Patna-based BMW Ventures Files for IPO with SEBI

3 Jul 2024 , 10:59 AM

BMW Ventures, a distributor of long and flat steel products in Bihar, has filed preliminary papers with the capital markets regulator SEBI to raise funds through its maiden public issue. The IPO consists solely of a fresh issue of 2,34,18,000 equity shares by the company, representing 27% of the post-issue paid-up equity share capital.

The company plans to use the proceeds from the fresh issue primarily for working capital requirements, amounting to ₹175 Crore, and the remainder for general corporate purposes. BMW Ventures intends to allocate ₹140 Crore in the current financial year 2025 and the remaining ₹35 Crore in the next fiscal year, 2026.

BMW Ventures deals in a variety of steel products, including TMT bars, GI sheets, HR sheets, wire rods, galvanized color-coated sheets, doors, GP sheets, pipes, hollow sections, and screws. Additionally, the company manufactures PVC pipes, catering to a wide range of industrial needs in the region.

For the fiscal year 2023, BMW Ventures recorded a modest 2.2% year-on-year growth in net profit, amounting to ₹32.7 Crore. This growth was despite a strong revenue increase of 29%, reaching ₹2,015 Crore, compared to the previous fiscal year. The net profit was partly impacted by weak operating margins and higher finance costs.

On the operating front, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 5.9% to ₹64.9 Crore. However, the EBITDA margin declined by 70 basis points to 3.2% during the same period.

For the period from April to December of FY24, BMW Ventures reported a net profit of ₹23.9 Crore on a revenue of ₹1,394.8 Crore.

Sarthi Capital Advisors has been appointed as the merchant banker for the IPO, guiding BMW Ventures through the public issue process.