Monitoring Agency Report for quarter ended on 31/12/2025
VMSTMT · price
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CARE Ratings, acting as the Monitoring Agency, submitted its report on VMS TMT's Rs.148.50 crore IPO proceeds for the quarter ending Dec 31, 2025. It flagged a deviation of Rs.2.81 crore: the company transferred Rs.40.19 crore to SVC Bank's cash credit account on Oct 4, 2025, but since the outstanding was only Rs.37.38 crore, the excess was diverted to working capital instead of repaying borrowings as stated in the prospectus. Total utilization during the quarter reached Rs.124.87 crore out of Rs.148.50 crore raised. The deviation was within the 10% range and no shareholder approval was taken, though the company later fully closed the SVC Bank facilities on Feb 4, 2026. Separately, the report notes the share price fell to Rs.51.01 as of Feb 10, 2026, sharply below the Rs.99 issue price.
While the Rs.2.81 crore deviation is small and has since been regularized with the bank loan closure, the use of IPO money outside stated objectives without shareholder approval is a governance concern. More alarming for investors is the stock trading roughly 48% below its issue price, signaling weak post-listing sentiment.