BMW Ventures
Incorporated in 1994, BMW Ventures is engaged in trading/distribution of steel products, tractor engines and spare parts, manufacturing of PVC pipes and roll forming, and the fabrication of pre-engineered buildings (PEB) and steel girders. The company specializes in the distribution of long and flat steel products across Bihar, India. The company supply steel products through 1,299 dealers as on March 31, 2025 dealers spanning 29 of the 38 districts in Bihar.
The company has also entered into the manufacturing and trading of PVC pipes under the brand name BMW Polytube. Since August 2018, the company has diversified its operations into the manufacturing and trading of PVC pipes (polyvinyl chloride pipes) through BMW Polytube, operating under the umbrella of BMW Ventures Limited. This venture has an installed capacity of 800 MT per annum. Roll forming unit has capacity of 3,000 MT p.a. which is located at Purnia stock yard while Steel girder installed capacity is 12000 MT.
The company long products include TMT Bars, wire - galvanized wires and structura - rectangular, square and circular steel hollow sections. Flat steel product portfolio comprises of GC Sheet - galvanized corrugated sheets, GP Sheet - galvanized sheets, HR Sheet - hot rolled sheets & coils, GC Sheet - colour coated, CR Sheet - cold rolled sheets & coil, others steel product includes Agrico - hoes, shovels, sickles, crowbars, pickaxes and hammers and door - residential & commercial doors and windows.
The company source its steel products, including TMT reinforced bars, galvanized corrugated sheets (GC Sheets), hot rolled sheets (HR sheets), cold rolled sheets (CR Sheets), Galvanized plain sheets (GP sheets), steel wires, steel hollow pipes, farm tools and equipment, as well as steel doors and windows, exclusively from the primary supplier, in the state of Bihar and these products are widely utilized in various industrial sectors such as construction, automotive, and general engineering. The company sources steel products from its primary supplier, considering factors like volume, steel type, quality etc. It apply a markup percentage on costs to cover steel cost, overheads, operational expenses, marketing expense and profit margins. Pricing varies based on market demand and competition.
The company steel distributorship segment constitutes the largest share of its revenue. For the fiscal 2025, steel distribution in Bihar accounted for 98.43% of its revenue from operations, while other business segments collectively contributed the remaining 1.57% to revenue from operations. In addition to distribution of steel products, it also has distributorship of tractor engines and its spare parts to various dealers. It has expanded into the fabrication business, which includes the fabrication of steel girders and Pre-Engineered Buildings (PEB) at its fabrication unit located at the Purnea stockyard in Bihar.
Tractor engine and spare part distribution has contributed 0.55%, 0.89% and 1.24% for the fiscal 2025, fiscal 2024 and fiscal 2023 respectively to its total revenue from operations. PVC business has contributed 0.03%, 0.08% and 0.17% for the fiscal 2024 and fiscal 2023 respectively to total revenue from operations. Fabrication of PEB has contributed 0.36%, 0.58% and 0.05% for the fiscal 2025, fiscal 2024 and fiscal 2023 respectively to total revenue from operations. Fabrication of Steel Girders business has contributed 0.26% in fiscal 2024.
The company operate six stockyards: one in Purnea (Bihar) and five in Patna (Bihar). These facilities are used for fabrication, storage, and distribution of steel products from its primary supplier. The stockyards help it maintain adequate inventory levels, ensuring timely and efficient delivery to meet demand across Bihar.
Nitin Kishorepuria, Rachna Kishorepuria, Bijay Kumar Kishorepuria, Sabita Devi Kishorepuria, BMW Fin-Invest Private Limited and Ridhisidhi Fincon Private Limited are promoters of the company.
The Offer and the Objects
The offer comprises of fresh issue of up to 23400000 equity shares aggregating Rs 232 crore at the upper price band of Rs 99 and aggregating Rs 220 crore at the lower price band of Rs 94.
The company proposes to utilize the net proceeds from the issue towards repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company amounting Rs 173.75 crore and the balance towards general corporate purposes.
As on March 31, 2025, the company had total borrowings of Rs 428.39 crore on a consolidated basis and accrued interest on borrowings.
Strengths
The company has maintained an exclusive distributorship of both long and flat products within the primary supplier since its inception, serving clientele of over 1,250 dealers and institutional buyers in Bihar.
The company engages in the marketing, sales, and distribution of an extensive product portfolio to a wide customer base located in Bihar, India and serve a wide range of industries including agriculture and real estate.
The company is an approved fabricator for steel girders by the Research Designs and Standards Organisation (RDSO), ensuring the delivery of high-quality and reliable products. Also the company has started the corrugation of GC Sheets and Color Sheets, received in coil form and processed accordingly, in January 2025. Additionally, the company offers cut-to length services for HR Sheets and GP Sheets as per customer requirements.
Over the years, it has established a strong dealer?s distributorship network in both long and flat steel products, tractor engine, roll forming and PVC. Further, PEB and steel girder are institutional sales.
The company has a strong market leadership position in the trading of TMT Bars and other allied steel products in the industry. It has contributed approximately around 19% of TMT bars market in the state of Bihar as of fiscal 2024. The remaining 81% ( around 0.87 MTPA) is occupied by distributors of other brands such as Kamdhenu, Balmukund, Captain, etc.
Steel demand in Bihar is expected to grow at a steady CAGR of 8.5-9.5% to 2.1-2.2 million tonne per annum over fiscals 2024-28, driven by increased focus on infrastructure development in the state in view of the Central government?s schemes, such as PM Gati Shakti for eastern regions and Pradhan Mantri Gram Sadak Yojana.
The company has expanded its operations into the fabrication of Pre-Engineered Steel Buildings and Steel Girders. As the company already distribute steel products, it can buy materials at better prices, work more efficiently, and stay more competitive in the market.
Weaknesses
In fiscal years 2025, 2024, and 2023, the company earned 98.49%, 98.29%, and 98.22% of its operating revenue from Bihar. All its manufacturing, fabrication facilities, and stockyards are also located in Bihar. Therefore, any adverse social, political, or natural events in this region could negatively affect its revenue and operations.
The company had reported negative net cash flow from operating activities in the past.
The company?s business and profits depend heavily on steel costs. So delays, shortages, or price changes in steel could harm its operations, cash flow, and finances.
The company promoter group entity, M/s. BMW Enterprises has conflicts of interest as it is engaged in similar business and may compete with it.
The company has a limited operating history in offering services under its Fabrication Division.
The company operate in a competitive and fragmented industry with low barriers to entry and may be unable to compete with a range of unorganized sector.
The company operate in a business environment characterized by relatively low profit margins and are therefore more susceptible to external pressures, including political, regulatory, and competitive risks, which could negatively impact its business, financial condition, and operational performance.
Even though they have good relationships with suppliers, they mostly distribute steel products of big suppliers (like Tata Steel), which reduces their ability to negotiate aggressively on prices and competition among distributors also reduces scope for differentiating or pushing higher spreads.
Steel trading/distribution requires carrying large inventories, and credit extension to dealers. Fluctuations in raw material (steel) prices and delays in receivables can strain liquidity.
Valuation
For FY2025, sales were up by 6% to Rs 2062.04 crore. OPM rose 50 bps to 4% which led to 19% increase in operating profit to Rs 82.1 crore. Other income rose 38% to Rs 5.3 crore and interest cost increased 35% to Rs 37.79 crore while depreciation increased 19% to Rs 4.99 crore. PBT increased 11% to Rs 44.61 crore. Tax expenses were 13% higher at Rs 11.79 crore. Net profit increased 10% to Rs 32.82 crore.
FY2025 EPS on post-issue equity works out to Rs 3.8. At the upper price band of Rs 99, P/E works out to be 26
Total outstanding borrowings amounted to Rs 428.39 crore as at March 31, 2025. As much as 41% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The EPS works out to Rs 5.6 if 41% of its interest cost is removed, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 18.
As of 17 September 2025, its listed peers Shiv Aum Steel trades at FY2025 P/E of 42. Shiv Aum Steel is listed on NSE SME and the scrip is not regularly traded. The scrip of the peer company was last traded on September 17, 2025
For FY2025, BMW Ventures Ebitda margin and ROE stood at 4.2% and 15.6% compared to 3.9% and 8.4% for Shiv Aum Steel.
| BMW Ventures:Issue Highlights | |
| Fresh issue (in number of shares) | 23400000 |
| For Fresh Issue Offer size (in Rs crore) |
|
| - in Upper price band | 232 |
| - in Lower price band | 220 |
| Offer for sale (in Rs crore) |
|
| Offer for sale (in number of shares ) |
|
| - in Upper price band | 0 |
| - in Lower price band | 0 |
| Price Band (Rs) | 94-99 |
| Pre issued capital (Rs crore) | 63.32 |
| Post issue capital (Rs crore) | 86.72 |
| Pre issue promoter shareholding (%) | 100.00 |
| Post issue Promoter shareholding | 73.02 |
| Bid Size (in No. of shares) | 151 |
| Issue open date | 24-09-2025 |
| Issue closed date | 26-09-2025 |
| Listing | BSE,NSE |
| Rating | 39/100 |
| BMW Ventures: Consolidated Financials | |||
| Particulars | 2303 (12) | 2403 (12) | 2503 (12) |
| Total Income | 2015.10 | 1938.20 | 2062.04 |
| OPM | 3.2 | 3.5 | 4.0 |
| Operating Profits | 64.82 | 68.72 | 82.10 |
| Other Income | 3.03 | 3.84 | 5.30 |
| PBIDT | 67.85 | 72.56 | 87.39 |
| Interest | 20.65 | 27.99 | 37.79 |
| PBDT | 47.19 | 44.56 | 49.61 |
| Depreciation | 3.96 | 4.20 | 4.99 |
| PBT | 43.24 | 40.37 | 44.61 |
| Share of Profit/loss of JV | 0.00 | 0.00 | 0.00 |
| PBT Before EO | 43.24 | 40.37 | 44.61 |
| EO | 0.00 | 0.00 | 0.00 |
| PBT after EO | 43.24 | 40.37 | 44.61 |
| Provision for Tax | 10.58 | 10.43 | 11.79 |
| Profit after Tax | 32.66 | 29.94 | 32.82 |
| PPA | 0.00 | 0.00 | 0.00 |
| Net profit after PPA | 32.66 | 29.94 | 32.82 |
| MI | 0.00 | 0.00 | 0.00 |
| Net profit after MI | 32.66 | 29.94 | 32.82 |
| EPS (Rs)* | 3.8 | 3.5 | 3.8 |
| *EPS annualized on post issue equity capital of Rs 86.72 crore of face value of Rs 10 .each | |||
| # Not annualised due to seasonality of business | |||
| Figures in Rs crore | |||
| Source: Capitaline Corporate Database | |||
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