BMW Ventures IPO Day 2: Check subscription status, latest GMP. Apply or not?

BMW Ventures IPO: The initial public offer (IPO) of BMW Ventures entered its second day of bidding today, September 25. The issue opened for subscription on September 24 and will close on September 26.

The ₹231.66 crore IPO is priced in the range of ₹94-99 apiece.

BMW Ventures IPO Subscription

BMW Ventures IPO subscription status was 18% by 1:35 pm on day 2. The retail portion was subscribed 22%, and the NII portion has been booked 3%. The Qualified Institutional Buyers (QIBs) portion received 1.08 times bids.

The company received bids for 42,62,730 shares against 2,34,00,000 shares on offer.

BMW Ventures IPO GMP

BMW Ventures IPO GMP today, or grey market premium, is ₹6. This indicates BMW Ventures' share price is trading at a premium of ₹6 in the grey market on Thursday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the BMW Ventures is ₹105 apiece, which is 6.06% higher than the IPO price of ₹99.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

About BMW Ventures IPO

BMW Ventures' book-built issue comprises entirely of a fresh issuance of 2.34 crore shares.

The lot size for BMW Ventures IPO has been set at 151 shares. Retail investors looking to participate must apply for at least one lot, which translates to an investment of ₹14,949. The issue also includes a reservation of up to 73,099 shares for employees, who will be offered shares at a discount of ₹70 per share.

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

The company stated that the primary objective of the IPO is to meet its working capital requirements. Additionally, part of the funds will be used to cover IPO expenses and for other general corporate purposes.

Founded in 1994 and based in Patna, BMW Ventures operates primarily as a distributor of long and flat steel products, such as TMT bars, GC/GP/HR sheets, and wire rods, which account for over 97 per cent of its revenue. Alongside steel distribution, the company also deals in tractor engines and spare parts. It has small-scale operations in PVC pipes, pre-engineered buildings (PEB) fabrication, and RDSO-approved steel girders for the Indian Railways.

While BMW Ventures is largely a steel distributor, its listed peers used for valuation include downstream steel and pipes manufacturers such as APL Apollo Tubes and Hi-Tech Pipes.

BMW Ventures reported a net profit of ₹32.82 crore for the financial year ended March 31, 2025, compared to ₹29.94 crore in the previous year. Revenue for FY25 stood at ₹2,067.33 crore, up from ₹1,942.03 crore in FY24. At current valuations, the company commands a market capitalisation of around ₹860 crore.

BMW Ventures IPO: Apply or not?

BMW generates 98 per cent of its revenues from the distribution of steel products in Bihar and held a strong 19 per cent market share in the TMT bars segment in the state during FY24. However, based on its financial performance, revenue, and PAT recorded a modest CAGR of 1.2 per cent and 0.3 per cent, respectively, between FY23 and FY25, SBI Securities said.

The company’s debt-to-equity ratio stood at 2 times in FY25, which is expected to decline to 1 time post-issue, potentially enhancing profitability. Operating cash flows also improved in FY25. Post-issue, BMW Ventures is valued at a P/E multiple of 26.2 times and an EV/EBITDA multiple of 12.7 times. SBI Securities maintained an ‘avoid’ rating, citing high valuations and associated risk factors.

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