BMW Ventures IPO: A Comprehensive Overview for Indian Investors
The BMW Ventures Ltd. initial public offering (IPO) has garnered significant attention from investors, with its subscription status and grey market premium (GMP) being closely watched. In this article, we will delve into the details of the IPO, its day 3 subscription status, GMP, and other key aspects that Indian investors should be aware of.
Day 3 Subscription Status
The BMW Ventures IPO was subscribed 1.5 times on its final day of subscription on Friday, indicating a moderate response from investors. The IPO was subscribed 150 times or 22% on its second day on Thursday, while it was subscribed 0.11 times or 11% on its first day, led by institutional investors.
IPO Details
The offering aims to raise up to Rs 231.66 crore, with a price band set at Rs 94 to Rs 99 per share. The 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.
Investor Details
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 the IPO.
Key Dates
The key dates for the BMW Ventures IPO are as follows:
- 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
Business Overview
BMW Ventures is involved in the distribution of long and flat steel products, including TMT bars, GI sheets, HR sheets, wire rods, galvanized color-coated sheets, and doors. The company is also engaged in the distribution of tractor engines and spare parts to dealers. Additionally, it is involved 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.
Use of Proceeds
The company plans to use the proceeds from the fresh issue worth up to Rs 174 crore for debt repayment and the remaining amount for its general corporate purposes. As of March 31, 2025, the company had total borrowings of Rs 428 crore on a consolidated basis and accrued interest on borrowings.
Subscription Status
The BMW Ventures IPO was subscribed 1.50 times as of 7:00 p.m. on Friday, with the following category-wise subscription status:
- Institutional investors (QIB): 3.09 times
- Non-Institutional investors (NII): 3.03 times
- Retail investors: 0.99 times or 99%
Grey Market Premium (GMP)
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. Please note that GMP does not represent official data and is based on speculation.
Conclusion
In conclusion, the BMW Ventures IPO has garnered a moderate response from investors, with its day 3 subscription status and GMP being closely watched. Indian investors should carefully evaluate the company’s business overview, use of proceeds, and financials before making an investment decision. It is essential to stay updated with the latest news and developments related to the IPO to make informed investment choices.
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