BMW Ventures refiles IPO draft with SEBI

BMW Ventures IPO will consist of a completely new issue of 2.34 crore equity shares with no offer-for-sale part.

Patna-based steel products distributor BMW Ventures has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a revised initial public offering (IPO), aiming to raise capital primarily for debt reduction.

Key IPO Details:

• Fresh Issue Only: The IPO will consist entirely of a fresh issue of 2.34 crore equity shares, with no offer-for-sale component.
• Issue Size Trimmed: The total issue has been marginally reduced by 18,000 shares from its earlier proposal.
• Purpose of Funds:
  • ₹173.75 crore will be allocated toward repayment of borrowings.
  • The remainder will go toward general corporate purposes.

Previous Filing Withdrawn

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BMW Ventures had initially filed IPO documents on September 4, 2024, planning to raise funds via 2,34,18,000 equity shares. However, it withdrew the draft on October 28, 2024, and has now made notable adjustments, especially in the use of proceeds.

Change in IPO Objectives:

• Earlier Plan: ₹175 crore was earmarked for working capital requirements for FY25 and FY26.
• Current Plan: Focus has shifted to debt repayment, likely reflecting an urgent need to deleverage.

Financial Position:

As of December 2024, BMW Ventures held total borrowings of ₹440.72 crore on a consolidated basis, making debt reduction a strategic priority.

About BMW Ventures:

• Core Business: Distribution of long and flat steel products across Bihar.
• Diversified Portfolio:
  • Trading of tractor engines and spare parts
  • Manufacturing of PVC pipes
  • Roll forming
  • Fabrication of pre-engineered buildings (PEB) and steel girders

The IPO refiling reflects the company’s reoriented financial strategy and its intent to improve balance sheet strength ahead of further expansion.