VMS TMT's Shares Slip 5 Pc To Lower Circuit On Market Debut

(MENAFN- IANS) Mumbai, Sep 24 (IANS) VMS TMT made its stock market debut on Tuesday with a premium listing but soon slipped under selling pressure.

The company's shares listed at Rs 104.90 on the National Stock Exchange (NSE), up 5.96 per cent from the IPO price of Rs 99, and at Rs 105 on the Bombay Stock Exchange (BSE) with a 6 per cent premium.

However, the gains did not last long, and the stock fell to its 5 per cent lower circuit of Rs 99.75 on the BSE in intra-day trade.

At this level, the shares were down 5 per cent from the listing price but still trading slightly above the issue price by 0.76 percent.

The Rs 148.50 crore IPO of VMS TMT received a strong response from investors, with an overall subscription of 102.26 times.

The qualified institutional buyers' portion was subscribed 120.80 times, non-institutional investors' segment 227.09 times, and the retail category 47.89 times.

Ahead of the IPO, the company raised Rs 26.73 crore from anchor investors, including Saint Capital Fund, Astrone Capital, Chanakya Opportunities Fund, Maybank Securities Pte, and Vbcube Ventures Fund.

VMS TMT, incorporated in 2013, is engaged in manufacturing Thermo Mechanically Treated (TMT) bars and also deals in scrap and binding wires, catering to customers in Gujarat and other states.

The IPO, which had a price band of Rs 94–Rs 99 per share, was entirely a fresh issue with no offer-for-sale (OFS) component.

The company said the proceeds will be used for general corporate purposes and repayment of certain borrowings.

It also expects the listing to boost visibility and brand recognition while providing liquidity to its equity shares.

Each lot of the IPO consisted of 150 shares. Investors who received an allotment made a listing gain of Rs 15,735 per lot, despite the stock hitting the lower circuit on debut.

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