BMW Ventures Share Price Hits Lower Circuit After Lacklustre Listing

BMW Ventures shares hit had the lower circuit as it slipped below Rs 65.17. The scrip declined nearly 10% this week after the D-Street debut with shares settling at Rs 80 on the BSE and Rs 78 on the NSE. The discounted listing came below the issue price of Rs 99.

This marks a decline of approximately 19.2% on the BSE and 21.2% on the NSE. The initial public offering of BMW Ventures was oversubscribed 1.5 times on the third and final day of bidding on September 26. According to BSE data, the IPO received bids for 3,51,67,598 shares against 2,34,00,000 offered.

The Qualified Institutional Buyers (QIBs) booked the issue 3.09 times. The Non-Institutional Investors’ (NIIs) category was subscribed 3.03 times. Retail investors booked their quota 0.99 times. 

The offering, which aimed to raise up to Rs 231.66 crore and had a price band set at Rs 94 to Rs 99 per share.

The Bihar-based company's IPO comprised only a fresh issue of 2.34 crore equity shares, with no offer for sale component. Sarthi Capital Advisors Pvt. was the sole book-running lead manager.

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.

BMW Ventures stock fell as much as 5% during the day to Rs 63.52 apiece on the NSE. It was trading 5% lower at Rs 63.52 apiece, compared to an 0.31% advance in the benchmark Nifty 50 as of 10:59 a.m. There are no Bloomberg anlysts' tracking the counter.