Board Approves Amalgamation Scheme
VMS TMT Limited, a leading Gujarat-based manufacturer of Thermo-Mechanically Treated (TMT) steel bars, announced that its Board of Directors has approved the Scheme of Amalgamation for merging Aditya Ultra Steel Limited (AUSL) into VMS TMT. The move is subject to statutory and regulatory approvals from SEBI, NCLT, BSE, NSE, shareholders, and creditors.
The proposed amalgamation is a transformational milestone aimed at creating a larger, stronger, and more integrated steel manufacturing enterprise with enhanced capabilities, broader market reach, improved operational efficiencies, and greater financial strength.
Strategic Rationale and Benefits
Both VMS TMT and Aditya Ultra Steel are well-established manufacturers of premium TMT bars under the Kamdhenu brand ecosystem across Gujarat. The integration will unify operations and unlock significant synergies.
Key benefits include a unified brand presence across Gujarat, an expanded distribution network of over 300 dealers, combined installed manufacturing capacity exceeding 300,000 tonnes per annum, operational synergies in procurement, production, logistics, and distribution, and a stronger financial profile with a larger balance sheet and improved flexibility for future growth.
Share Exchange Ratio
Under the approved scheme, shareholders of Aditya Ultra Steel Limited will receive 75 equity shares of VMS TMT Limited for every 100 equity shares held in AUSL, subject to the terms of the scheme and receipt of all applicable approvals.
Management Commentary
Mr. Varun Jain, Chairman & Managing Director of VMS TMT Limited, said: "The proposed amalgamation marks a defining milestone in VMS TMT's evolution and reinforces our commitment to building a stronger, future-ready steel enterprise. By bringing together two highly complementary businesses, we are creating an integrated platform with enhanced manufacturing capabilities, a wider distribution footprint, stronger financials, and greater operational efficiencies. This strategic combination positions us to serve our customers more effectively, strengthen our leadership across Gujarat, capitalize on emerging growth opportunities, and deliver sustainable long-term value to our shareholders."
About VMS TMT Limited
VMS TMT Limited manufactures premium TMT bars under the "Kamdhenu NXT" brand, and also deals in scrap and binding wires. The company serves customers across Gujarat through an established distribution network, focusing on quality, operational excellence, and customer satisfaction.
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