The Initial Public Offering (IPO) of BMW Ventures Limited (BMWV) is set to open today and will remain available until September 26, with a price band ranging from ₹94 to ₹99 per share. The Bihar-based manufacturer of PVC pipes and fabrication products is looking to raise ₹231 crore by offering 2.34 crore shares. Investors are allowed to bid in lots of 151 shares.
BMWV is involved in the trading and distribution of steel products, tractor engines, and spare parts, as well as the manufacturing of PVC pipes and pre-engineered buildings (PEB) alongside steel girders. The company focuses on the distribution of long and flat steel products throughout Bihar. As of March 2025, BMWV’s dealer network comprised 1,299 dealers covering 29 of Bihar’s 38 districts.
In the IPO, 50 percent of the shares are reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors, and the remainder for Non-Institutional Investors (NIIs). The company plans to allocate ₹173.75 crore of the IPO funds for working capital needs, with the rest earmarked for general corporate purposes.
Sarthi Capital Advisors Pvt Ltd is acting as the book-running lead manager for the offering, while Cameo Corporate Services Ltd serves as the registrar.
According to SBI Securities, BMWV derives approximately 98 percent of its revenue from the distribution of steel products in Bihar. The company held a notable market share of approximately 19 percent in the TMT bars segment in Bihar during FY24. However, the company’s financial growth has been moderate, with revenue and profit after tax showing compound annual growth rates (CAGR) of 1.2 percent and 0.3 percent, respectively, between FY23 and FY25. While the debt-to-equity ratio stands at 2.0x as of FY25, it is projected to drop below 1.0x following the IPO, which could enhance profitability. Additionally, operating cash flows have shown improvement by FY25. At the upper price point of ₹99, BMWV is valued at a post-issue Price-to-Earnings (P/E) ratio of 26.2x and an EV/EBITDA multiple of 12.7x.
Given the high valuation and associated risk factors, SBI Securities recommends that investors consider avoiding the IPO.
Published on September 24, 2025.
