BMW Ventures, the distributor of long and flat steel products across Bihar, has approached capital markets to raise funds via initial public offering next week. The issue will open for subscription on September 24 and close on September 26.
The IPO comprises of entirely fresh issue of 2.34 crore equity shares, which means the entire issue proceeds will be received by the company.
The funds will be utilised mainly for debt reduction as it has total borrowings of Rs 428.38 crore on a consolidated basis till March 2025.
With the help of IPO proceeds, BMW Ventures will be making the repayment of outstanding borrowings amounting to Rs 173.75 crore, and will keep the remaining amount for its general corporate purposes.
The company earned its major business through distribution of steel products, which accounted for around 98 percent of total revenue in the fiscal 2025. And the remainder minor portion of revenue generated through distribution of tractor engines and spare parts, manufacturing of PVC pipes and roll forming, and the fabrication of pre-engineered buildings (PEB) and steel girders.
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In the financial year ended March 2025, the Bihar-based company has reported profit at Rs 32.8 crore, 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, but overall, there has been inconsistency in numbers.
Sarthi Capital Advisors is the sole merchant banker managing the BMW Ventures IPO.
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