BMW Ventures
IPO Size: Rs. 232 cr, Entirely Fresh Issue
- To repay Rs. 174 cr of Rs. 400 cr net debt
Price band: Rs. 94-99 per share
M cap: Rs. 858 cr, implying 27% dilution
IPO Date: Wed 24th Sep to Fri 26th Sep 2025, Listing Wed 1st Oct 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Patna based Steel Products Trader
BMW Ventures distributes steel products (both long products like TMT bars, galvanized wires and flat products like GC, GP, HR, CR sheets and coils) and tractor engines and spare parts in Bihar. It also manufacturers PVC pipes and fabricates Pre-Engineered Buildings and steel girders, but that accounts for hardly Rs. 20 cr in topline.
No Growth
Company’s financial performance has been flat in the past 3 fiscal, with revenue stagnant, at nearly Rs. 2,000 cr and even PAT hovering around Rs. 33 cr since FY22. Being a commodity product distributor, company’s net margin is wafer slim at 1.6%, leading to an EPS of Rs. 5.2 for FY25.
Even post repayment of half the debt from IPO proceeds, net margin will be just about 2%.
Steep Pricing
On FY26E expected EPS of Rs. 5.5, PE multiple of 18x is seen very aggressive. Rs. 850 cr m cap for Rs. 33 cr PAT from distribution business which is working capital heavy is seen very steep, may be even double of what is fair.
25th Sep 2025 at 09:14 pm