The initial public offer (IPO) of VMS Industries was subscribed 47% by 16:00 IST on the third day of bidding for the issue today, 1 June 2011. The IPO received bids for 33.42 lakh shares as against 71.52 lakh shares on offer.

The price band for the IPO has been fixed at Rs 36 at lower level and Rs 40 at upper level. The issue closes for subscription on 2 June 2011

VMS Industries is engaged in ship recycling activities and offshore support business activities. VMS also holds 25% stake in a partnership firm 'Eternal Automobiles' which is a dealer of two wheelers for 'Honda Motor Cycle and Scooter India'.

The funds raised through the IPO will be used for modernisation of ship recycling plot, to set up corporate office in Ahmedabad and for working capital requirement.

Rating firm ICRA has assigned grade 1/5 indicating poor fundamentals, to the proposed initial public offering (IPO) of VMS Industries.