (DRHP) with SEBI to raise money through an Initial Public Offering (IPO). The IPO will consist entirely of a fresh issue of up to 1.5 crore shares.

The company plans to use ₹4,640 lakh from the raised funds to build a solar power plant, ₹3,000 lakh for long-term working capital, and ₹1,100 lakh for debt repayment or prepayment. The remaining money will go towards general corporate purposes.

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Some of the funds will also be used for a backward integration project to reduce operating costs, building a 15MW solar power plant to lower energy expenses, and expanding into the production and sale of MS pipes.

The company’s promoters currently own 96.28% of the shares, with 3.72% held by the promoter group and public shareholders, including Chanakya Opportunities Fund I and Kamdhenu Limited.

VMS TMT, based in Gujarat, can produce up to 2 lakh metric tonnes of TMT bars each year, and it produced 1,60,321 MT in FY24. As of August 31, 2024, the company had total borrowings of ₹25,251.83 lakh.

India’s TMT bar industry is growing fast, driven by demand from the construction, infrastructure, and real estate sectors, boosted by government initiatives like ‘Make in India’ and large infrastructure projects. Urbanization and major developments in highways, airports, railways, and residential real estate are also key drivers.

Arihant Capital Markets Limited is managing the IPO process.