VMS Industries Limited had tapped the capital markets with its IPO in a price band of Rs 36-40 to raise Rs 2575 lakhs. The issue was open from Monday the 30th of May to Thursday the 2nd of June. The company is in the business of Ship-breaking or Ship-recycling as it claims to be and also has a single tug which makes offshore services a second segment for the company.
The issue did not receive a single bid from QIB’s indicating the interest in the issue from investors. Retail investors have put in 3.41 times the category. The overall issue was subscribed 1.36 times.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 3576389 | NIL | 0 |
| NII | 1072917 | 1195200 | 1.11 |
| Retail | 2503472 | 8539200 | 3.41 |
| Overall | 7152778 | 9734400 | 1.36 |
This is yet another issue where fundamentals of the company do not justify the asking price. This assumption and analysis is supported by the fact that there was not a single bid form the QIB’s. One hopes and prays for the retail investors who have shown faith in the issue and subscribed 3.41 times.
