VMS TMT hit a day high of Rs 44.60 on 29 June after its board approved a merger with Aditya Ultra Steel, subject to regulatory approvals.

Both companies currently manufacture TMT steel bars under the Kamdhenu brand but operate in different parts of Gujarat.

The merger folds Aditya Ultra Steel into VMS TMT as one listed company, creating a unified management team, a single balance sheet and a consolidated distribution network.

Under the share-swap, shareholders of Aditya Ultra Steel will receive 75 VMS TMT shares for every 100 shares they currently hold, once all approvals are in place.

The combined business will have an installed manufacturing capacity exceeding 3 lakh tonnes per annum, with a dealer network of over 300 dealers across Gujarat.

The company expects the integration to generate efficiencies across procurement, logistics and working capital.

Varun Jain, Chairman and Managing Director of VMS TMT, said the amalgamation marks a defining milestone in the company’s growth journey, creating a unified platform with stronger manufacturing, wider distribution and improved financials.

The transaction is not classified as a related-party transaction under the Companies Act, 2013, given the nature of the NCLT-sanctioned scheme.

On the financials, VMS TMT reported FY26 total income of Rs 840.20 crore and a net profit of Rs 21.03 crore. For Q4FY26, revenue from operations came in at Rs 241.35 crore with a net profit of Rs 2.29 crore.

Shares of VMS TMT closed at Rs 43.50, down 0.66%, on BSE on 29th June.

Feeling overwhelmed by the markets? Let Tradz by EquityPandit be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!