Mumbai, Sep 12 (IANS) Gujarat-based Steel bars manufacturer VMS TMT Limited has reported a fall in its revenue for the financial year ended March 31, 2024, as the company posted Rs 872.95 crore in revenue, down 1 per cent from Rs 882.01 crore a year earlier, as per its latest financial disclosures.
According to its red herring prospectus (RHP), total income too fell by 1 per cent to Rs 873.16 crore against Rs 882.05 crore in the previous financial year.
However, steel bars maker has reported a strong surge in profitability. The company’s net profit rose more than three-fold, climbing 221 per cent to Rs 13.46 crore compared to Rs 4.19 crore in the previous year.
VMS TMT, which makes thermo mechanically treated (TMT) steel bars under the Kamdhenu brand, has filed its RHP with the Registrar of Companies and is set to launch its IPO on September 17.
The offering will consist entirely of a fresh issue of 1.5 crore equity shares, with all proceeds going directly to the company.
The IPO anchor book for institutional investors will open on September 16, and the issue will close for subscription on September 19.
The company plans to use Rs 115 crore from the IPO proceeds to repay borrowings, while the rest will be set aside for general corporate purposes.
As of June, its total borrowings stood at Rs 261.7 crore. The issue structure reserves 50 per cent of shares for retail investors, 30 per cent for qualified institutional buyers and the remaining 20 per cent for non-institutional investors.
VMS TMT operates primarily in Gujarat, manufacturing TMT bars from scrap and billets at its Bhayla Village plant in Ahmedabad, which has an installed capacity of two lakh metric tonnes per year.
The company’s IPO allotment will be finalised by September 22, with a planned listing on the stock exchanges on September 24.
The company had earlier filed draft IPO papers with SEBI on March 27, which were cleared on July 21. Arihant Capital Markets is acting as the sole book-running lead manager for the issue.
–IANS
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