Shares of BMW Ventures are set to make their debut on the Indian stock market today, October 1, following the completion of its IPO bidding process. Ahead of the listing, investor attention has shifted to the stock’s potential performance. Grey market signals indicate that the debut may be muted, with little to no listing gains expected.
According to market sources, ₹0 per share as of today”>the grey market premium (GMP) for the BMW Ventures IPO stands at ₹0 per share as of today. This indicates that BMW Ventures IPO shares are likely to list at the same level as the issue price of ₹99 apiece or possibly at a discount.
The grey market premium represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to remember that GMP is a preliminary indicator and should not be the sole factor in making investment decisions.
BMW Ventures IPO details
The IPO, during its bidding period between September 24 and 26, received bids for 3.51 crore shares against an offer of 2.34 crore shares, resulting in a subscription of 1.50 times.
The retail portion was booked 0.99 times, while the non-institutional investors (NII) witnessed healthy demand, with their portion subscribed 3.03 times, and the qualified institutional buyers’ (QIBs) quota was bid 3.09 times.
The ₹231.66 crore IPO of BMW Ventures IPO comprises a fresh issue of 2.34 crore shares. The price band for the issue was set between ₹94 and 99 per share.
The company proposed to use the net proceeds from the issue towards funding working capital requirements and general corporate purposes.
About BMW Ventures
The company is engaged in the trading and distribution of steel products, tractor engines and spare parts, manufacturing of PVC pipes and roll forming, as well as the fabrication of pre-engineered buildings (PEB) and steel girders.
In its RHP, the company stated that it has established a strong dealer distributorship network for long and flat steel products, tractor engines, roll forming, and PVC pipes, while PEB and steel girders are primarily sold through institutional sales.
Although the company operates across multiple business segments, its steel distribution business forms a major part of its revenue. The steel distribution business accounted for the majority of revenue from operations, contributing 98.43%, 97.56%, and 98.10% in FY25, FY24, and FY23, respectively.
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