Why Did VMS TMT’s Shares Drop 5% on Market Debut?
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Synopsis
VMS TMT made a splash with its IPO debut, listing at a premium before experiencing a sharp decline. Investors were initially optimistic as shares opened at Rs 104.90 but quickly hit the lower circuit. Discover the details behind this intriguing market performance and what it means for future investors.
Key Takeaways
- VMS TMT’s shares opened at Rs 104.90
- IPO was subscribed 102.26 times overall
- Shares fell to a lower circuit of Rs 99.75
- Funds will be used for corporate purposes and debt repayment
- Each IPO lot comprised 150 shares
Mumbai, Sep 24 (NationPress) VMS TMT made its debut on the stock market on Tuesday, initially enjoying a premium listing before encountering selling pressure.
The company’s shares opened at Rs 104.90 on the National Stock Exchange (NSE), reflecting a 5.96 percent increase from the IPO price of Rs 99, and at Rs 105 on the Bombay Stock Exchange (BSE), indicating a 6 percent premium.
Unfortunately, these gains were short-lived as the stock quickly dropped to its 5 percent lower circuit of Rs 99.75 on the BSE during intra-day trading.
At this point, the shares were down 5 percent from their listing price but still held a slight advantage over the issue price by 0.76 percent.
VMS TMT's IPO, valued at Rs 148.50 crore, garnered an impressive response from investors, achieving an overall subscription rate of 102.26 times.
The portion for qualified institutional buyers was subscribed 120.80 times, while non-institutional investors’ segment reached 227.09 times, and retail investors participated at 47.89 times.
Before the IPO, the company secured Rs 26.73 crore from anchor investors, including Saint Capital Fund, Astrone Capital, Chanakya Opportunities Fund, Maybank Securities Pte, and Vbcube Ventures Fund.
Founded in 2013, VMS TMT specializes in manufacturing Thermo Mechanically Treated (TMT) bars and also trades in scrap and binding wires, serving customers in Gujarat and various other states.
The IPO, which had a price range of Rs 94–Rs 99 per share, was exclusively a fresh issue without any offer-for-sale (OFS) component.
The company stated that the funds raised would be allocated for general corporate purposes and repayment of certain debts.
Additionally, it anticipates that the listing will enhance visibility and brand recognition while offering liquidity to its equity shares.
Each lot of the IPO comprised 150 shares. Investors who received allotments experienced a listing gain of Rs 15,735 per lot, even though the stock hit its lower circuit on debut.
Point of View
I observe that VMS TMT's market performance reflects the volatile nature of stock exchanges. While the initial enthusiasm from investors was palpable, the rapid decline serves as a reminder of the risks involved in trading. It's essential for potential investors to conduct thorough research and understand market trends before making decisions.
NationPress
24/09/2025
Frequently Asked Questions
What was the subscription rate for VMS TMT's IPO?
VMS TMT's IPO was subscribed 102.26 times overall, with institutional buyers at 120.80 times, non-institutional investors at 227.09 times, and retail investors at 47.89 times.
What is the purpose of the funds raised in the IPO?
The proceeds from the IPO will be used for general corporate purposes and to repay certain borrowings.
What type of products does VMS TMT manufacture?
VMS TMT manufactures Thermo Mechanically Treated (TMT) bars and also deals in scrap and binding wires.
What was the listing price of VMS TMT shares?
The shares of VMS TMT listed at Rs 104.90 on the NSE and Rs 105 on the BSE.
How many shares were in each lot of the IPO?
Each lot of the VMS TMT IPO consisted of 150 shares.
