BMW Ventures IPO: Check Price Band, Financials, Use Of Proceeds And Other Details
BMW Ventures IPO: The company is set to use proceeds from the fresh issue worth up to Rs 174 crore for debt repayment.
BMW Ventures Ltd.'s initial public offering to raise up to Rs 231.66 crore will open on Wednesday, Sept. 24 and close on Friday, Sept. 26. The price band has been set at Rs 94 to Rs 99 per share.
The Bihar-based company's IPO will comprise only a fresh issue of 2.34 crore equity shares, with no offer for sale component. The market capitalisation based on the upper price band of BMW Ventures is Rs 858.48 crore.
Investors can bid for a minimum of 151 shares and in multiples thereof. The minimum amount of investment required by a retail investor is Rs 14,949 based on the upper price band.
The allotment of shares to IPO investors will be finalised on Sept. 29. BMW Ventures will list on BSE and NSE on Oct. 1.
Sarthi Capital Advisors Pvt. is the sole book-running lead manager.
About The Company
BMW Ventures is involved in the distribution of long and flat steel products. The company deals in steel products including TMT bars, GI sheets, HR sheets, wire rods, galvanised colour-coated sheets, and doors.
The company is also engaged in distribution of tractor engines and spare parts to dealers. Apart from distribution, it is also engaged in fabrication of Pre Engineered Buildings (PEB), manufacturing of PVC pipes and RDSO approved manufacturing of steel girders used in construction of bridges for Indian Railways in Bihar.
"Collectively we are into business of distribution of steel product and tractor Engines and spare parts and fabrication and manufacturing of PEB, PVC and Steel Girders. Our Steel distribution business is much larger in terms of revenue compared to manufacturing or fabrication verticals," the company said.
Since 1996, the distribution of steel products has been the company's primary business vertical or segment, accounting for over 97% of their revenue from operations.
Use Of Proceeds
BMW Ventures is set to use proceeds from the fresh issue worth up to Rs 174 crore for debt repayment and the remaining amount will be kept for its general corporate purposes.
As on March 31, 2025, the company had total borrowings of Rs 428 crore on a consolidated basis and accrued interest on borrowings.
Financials
BMW Ventures' revenue increased by 6% year-on-year to Rs 2,062 crore in financial year 2025. Net profit rose by 10% to Rs 32.8 crore.
On the operating level, Ebitda stood at Rs 87.39 crore, translating into a margin of 4.2%.
Strength And Weakness
BMW Ventures has a strong dealers' distributorship network in long and flat steel products. It has a strong leadership position in the trading of TMT bars and other allied steel products.
Although, the company is heavily reliant on its home state of Bihar which contributes 98.49% of the operating revenue. The business is also heavily dependent on steel costs. Delays, shortages, or price changes in steel could harm its operations.
