VMS TMT shares jump 6% to Rs 105 in market debut trade

New Delhi: Shares of TMT bars manufacturer VMS TMT Ltd on Wednesday listed with a premium of 6 per cent against the issue price of Rs 99.

The stock started trading at Rs 105, up 6 per cent from the issue price on the BSE.

At the NSE, it listed at Rs 104.90, a jump of 5.95 per cent.

The company's market valuation stood at Rs 500.78 crore.

The Initial Public Offering (IPO) of VMS TMT Ltd garnered a whopping 102.26 times subscription on the closing day of share sale on Friday last week, driven by strong investors' participation. The Rs 148.50 crore IPO had a price band of Rs 94-99 per share.

The company's IPO was entirely a fresh issue of 1.50 crore equity shares.

Proceeds from the fresh issue to the tune of Rs 115 crore will be used for repayment of debt and balance for general corporate purposes and issue expenses.

Incorporated in 2013, VMS TMT Ltd is primarily engaged in the manufacturing of thermo-mechanically treated bars (TMT Bars).

The company also deals in scrap and binding wires, which are sold within Gujarat and other states.