BMW Ventures IPO subscribed 11% on Day 1, QIB portion fully booked: Should you apply?

BMW Ventures IPO Day 1

The initial public offering of BMW Ventures opened for public bidding today, September 24. The IPO has been subscribed 13 percent, with Qualified Institutional Buyers (QIB) already fully booking their reserved portion.

The maiden public issue of the company received bids for more than 25 lakh shares, as against the offer size of 2.34 crore shares, according to data on NSE. The portion kept for QIBs has been subscribed more than 100 percent, while those kept for retail investors and Non Institutional Investors (NII) have been booked 13 percent and 2 percent, respectively.

BMW Ventures IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a little over 2 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. Notably, the grey market estimate has improved slightly. Earlier this week, the unlisted shares were trading flat at the IPO price in the grey market.

Key details about BMW Ventures IPO:

The steel products distributor moved to the capital markets to raise Rs 231.66 crore through an entirely 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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