Patna-based BMW Ventures has filed preliminary papers with SEBI for its maiden public issue to raise funds. The IPO will consist solely of a fresh issue of 2,34,18,000 equity shares, which will constitute 27% of the post-issue paid-up equity share capital.
The company, a distributor of long and flat steel products in Bihar, plans to utilize the proceeds primarily for Rs 175 crore in working capital requirements. The remainder will be allocated for general corporate purposes, with Rs 140 crore expected in FY 2025 and Rs 35 crore in FY 2026.
BMW Ventures deals in various steel products such as TMT bars, GI sheets, HR sheets, wire rods, galvanized color-coated sheets, doors, GP sheets, pipes, hollow sections, and screws. It also manufactures PVC pipes.
In fiscal year 2023, BMW Ventures reported a modest 2.2% year-on-year growth in net profit at Rs 32.7 crore, despite a healthy top-line growth. This was partly affected by a weaker operating margin and higher finance costs. Revenue from operations grew by 29% to Rs 2,015 crore compared to FY 2022.
On the operational front, EBITDA increased by 5.9% to Rs 64.9 crore, but the margin declined by 70 bps to 3.2% during the same period.
Sarthi Capital Advisors has been appointed as the merchant banker to the issue.
