BMW Ventures IPO subscribed 22% on Day 2, GMP rises: Should you apply?

BMW Ventures IPO Day 2

The initial public offering of BMW Ventures has been subscribed 22 percent on its second day of public bidding (September 25) so far. The steel products distributor aims to raise Rs 231.66 crore through its IPO.

The maiden public issue of the company received bids for 52 lakh shares, as against the offer size of 2.34 crore shares, according to data on Investorgain. The portion kept for Qualified Institutional Buyers (QIB) has been fully subscribed (108 percent). Retail Individual Investors (RII) have subscribed to 27 percent of their reserved portion, while 5 percent of the quota for Non Institutional Investors (NII) has been booked so far.

BMW Ventures IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a little over 8 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. Notably, the grey market estimate has improved from the 4 percent quoted by the site earlier yesterday.

According to IPO Watch, the unlisted shares of the company were still trading with 4 percent GMO over the IPO price.

Key details about BMW Ventures IPO:

The steel products distributor moved to the capital markets to raise Rs 231.66 crore entirely through a fresh issue of 2.34 crore shares at a price band of Rs 94-99 per share. The IPO will remain open for public bidding between September 24 and September 26.

Investors can bid for a minimum of 151 shares, requiring an investment of Rs 14,949, and in multiples thereafter. The allotments are likely to be finalized by September 29, and the shares are scheduled to be listed on stock exchanges on October 1.

BMW Ventures, that also involves in trading of tractor engines and spare parts and manufacturing of PVC pipes and fabrication of pre-engineered buildings and steel girders, aims to use Rs 173.75 crore of the fresh IPO proceeds for its working capital requirements, and the remainder funds for general corporate purposes.

The Bihar-based firm has reserved up to 50 percent of the offer size for QIBs, 35 percent for retail investors, and 15 percent for NIIs.

Should you subscribe?

"Near-term listing gains may be moderate, supported by sector sentiment and no OFS overhang. For the long term, investors should track how effectively BMW reduces leverage, manages working capital, and expands its manufacturing mix. Sustained EBITDA margins above 3.5–4% and debt-equity closer to 1.5x will be key for value creation," said Harshal Dasani, Business Head at INVAsset PMS.

"While demand outlook remains robust, the company plans to increase the distribution network and reaching other districts of Bihar and plans to expand its operations for achieving economies of scale. Investors with a long-term outlook may consider participating in the IPO," said Master Capital Services.

About the company:

The company that is valued at Rs 858 crore at the upper price band has registered profit at Rs 32.8 crore for the fiscal year 2025, growing 9.6 percent compared to Rs 29.9 crore in previous year. Revenue during the same period increased by 6.4 percent to Rs 2,062 crore, up from Rs 1,938.2 crore.

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