BMW Ventures IPO kicks-off: Should you subscribe to the issue or give it a skip

BMW Ventures IPO: The initial public offering (IPO) of BMW Ventures kicks-off for subscription on Wednesday, September 24, 2025, which shall conclude for subscription on Friday, September 26. The company shall be offering its shares in the range of Rs 94-99 apiece and investors can apply for a minimum 151 equity shares and its multiples thereafter.

Patna-based BMW Ventures is primarily engaged in trading/distribution of steel products, tractor engines and spare parts, manufacturing of PVC pipes and roll forming, and the fabrication of pre-engineered buildings (PEB) and steel girders. The company supplies steel products through 1,299 dealers as on March 31, 2025 dealers spanning 29 of the 38 districts in Bihar.

BMW Ventures is looking to raise a total of Rs 231.66 crore from its IPO, which is entirely a fresh share sale of 2,34,00,000 equity shares. The net proceeds from issue shall be utilized towards funding working capital requirements of the company and general corporate purposes. Brokerages have a mixed view on this IPO, with some suggesting subscribing to it, while others giving it a skip.

BMW Ventures' positive long-term growth trajectory is driven by strong market positioning, exclusive supplier relationships, and consistent revenue performance, said BP Equities. "The company is valued at a P/E multiple of 19.1 times FY25 earnings. We recommend a 'subscribe' rating for this issue," it said.

BMW derives 98 per cent of its revenues from distribution of steel products in the state of Bihar. It had a strong market leadership of 19 per cent in the TMT bars segment in Bihar during FY24. Looking at the financial growth track record, its revenue/PAT has shown a muted CAGR of 1.2 per cent/0.3 per cent between FY 23-25, said SBI Securities.

"D/E is 2 times as of FY25, however the same is expected to reduce to 1 times post issue resulting in improved profitability. Operating cash flows have also seen improvement in FY25. BMW Ventures is valued at post issue capital P/E and EV/Ebitda multiple of 26.2 times and 12.7 times, respectively," it added with an 'avoid' rating citing expensive valuation and risk factors.

BMW Ventures reported a net profit of Rs 32.82 crore with a revenue of Rs 2,067.33 crore for the financial year ended on March 31, 2025. It clocked a net profit of Rs 29.94 crore with a revenue of Rs 1,942.03 crore for the year 2023-24. At the current valuations, it commands a market capitalization close to Rs 860 crore.

The ongoing recovery in the construction and infra sectors, coupled with government-led initiatives like PM Gati Shakti Yojana, presents a strong growth trajectory for BMW Ventures, said Ventura Securities. "With a diversified portfolio and significant market share in Bihar, the company is well-positioned to capitalize on the increasing demand for steel products and infrastructure solutions in Eastern India" it said with a 'subscribe' tag.

BMW Ventures has reserved only one per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 24 per cent of allocation. Retail investors have 75 per cent reservation in the IPO. There was no grey market premium (GMP) for the counter ahead of the bidding.

Sarthi Capital Advisors is the book running lead manager of BMW Ventures and Cameo Corporate Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, October 1.