September 2025 has become one of the busiest months for IPO investors. Two very different companies are making their market debut:
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VMS TMT IPO – A steel manufacturer with strong infrastructure and supply chain in Gujarat.
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Urban Company IPO – India’s leading tech-enabled home services marketplace.
While both IPOs are drawing investor attention, their fundamentals, risks, and valuations differ widely. This article compares the VMS TMT IPO vs Urban Company IPO to help investors decide which one fits their portfolio better.
VMS TMT IPO: Steel Sector Play with Hidden Risks
IPO Details
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Price Band: ₹94 – ₹99
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Lot Size: 150 shares (₹14,850 minimum investment)
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Issue Size: ₹148.50 Cr (Fresh issue of 1.50 Cr shares)
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IPO Dates: Sep 17 – Sep 19, 2025
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Listing Date: Tentative Sep 24, 2025 (BSE, NSE)
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Registrar: Kfin Technologies Ltd.
Business Overview
VMS TMT Ltd. manufactures Thermo Mechanically Treated Bars (TMT Bars), binding wires, and scrap products. The company has 227 dealers & 3 distributors in its network, with a plant strategically located in Ahmedabad, Gujarat.
It also has a retail licensing agreement with Kamdhenu Limited, enabling it to sell under the Kamdhenu NXT brand.
Financial Highlights (₹ Cr)
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FY23 Revenue: ₹882.06 → FY24 Revenue: ₹873.17 → Q1 FY25 Revenue: ₹213.39
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FY23 PAT: ₹4.20 → FY24 PAT: ₹13.47 → Q1 FY25 PAT: ₹8.58
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Borrowings: ₹309.18 Cr (as of Jun 2025)
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RoNW: 20.14% | P/E: ~23.07x (industry avg ~9.47x)
Strengths
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Established supply chain & backward integration
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Strong dealer/distributor network
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Growing financials with improved PAT
Weaknesses / Risks
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Heavy reliance on Kamdhenu brand license (non-exclusive)
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Restricted growth areas (can’t sell in Saurashtra & Kutch due to group firm agreements)
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High debt levels & group company borrowings
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Pending GST claims & weak insurance coverage
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Promoter group defaulter history
GMP Update
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As of Sep 12, 2025, VMS TMT IPO GMP is ₹10
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Expected listing price = ₹109 (₹99 issue price + ₹10 GMP)
👉 Best for: Medium-risk investors looking at cyclical steel industry exposure, but only after factoring in corporate governance risks.
Urban Company IPO: Tech-Led Home Services Growth Story
IPO Details
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Price Band: ₹98 – ₹103
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Lot Size: 145 shares (₹14,935 minimum investment)
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Issue Size: Approx ₹1,200 Cr (fresh issue + OFS)
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Listing at: NSE & BSE
Business Overview
Urban Company is India’s largest home services marketplace, offering cleaning, beauty, repair, and installation services across India, UAE, and Singapore.
