BMW Ventures IPO: A Comprehensive Overview
BMW Ventures Ltd.’s initial public offering has garnered significant attention from investors, with its final day of subscription witnessing a subscription of 1.5 times on Friday. The IPO’s journey began on Wednesday, with a modest subscription of 0.11 times, primarily driven by institutional investors. However, the second day saw a substantial surge, with the IPO being subscribed 150 times or 22%.
The offering, which aims to raise up to Rs 231.66 crore, has a price band set at Rs 94 to Rs 99 per share. This Bihar-based company’s IPO comprises only a fresh issue of 2.34 crore equity shares, with no offer for sale component. The market capitalization based on the upper price band of BMW Ventures is Rs 858.48 crore.
Key IPO Details
- Opening date: September 24
- Closing date: September 26
- IPO size: Rs 231.66 crore (fresh issue only)
- Price band: Rs 94 to Rs 99 per share
- Lot size: 151 shares
- Allotment date: September 29
- Listing date: October 1
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. Sarthi Capital Advisors Pvt. is the sole book-running lead manager for this IPO.
Business Overview
BMW Ventures is involved in the distribution of long and flat steel products, including TMT bars, GI sheets, HR sheets, wire rods, galvanised colour-coated sheets, and doors. Additionally, the company distributes tractor engines and spare parts to dealers. Beyond distribution, BMW Ventures is also engaged in the fabrication of Pre-Engineered Buildings (PEB), manufacturing of PVC pipes, and RDSO-approved manufacturing of steel girders used in the construction of bridges for Indian Railways in Bihar.
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IPO Proceeds Utilization
The company plans to use the proceeds from the fresh issue, worth up to Rs 174 crore, for debt repayment. The remaining amount will be utilized for general corporate purposes. As of March 31, 2025, BMW Ventures had total borrowings of Rs 428 crore on a consolidated basis, along with accrued interest on borrowings.
Subscription Status
The BMW Ventures IPO was subscribed 1.50 times as of 7:00 p.m. on Friday, with a breakdown as follows:
- Institutional investors (QIB): 3.09 times
- Non-Institutional investors (NII): 3.03 times
- Retail investors: 0.99 times or 99%
The latest grey market premium of BMW Ventures is Rs 2 as of 6:56 p.m., indicating a premium of 2.02% and an estimated listing price at Rs 101. It’s essential for investors to note that the grey market premium does not represent official data and is based on speculation.
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Conclusion
The BMW Ventures IPO presents an opportunity for investors to participate in the growth of a company involved in diverse sectors such as steel distribution, tractor engine distribution, and manufacturing. With its strong subscription status and planned utilization of IPO proceeds for debt repayment and general corporate purposes, BMW Ventures aims to strengthen its financial position and drive future growth.