BMW ventures files for IPO to raise Rs 175 crore for working capital and corporate purposes

Patna-based BMW Ventures has filed preliminary papers with SEBI to raise funds via its maiden public issue. The IPO consists solely of a fresh issue of 2,34,18,000 equity shares, constituting 27 percent of the post-issue paid-up equity share capital of the company. Sarthi Capital Advisors has been appointed as the merchant banker for the issue.

BMW Ventures is a prominent distributor of long and flat steel products in Bihar, dealing in TMT bars, GI sheets, HR sheets, wire rods, galvanized color-coated sheets, doors, GP sheets, pipes, hollow sections, screws, and PVC pipes.

Utilization of IPO proceeds

• Working capital: The company plans to use Rs 175 crore of the proceeds for working capital requirements.
• General corporate purposes: The remaining funds will be used for general corporate purposes. The allocation for the current financial year 2025 is Rs 140 crore, with Rs 35 crore earmarked for the next fiscal year 2026.

Financial performance

• FY23 net profit: Grew by 2.2 percent year-on-year to Rs 32.7 crore.
• Revenue: Increased by 29 percent to Rs 2,015 crore compared to FY22.
• EBITDA: Increased by 5.9 percent to Rs 64.9 crore, though the margin fell by 70 bps to 3.2 percent.
• FY24 (April to December): Net profit stood at Rs 23.9 crore on revenue of Rs 1,394.8 crore.