BMW Industries Share Price Surges 10% Following MoU Announcement

Market Performance

On March 25, 2025, BMW Industries' share price increased by 10% during intraday trading, reaching ₹49.51 per share, a two-week high for the company's stock. The price surge followed an announcement regarding a Memorandum of Understanding (MoU) signed with the Ministry of Steel under the Production Linked Incentive (PLI) Scheme 1.1 for speciality steel.

MoU with Ministry of Steel

BMW Industries disclosed the MoU in an exchange filing on March 24, 2025. Under this agreement, the company will manufacture 'Coated/Plated Steel Products of Metallic/Non-Metallic alloy' and 'Al-Zn Coated (Galvalume)' products. These operations will occur at the company's proposed Greenfield Downstream Steel Complex in Bokaro, Jharkhand.

Greenfield Project Details

BMW Industries plans to invest ₹800 crore to develop the Bokaro-based Greenfield Downstream Steel Complex. The project's funding will be sourced through a combination of internal accruals and debt. The planned facility is designed to have the following production capacities:

• Cold Rolled Full Hard Coil/Sheet: 300,000 TPA
• Galvanized Coil/Sheet: 540,000 TPA
• Colour Coated Coils/Sheets: 200,000 TPA

The company has confirmed possession of the required industrial-use land for the project, which will facilitate the establishment of the new production complex.

Stock Performance History

Over the past eight months, BMW Industries' share price has declined by 34%, following a rally between June 2023 and August 2024 that delivered an 186% gain. Despite the recent downturn, the stock remains up by 286% over the past five years.

BMW Industries is a key player in the downstream steel manufacturing sector. It specializes in the production of HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, and TMT rebars. The company also processes materials for major steel producers in India.

Summary

BMW Industries' share price increased 10% following the announcement of an MoU with the Ministry of Steel under the PLI Scheme. The company plan is to invest ₹800 crore in a Greenfield Downstream Steel Complex in Bokaro, Jharkhand, to expand its speciality steel production. Despite recent share price corrections, the company maintains a significant long-term growth trajectory in the steel manufacturing sector.