VMS TMT Limited Approves Amalgamation of Aditya Ultra Steel to Boost Market Presence

VMS TMT Limited Approves Amalgamation of Aditya Ultra Steel to Boost Market Presence​

Ahmedabad, India – June 27, 2026. VMS TMT Limited, a prominent manufacturer of Thermo-Mechanically Treated (TMT) steel bars in Gujarat, announced that its Board of Directors has approved the Scheme of Amalgamation for the merger of Aditya Ultra Steel Limited (AUSL) into VMS TMT Limited. The amalgamation is intended to create a larger and more integrated steel manufacturing enterprise with enhanced capabilities across various operational aspects.

The strategic move integrates two established manufacturers of premium-quality TMT bars, both operating under the Kamdhenu brand ecosystem across different territories in Gujarat. By merging these complementary businesses into a single listed entity, VMS TMT aims to achieve seamless operations within the state and unlock significant financial and operational synergies.

Key benefits resulting from the combined entity include:

• Unified Brand Presence: The merger will consolidate the "Kamdhenu" brand footprint throughout Gujarat, establishing a stronger market presence and a unified customer proposition.
• Expanded Distribution: The company will benefit from a significantly enhanced distribution platform, which includes over 300 dealers and multiple distributors, improving market penetration and customer reach.
• Enhanced Manufacturing Scale: The combined installed manufacturing capacity is noted at over 300,000 tonnes per annum, facilitating substantial economies of scale across procurement, production, logistics, and distribution.
• Resource Synergies: Improved utilization of manufacturing facilities, renewable energy assets, human capital, and working capital are expected to enhance productivity and cost efficiencies.
• Stronger Financial Profile: The combined entity will feature a larger balance sheet, simplified corporate structure, improved financial flexibility, and enhanced capability to pursue future growth opportunities.

The amalgamation is set to strengthen market leadership by combining the manufacturing infrastructure, distribution network, management expertise, and financial resources of both companies. This integration is expected to enhance customer service through a unified supply chain and reinforce VMS TMT's standing within Gujarat's steel industry.

Under the approved Scheme of Amalgamation, shareholders of Aditya Ultra Steel Limited will receive 75 equity shares of VMS TMT Limited for every 100 equity shares held in Aditya Ultra Steel Limited, subject to necessary approvals.

Commenting on the approval, Mr. Varun Jain, Managing Director and Chairman of VMS TMT Limited, stated that the amalgamation represents a defining milestone in the company's evolution. He emphasized that by combining two highly complementary businesses, they are creating an integrated platform with enhanced manufacturing capacity and financial strength. This strategic combination is intended to help the company serve customers more effectively and capitalize on emerging growth opportunities across India’s infrastructure and construction sectors.

VMS TMT Limited continues to manufacture premium-quality Thermo-Mechanically Treated (TMT) bars marketed under the "Kamdhenu NXT" brand, in addition to dealing in scrap and binding wires across Gujarat.

VMSTMT Stock Price Movement​

VMS TMT Limited shares slipped by 0.18% on Thursday, closing at ₹43.6. The equity traded a total of 17,485 shares during the session.