Investors subscribe to VMS TMT IPO over eight times its offer size on Day 1

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The initial public offer of VMS TMT, a TMT bars manufacturer, has been subscribed more than 8 times on the first day of bidding on Wednesday.

The three-day initial share sale received bids for 10,32,66,000 shares against 1,23,00,000 shares on offer, translating into 8.40 times subscription, according to data available with the NSE.

The portion for non-institutional investors was subscribed 13.78 times, while the quota for retail individual investors got subscribed 6.56 times. The Qualified Institutional Buyers (QIBs) portion received 7.09 times subscription.

VMS TMT Ltd on Tuesday raised nearly Rs 27 crore from anchor investors.

The Rs 148.50-crore initial public offering (IPO) will conclude on September 19. The price band has been fixed at Rs 94-99 per share.

The IPO is entirely a fresh issue of 1.50 crore equity shares.

Proceeds from the fresh issue to the tune of Rs 115 crore will be used for repayment of debt and balance for general corporate purposes and issue expenses.

Incorporated in 2013, VMS TMT Ltd is primarily engaged in the manufacturing of thermo-mechanically treated bars (TMT Bars). The company also deals in scrap and binding wires, which are sold within Gujarat and other states.

It is backward integrated with in-house billet production capacity of 2.16 lakh metric tonnes per annum and is also setting up a 15 megawatt solar power plant for captive consumption.

On the financial front, the company reported revenue of Rs 770.19 crore and profit after tax of Rs 14.74 crore in FY 25.

The company's shares will be listed on the BSE and NSE.

Arihant Capital Markets is the sole book running lead manager while Kfin Technologies is the registrar for the IPO.