VMS TMT Limited (“Company”), engaged in manufacturing of thermo mechanically treated bars (“TMT Bars”), has filed draft red herring prospectus with the Securities and Exchange Board of India to raise funds by way of an initial public offering (“Issue”).
The Company plans to mobilise funds solely via fresh issue of upto 1,50,00,000 equity shares. Out of the net proceeds of the Issue, it intends to spend Rs. 4640.00 lakhs, towards funding capital expenditure for setting up of solar power plant, Rs. 3000.00 lakhs towards funding long-term working capital requirements, Rs. 1100.00 lakhs for towards repayment/ prepayment, in full or part, of certain borrowings availed by the Company; and the remainder amount for general corporate purposes.
The capital expenditure from the issue proceed includes backward integration project to cut operational costs, setting up a 15MW solar power plant to reduce power expenses, diversifying into production and sale of MS pipes. The total outstanding borrowings of the company amounted to Rs. 25,251.83 lakhs as of 31 August 2024.
Promoters of the Company holds an aggregate of 96.28% shareholding in the Company, while the remaining 3.72% is held by the member of promoter group and public shareholders inter-alia including Chanakya Opportunities Fund I and Kamdhenu Limited.
VMS TMT Limited, is a Gujarat-based company situated in Bhayla Village Near Water Tank Bavla, Ahmedabad having annual installed capacity of 2 lakh metric tonnes (MT) per annum for TMT bar production and production of TMT bars was 1,60,321 MT in Fiscal 2024.
The TMT Bars industry in India is experiencing significant growth, fuelled by increasing demand from the construction, infrastructure, and real estate sectors. Crude steel production has expanded steadily, bolstered by government initiatives like the 'Make in India' policy and strategic infrastructure projects.
Key demand drivers include urbanization, large-scale infrastructure projects such as highways, airports, and railways, and the ongoing development of residential real estate.
