BMW Ventures IPO opens: Analysts divided, SBI says 'Avoid'; here's why

According to Master Capital, investors with a long-term outlook may consider participating in the IPO, while SBI Securities recommends investors avoid the issue

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BMW Ventures IPO: The initial public offering (IPO) of steel structure solutions provider BMW Ventures opens for public subscription today, September 24, 2025. At the upper end of the price band of ₹94 to ₹99, the company aims to raise ₹231.66 crore. The mainline offering comprises an entire fresh issue of 23.4 million equity shares.

BMW Ventures IPO subscription status

The public issue received a decent response from investors in the first few hours of subscription. As of 12:30 PM on September 24, the issue was booked 6 per cent, receiving bids for 1.36 million shares against 23.4 million equity shares on offer. Retail individual investors subscribed to 8 per cent of the issue. However, the issue did not receive any bids from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).

BMW Ventures IPO grey market premium (GMP)

The unlisted shares of BMW Ventures were trading at ₹101 in the grey market, up ₹2 or 2 per cent from the upper end price, according to sources tracking unofficial market activities.

BMW Ventures IPO Review

The increase in Indian steel demand is expected to accelerate at a CAGR of 8-10 per cent by fiscal 2030, rising to 216-240 MT. Domestic steel demand has logged a significant 7 per cent CAGR between fiscals 2018 and 2024. 

 

According to analyst at Master Capital Services, with an expanding product portfolio and favourable demand conditions, BMW Ventures could see improved growth and financial strength. While demand outlook remains robust, the company plans to increase the distribution network and reach other districts of Bihar and plans to expand its operations to achieve economies of scale. "Investors with a long-term outlook may consider participating in the IPO," the brokerage said.

 

On the other hand, SBI Securities recommends investors avoid the issue, citing expensive valuation and various risk factors. "At the upper price band of ₹99, the company is valued at post-issue capital P/E and EV/Ebitda multiple of 26.2x and 12.7x respectively," the brokerage said. 

 

SBI Securities, in its note, said the company's business and profitability are substantially dependent on the cost of steel, and thus disruption to the timely and adequate supply of steel, or volatility in the prices of steel, may adversely impact its business. Additionally, as of FY25, BMWV’s top supplier accounts for 96 per cent of the company’s total purchases. Thus, a decrease in demand for the products manufactured by the said supplier or non-renewal of the agreement may result in an adverse impact on operations.

Here are the key details of BMW Ventures IPO:

BMW Ventures IPO is available at a price band of ₹94 to ₹99 per share, with a lot size of 151 shares. Accordingly, investors can bid for a minimum of one lot or 151 shares of BMW Ventures and in multiples thereof.

 

The minimum amount required by a retail investor to bid for the IPO is ₹14,949 at the upper end price. A retail investor can bid for a maximum of 13 lots or 1,963 shares, amounting to ₹1,94,337.

 

The three-day subscription window to bid for the issue will conclude on Friday, September 26, 2025. Following the closure of the subscription window, the basis of allotment of shares is likely to take place on Monday, September 29, 2025. Shares of BMW Ventures are scheduled to make their D-street debut on Wednesday, October 1, by listing on the BSE and NSE.

 

Cameo Corporate Services is the registrar of the issue. Saarthi Capital Advisors is the sole book-running lead manager.

 

According to the red herring prospectus (RHP), the company plans to utilise the net fresh issue proceeds for funding working capital requirements of the company and general corporate purposes.