Patna-based BMW Ventures has filed preliminary papers with the capital markets regulator SEBI for the fund raising via maiden public issue. The IPO consists of solely fresh issue of 2,34,18,000 equity shares by the company.
The issue would constitute 27 percent of the post-issue paid-up equity share capital of the company.
BMW, the distributor of long and flat steel products in Bihar, is planning to utilise fresh issue proceeds mainly for working capital requirements amounting to Rs 175 crore, and the remainder for general corporate purposes.
It intends to use Rs 140 crore in the current financial year 2025 and the remaining Rs 35 crore in next fiscal 2026.
The company deals in various steel products like TMT bars, GI sheet, HR sheet, Wire rods, galvanized color coated sheet, doors, GP sheet, pipes, hollow sections, and screw. It also manufactures PVC pipes.
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BMW Ventures clocked only 2.2 percent year-on-year growth in net profit at Rs 32.7 crore for the fiscal year 2023 despite healthy topline, impacted partly by weak operating margin and higher finance cost. Revenue from operations grew by 29 percent to Rs 2,015 crore compared to previous fiscal 2022.
On the operating front, its EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 5.9 percent to Rs 64.9 crore but margin fell 70 bps to 3.2 percent during the same period.
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Net profit for April to December period of FY24 stood at Rs 23.9 crore on revenue of Rs 1,394.8 crore.
Sarthi Capital Advisors is appointed as the merchant banker to the issue.
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