Post by : Raman

New Delhi: BMW Ventures Limited has launched its initial public offering (IPO) today, September 24, 2025. The IPO will remain open for subscription until September 26. The company is raising ₹231.66 crore through a book-built issue, with a fixed price band of ₹94-99 per share.

On the first day of subscription, by 10:50 am, the issue was subscribed 0.03 times. The IPO received bids for 6.64 lakh shares against 2.34 lakh shares on offer. The retail portion was subscribed 0.04 times, while the non-institutional investors (NII) and qualified institutional buyers (QIBs) portions have not received any bids yet.

The IPO has not seen activity in the grey market, with a GMP of ₹0. This suggests that the shares are expected to list near the upper price band of ₹99, same as the IPO price.

The IPO consists of a fresh issuance of 2.34 crore shares. The lot size is 151 shares, meaning retail investors must invest at least ₹14,949 for one lot. Employees have a reserved quota of 73,099 shares, which they can purchase at a discounted price of ₹70 per share.

The basis of allotment is expected to be finalized on September 29, with shares likely to list on October 1. Sarthi Capital Advisors Pvt. Ltd. is the book-running lead manager, while Cameo Corporate Services Ltd. is the registrar for the IPO.

Founded in 1994 and based in Patna, BMW Ventures primarily distributes long and flat steel products, including TMT bars, GC/GP/HR sheets, and wire rods, which make up over 97% of its revenue. The company also deals in tractor engines, spare parts, PVC pipes, pre-engineered buildings (PEB), and RDSO-approved steel girders for Indian Railways.

Although primarily a steel distributor, BMW Ventures’ listed peers include downstream steel and pipe manufacturers like APL Apollo Tubes and Hi-Tech Pipes.

BMW Ventures reported a net profit of ₹32.82 crore for FY25, up from ₹29.94 crore in FY24. Revenue for FY25 stood at ₹2,067.33 crore, compared to ₹1,942.03 crore in FY24. The company commands a market capitalization of around ₹860 crore at current valuations.

The company holds a strong 19% market share in Bihar’s TMT bars segment. However, its revenue and net profit recorded a modest CAGR of 1.2% and 0.3%, respectively, between FY23 and FY25. Its debt-to-equity ratio stood at 2 times in FY25, which is expected to reduce to 1 time after the IPO, potentially improving profitability. Post-issue, BMW Ventures is valued at a P/E multiple of 26.2 times and EV/EBITDA multiple of 12.7 times. Despite its strong presence, SBI Securities has maintained an ‘avoid’ rating due to high valuations and associated risks.

The company stated that the primary purpose of the IPO is to meet working capital requirements. Funds will also cover IPO expenses and other general corporate purposes.

Investors considering the BMW Ventures IPO should carefully review financial performance, market position, and risk factors before subscribing.

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