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The global economy is expected to grow by 2.8% in 2025 which recorded GDP growth at 3.3% in CY 2024
In 2024, the global crude steel product contracted by 2.8% after experiencing a flat 0.1% growth in the previous year.
India emerged as one of the fastest growth economies amongst the leading advanced economies and emerging economies.. It is the world’s second-largest producer of crude steel and has seen significant expansion in its steel-making capacity over recent years. The installed crude steel capacity increased from 142.3 Mn tons in FY 2020 to 179.5 Mn tons in FY 2024, and further to 205.0 Mn tons in FY 2025, registering a healthy CAGR of around 7.6% during this period.
India’s domestic consumption of TMT bars has been rising steadily - Consumption has expanded from about 41.6 million tons in FY 2021 to an estimated 62.5 million tons by FY 2025, registering a healthy CAGR of around 10.7% during this period.
The surge in demand from construction and infrastructure projects,
Government initiatives like 'Make in India' and the National Infrastructure Pipeline, has significantly boosted production. The automotive sector's recovery and expansion also played a critical role
Technological advancements and modernization of steel manufacturing processes have improved efficiency and output
Government has imposed no restriction on production and sale of steel products, and this has immensely helped in the development of domestic manufacturing sector
By 2030- 31 National Steel Policy aims to boost per capita steel consumption to 160 kgs from the current level of about 61 kgs. It also aims to enhance the availability of domestically washed coking coal to decrease reliance on imported coking coal from 85% to 65% by 2030-31.
Railway sector improvement and network expansion is a major driver of TMT bar demand.
| Revenue | ₹770.19 cr | ₹849.00 cr (+10.23%) | |
| PAT | ₹15.41 cr | ₹34.28 cr (+122.45%) | |
| PAT Margin | 2.00 % | 4.04 % (+102.00%) | |
| EBITDA | ₹46.72 cr | ₹20.60 cr (-55.91%) | |
| EBITDA Margin | 6.07 % | 9.71 % (+59.97%) | |
| ROE | 21.05 % | 10.48 % (-50.21%) | |
| ROCE | 12.79 % | 4.52 % (-64.66%) | |
| D/E | 3.77 | 3.78 (+0.27%) |
Products:
TMT Bars with variuos grades
Billets
Binding Wires
Scrap and Others
Presence - All over the state of Gujarat
PE Ratio: 14.32x Average Sector PE Ratio: 15.40x
| Application | Lot | Shares | Amount |
|---|
Avg IPO Size (Sector Based):
₹ 333.41 cr.
Average Sector PE Ratio:
15.40 X
Listing Price:
₹ 104.90
Vms TMT is engaged in manufacturing of Thermo Mechanically Treated Bars at their manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. TMT Bars are high-strength reinforcement steel used widely in construction due to their exceptional strength, ductility, and corrosion resistance. Vms TMT conduct their business predominantly in the State of Gujarat from where company derived over 98% of their revenues from operations in Fiscal 2024. Revenue from operations in Fiscal 2024 from sale of TMT Bars in the State of Gujarat constituted approximately 94% of the total revenue from operations wherein retail sales constituted 80% and institutional sales constituted 14% of the total revenue from operations. Revenue from operations also includes sale of scrap, binding wires and billets which constitutes approximately 6% of the total revenue from operations in Fiscal 2024. Vms TMT have a diverse customer base of retail and institutional customers primarily based in the State of Gujarat. Vms TMT have a retail licence agreement dated November 7, 2022, with Kamdhenu Limited which allows us to market their TMT Bars under the brand Kamdhenu NXT on mutually agreed terms within the State of Gujarat on a non-exclusive basis. Vms TMT sells their TMT Bars to customers through distribution network, on a non-exclusive basis, which comprise of 3 distributors and 227 dealers as of August 31, 2024.
Established Infrastructure and Backward Integration
Strong Supply Chain and Logistics − Established Supply Chain Relationships
Experienced Leadership
Consistent Financial Growth and Performance
Geographic Concentration and Market Dependency with over 98% of its revenue coming from Gujarat
Limited Brand Recognition Beyond Gujarat
Debt Levels - reliance on borrowed funds
Expansion in Emerging Markets: − Geographic Diversification
Growing Demand for Construction Materials: − Infrastructure Growth
Technological Advancements and Innovation
Market Competition Pressure
Raw Material Price Volatility and Cost Fluctuations
Changes in industry regulations and environmental policies
Arihant Capital Markets Limited, based in Mumbai is the Lead Manager (BRLM) of Vms Tmt IPO. Arihant Capital Markets Limited has handled (17) SME IPOs till date of which (76%) of the SME IPOs have been listed with listing gains. Read full review of Arihant Capital Markets Limited .
Vms Tmt IPO may offer opportunites, depending on your investment strategy. For in-depth analysis, risk factors, and KPIs, check our detailed report on Vms Tmt Financial Review Page
Merchant Banker(s) of Vms Tmt IPO: Arihant Capital Markets Limited
Vms Tmt IPO subscription was 102.24 X. IPO subscription refers to applications received in an IPO by each quota, i.e., QIB, Retail, and NII. In some IPOs, Eligible employee quota and shareholder’s quota are also present. Learn more about IPO subscriptions here.
Vms Tmt IPO listed at a listing price of 104.90 against the offer price of 99.00.
The current market price of Vms Tmt is 76.32.
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