BMW Ventures IPO Subscription Builds Momentum on Day 2, Retail Bids Gain Traction

New Delhi, September 25, 2025: The initial offering of ₹231 crore by BMW Ventures Limited extended into its second day of bidding, reflecting stronger interest from retail investors, while participation from Qualified Institutional Buyers (QIBs) remained unchanged. With 48.16 lakh shares already bid for, and 2.34 crore shares on offer, the cumulative subscription on exchanges stood at 0.21 times.

BMW Ventures is involved in multiple verticals, including steel distribution, tractor engines and spares, PVC pipe manufacturing, roll forming, and pre-engineered building and steel girder manufacturing.

Institutional Demand Remains Strong

QIB subscription was strong, with the category being subscribed at 1.08 times, dominated primarily by foreign institutional investors. This is a testament to institutional faith in the company’s business strategy and fundamentals, lending strength to the issue despite general market uncertainty.

Retail Investors Gain Momentum

Retail subscriptions performed better on Day 2, with a bid ratio of 0.25 times, where 43.50 lakh shares were bid against 1.75 crore shares reserved for this category. A substantial number of retail participants applied at the cut-off price, where 28.29 lakh shares were bid, showing cautious optimism and a desire to get allotments at a fair valuation.

Non-Institutional Buyers Weak

The Non-Institutional Investor (NII) category remains behind, with an aggregate subscription of just 0.04 times. Under this, bids over ₹10 lakh (bNII) were 0.01 times, whereas small investors (sNII) exhibited a marginally better response at 0.09 times. Such a lackluster response suggests that high-net-worth individuals are still hesitant to commit fully, possibly holding out until the last day.

Company Objectives

IPO proceeds are to be utilized mainly for meeting working capital needs, with ₹1,737.50 million set aside for this purpose. The remaining amount will be allocated for general corporate purposes.

Outlook

With QIB demand firm and retail interest picking up, subscription momentum could accelerate on the final day, though sustained weakness in the NII category may weigh on overall coverage levels.

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