From filter menu select "Liquify". Select forward warp tool and distort the text as shown below.
Similarly distort the other alphabets. Select all the alphabet layers and merge them.
Create a circle using elliptical shape tool. Enable add to shape area from the top bar. Create more circle with random sizes.
Press Ctrl+Alt+G to create a clipping mask. Select and merge both the layers.
Double click the layer to open layer style window. Apply settings as shown.
Duplicate layer. Enable lock transparent pixels from layer palette. Press Ctrl+T. Right click the layer and select vertical. Fill it with gray color. Move this layer below all the layers in layer order in layer palette.
