BMW Ventures IPO – Overview
Company Background:
BMW Ventures Ltd is a Patna-based steel distribution company established in 1996. It is primarily engaged in the distribution of long and flat steel products, catering to infrastructure, construction, and industrial clients. Over 97% of its revenue comes from steel product distribution.
IPO Details:
BMW Ventures has re-filed its Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The IPO will consist of a fresh issue of approximately 2.34 crore equity shares, each with a face value of Rs. 10. Notably, there is no offer-for-sale (OFS) component, meaning all proceeds from the issue will go directly to the company.
Use of Proceeds:
The company aims to raise capital primarily to repay borrowings amounting to Rs. 174 crore, indicating a shift in strategy from its earlier DRHP, where funds were earmarked mainly for working capital. The rest of the proceeds will be used for general corporate purposes.
Financial Highlights:
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Revenue (FY23): Over Rs. 2,000 crore
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Steel business contribution: More than 97% of total revenue
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Shows strong top-line performance, driven by demand in the infrastructure and industrial sectors.
IPO Management and Listing:
Strategic Move:
This is BMW Ventures’ second attempt at launching an IPO, after it withdrew its previous DRHP in late 2024. The revised plan focuses on improving the company’s balance sheet and preparing for future growth by reducing debt.