Mumbai’s VMS TMT hit the stock market for the first time on Tuesday, starting strong with a premium listing before sellers pushed it down.
Shares opened at Rs 104.90 on the National Stock Exchange (NSE), a 5.96% jump from the IPO price of Rs 99. On the Bombay Stock Exchange (BSE), they debuted at Rs 105, up 6%. But the excitement faded fast. During trading, the stock dropped to its 5% lower limit of Rs 99.75 on the BSE. That put it 5% below the opening price, though still 0.76% above the original issue price.
The Rs 148.50 crore VMS TMT IPO drew huge interest from investors, getting subscribed 102.26 times overall. Qualified institutional buyers snapped up their share 120.80 times, non-institutional investors went even higher at 227.09 times, and retail folks subscribed 47.89 times.
Before the IPO, VMS TMT pulled in Rs 26.73 crore from anchor investors like Saint Capital Fund, Astrone Capital, Chanakya Opportunities Fund, Maybank Securities Pte, and Vbcube Ventures Fund.
Founded in 2013, VMS TMT makes Thermo Mechanically Treated (TMT) bars and trades in scrap and binding wires. It serves customers mainly in Gujarat but also reaches other states. The IPO was a fresh issue only—no offer-for-sale—with shares priced between Rs 94 and Rs 99 each.
The company plans to use the money for everyday business needs and paying back some loans. They hope the stock market debut will raise their profile, build the brand, and make it easier for shareholders to trade shares.
Each IPO lot included 150 shares. Those who got allotments pocketed a Rs 15,735 gain per lot based on the opening price, even as the stock touched its lower circuit right away.
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