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IPO Alert 2025: VMS TMT & Euro Pratik Sales – Should You Apply or Stay Away?

Writer
Nidhi Thakur
timer
September 16, 2025
IPO Alert 2025: VMS TMT & Euro Pratik Sales – Should You Apply or Stay Away?blog thumbnail

Quick Highlights

  • Both IPOs are rated "Avoid" by leading analysts due to aggressive pricing and operational concerns.
  • VMS TMT focuses on manufacturing TMT bars but shows declining revenue.
  • Euro Pratik Sales operates in the decorative laminates sector with high competition.
  • Despite strong FY25 projections, recent financial history raises red flags.
  • Investors are advised caution and should evaluate IPOs via SEBI-registered platforms like Swastika Investmart.

Introduction: AI Meets Commodities in 2025

2025 has been buzzing with IPO activity, with investors eyeing opportunities across manufacturing, fintech, and consumer sectors. Two upcoming IPOs—VMS TMT Limited and Euro Pratik Sales Limited—have drawn attention from both retail and institutional investors.

But are these IPOs worth your money?

Let’s break it down, compare the fundamentals, and help you make an informed decision.

VMS TMT Limited: Strong Base, Weak Momentum

What Does VMS TMT Do?

VMS TMT Limited manufactures Thermo Mechanically Treated (TMT) bars, essential in construction. It also trades in binding wires and scrap metal, operating primarily in Gujarat.

IPO Details

  • IPO Opens: September 17, 2025
  • Price Band: ₹94–99
  • Issue Size: ₹148.50 Cr (entirely fresh issue)
  • Listing on: BSE SME
  • Market Cap Post Listing: ₹491.35 Cr

Financial Snapshot

  • FY23 Revenue: ₹477.44 Cr
  • FY24 Revenue: ₹571.01 Cr
  • FY25 EBITDA Margin: 6.50%
  • FY25 PAT: ₹15.42 Cr
  • ROCE: 12.79%
  • EPS FY25: ₹4.45
  • P/E (FY25): 22.24x

Analysis

Although the company has a reasonable ROCE and is reducing debt through IPO proceeds, the sharp decline in revenue in FY23, followed by a slight recovery, signals volatility. The valuation at over 22x P/E appears expensive for an SME with inconsistent growth and a regional market.

The TMT bar industry is highly price-sensitive, with raw material cost fluctuations significantly affecting margins.

Euro Pratik Sales Limited: Attractive Design, But Risky Execution

What Does Euro Pratik Do?

Euro Pratik Sales sells and markets decorative wall panels and laminates, operating as a B2B and B2C distributor. The firm specializes in design-oriented interiors, appealing to real estate and renovation sectors.

IPO Details

  • IPO Opens: September 16, 2025
  • Price Band: ₹235–247
  • Issue Size: ₹451.31 Cr (offer for sale only)
  • Listing on: BSE SME
  • Market Cap Post Listing: ₹2534.24 Cr

Financial Snapshot

  • FY23 Revenue: ₹259.71 Cr
  • FY24 Revenue: ₹308.86 Cr
  • FY25 PAT: ₹76.44 Cr
  • ROCE: 44.58%
  • EPS FY25: ₹6.91
  • P/E (FY25): 33.02x

Analysis

While financial metrics for FY25 look stellar, the valuation of 33x P/E is aggressive. High margins (37.77% EBITDA) are impressive, but sustainability is questionable in a fragmented and low-entry-barrier industry.

The IPO is entirely an offer for sale, so no capital will flow into the company. It raises red flags for investors looking for growth and reinvestment.

Market Context: What Should Retail Investors Keep in Mind?

The IPO market in India has become increasingly valuation-driven, and many new listings post-2021 have seen initial spikes followed by price corrections.

In the case of VMS TMT and Euro Pratik Sales:

  • Both are SME listings, meaning they are not on the main boards and hence carry higher liquidity risk.
  • Valuations are not supported by historical performance.
  • Market sentiment is already cautious due to global economic uncertainty and inflationary pressures.

Investors should prioritize IPOs with clear growth visibility, reasonable pricing, and capital utilization plans that benefit long-term operations.

Real-World Scenario

Consider an investor in Gujarat looking to diversify their portfolio with regional companies. While VMS TMT seems geographically aligned, its declining FY23 numbers and small customer base could hinder long-term growth. Meanwhile, Euro Pratik Sales, despite a premium product image, may struggle with pricing pressure from unorganized sector players.

How Can Swastika Investmart Help?

Swastika Investmart, a SEBI-registered brokerage firm, empowers investors with:

  • Research-backed IPO insights
  • Tech-enabled platforms for effortless IPO applications
  • Dedicated customer support
  • Investor education tools to guide first-time investors

Whether you’re applying for an SME IPO or exploring mutual funds, Swastika ensures you make informed, confident decisions.

👉 Open a Free Demat Account with Swastika Investmart

FAQs

Q1. Are SME IPOs riskier than main board IPOs?
Yes, SME IPOs tend to have lower liquidity and higher volatility. They often lack institutional backing, making due diligence essential.

Q2. Why are both VMS TMT and Euro Pratik rated ‘Avoid’?
Despite strong future projections, both companies have aggressive valuations and red flags in past performance or industry dynamics.

Q3. What should investors look for before applying to any IPO?
Check for revenue consistency, valuation vs. peers, capital utilization plans, and post-IPO promoter holding.

Q4. Is it safe to apply to IPOs through Swastika Investmart?
Absolutely. Swastika is a SEBI-registered broker offering a secure, tech-enabled, and transparent IPO application process.

Q5. Can I invest in these IPOs using UPI?
Yes, through Swastika’s platform, you can apply for IPOs using UPI directly linked to your bank account.

Final Verdict: Stay Cautious, Stay Informed

While IPOs like VMS TMT and Euro Pratik Sales may seem attractive at first glance, a deeper dive reveals valuation mismatches and execution risks. Retail investors should prioritize fundamentals over hype.

For those looking to participate in safer, well-researched IPOs or need help navigating complex markets, Swastika Investmart is your trusted partner.

👉 Open Your Free Account with Swastika Now

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