The initial public offering (IPO) of BMW Ventures has started drawing notable attention in the market, reflecting early investor interest in the company’s growth story. As of September 25, the IPO has seen 17% subscription on its second day of public bidding, underlining cautious but growing participation.
The Rs 231.66-crore IPO marks a significant step for this Bihar-based steel products distributor, which also deals in tractor engines, spare parts, PVC pipes, pre-engineered buildings, and steel girders. Investors are watching closely as the firm enters the capital markets to fund its expansion and working capital requirements.
Market Performance: Early Subscription Trends
On the second day of public bidding:
- The IPO received bids for nearly 41 lakh shares against the total offer size of 2.34 crore shares.
- Qualified Institutional Buyers (QIBs) have already fully subscribed their portion at 108%, showing strong institutional backing.
- Retail Individual Investors (RII) booked 21% of their allocated portion.
- Non-Institutional Investors (NII) accounted for 3% of their reserved quota.
These early numbers indicate higher traction among institutional participants, with retail investors gradually joining the bidding.
Key IPO Details
BMW Ventures’ IPO is structured as a fully fresh issue:
- Total size: Rs 231.66 crore
- Shares on offer: 2.34 crore shares
- Price band: Rs 94–99 per share
- Minimum application: 151 shares, requiring Rs 14,949 at the upper price band
- Public bidding window: September 24 to September 26
- Allotment likely: September 29
- Listing date: October 1
Allocation breakdown:
- QIBs: 50%
- Retail investors: 35%
- NIIs: 15%
This structured allocation aims to balance institutional confidence with retail participation while ensuring a transparent subscription process.
Use of IPO Proceeds
BMW Ventures plans to deploy the funds raised strategically:
- Working capital requirements: Rs 173.75 crore
- General corporate purposes: Remaining amount
The capital infusion is intended to support operational expansion, strengthen liquidity, and scale manufacturing and distribution operations.
Company Overview
BMW Ventures operates as a diversified steel products and engineering company in Bihar, with a market presence across multiple sectors:
- Steel products distribution
- Trading of tractor engines and spare parts
- Manufacturing of PVC pipes
- Fabrication of pre-engineered buildings and steel girders
For FY25, the company recorded:
- Revenue: Rs 2,062 crore, up 6.4% from Rs 1,938.2 crore in FY24
- Net Profit: Rs 32.8 crore, a 9.6% increase from Rs 29.9 crore last year
Valued at Rs 858 crore at the upper price band, BMW Ventures demonstrates consistent growth, making the IPO a significant milestone for the company’s financial and operational expansion plans.
Summary
The BMW Ventures IPO is steadily gaining traction, with strong QIB participation and gradual retail investor interest. With a total size of Rs 231.66 crore, the IPO aims to support the company’s working capital needs and future expansion plans. Early subscription trends reflect confidence in the company’s operational model, diversified business segments, and revenue growth trajectory. Investors following the stock market today are closely tracking BMW Ventures as it prepares for its listing on October 1.
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