The VMS TMT IPO is currently in its second day of bidding, with the IPO closing on September 19, 2025. The IPO has garnered significant attention, with strong subscription numbers and grey market premium (GMP) indicating potential listing gains.

Subscription Status

On the first day, the VMS TMT IPO was subscribed 8.40 times. The strong demand was led by investors across all categories. As of 10:39 AM on the second day, the IPO has been subscribed 11.17 times.

Here's a breakdown of the subscription status as of September 18, 2025, 10:39 AM:

• Overall: 11.17 times
• Retail: 9.33 times
• QIB: 7.18 times
• NII: 18.18 times

Grey Market Premium (GMP)

The grey market premium (GMP) for VMS TMT shares is ₹24 today. This suggests that in the unlisted market, VMS TMT shares are trading at a premium of approximately 24.24% to the issue price of ₹99 per share. Based on this GMP, the estimated listing price is expected to be ₹122. However, it's important to note that GMP is an unofficial indicator and subject to market volatility.

IPO Details

VMS TMT is a Gujarat-based manufacturer of Thermo Mechanically Treated (TMT) Bars. The company's IPO aims to raise ₹148.50 crores through a fresh issue of 1.50 crore equity shares. The price band for the IPO is set at ₹94 to ₹99 per share. The minimum lot size for an application is 150 shares, requiring a minimum investment of ₹14,850 for retail investors based on the upper price band.

Financial Performance

VMS TMT's total income decreased from ₹882.06 crore in FY23 to ₹771.41 crore in FY25. However, the company's EBITDA grew at a CAGR of 44.16% from ₹21.91 crore in FY23 to ₹45.53 crore in FY25. Profit After Tax (PAT) also increased at a CAGR of 87.42%, from ₹4.20 crore in FY23 to ₹14.74 crore in FY25.

Key Dates

• IPO Open: September 17, 2025
• IPO Close: September 19, 2025
• Allotment Finalization: September 22, 2025 (expected)
• Demat Account Credit: September 23, 2025 (expected)
• Listing Date: September 24, 2025 (tentative)

Concerns

• A review suggests the IPO appears aggressively priced based on recent financial data.
• The company's debt-to-equity ratio of 3.78 as of June 30, 2025, is a cause for concern.
• Almost all sales are concentrated in Gujarat, making the company vulnerable to a slowdown in the state.
• The company's EBITDA margin at 5.9% is lower than peers.

Conclusion

The VMS TMT IPO has received a strong response on its first two days, with high subscription rates and a positive GMP. However, potential investors should consider the company's financial performance, debt levels, and other risk factors before investing.