Belrise Industries' IPO opened today, May 21, 2025, offering investors a chance to subscribe to the issue until May 23, 2025. The company aims to raise ₹2,150 crore through a fresh issue of 23.89 crore shares. The IPO price band is set at ₹85 to ₹90 per share, with a minimum lot size of 166 shares, requiring a minimum investment of ₹14,940 at the upper band.
Grey Market Premium (GMP)
Ahead of the IPO opening, the Grey Market Premium (GMP) for Belrise Industries' shares has been fluctuating. On May 17th, it reached a high of ₹18, then fell to ₹8 on May 19th. As of today, May 21st, the GMP is reported to be around ₹4 to ₹15, indicating a premium of approximately 4.72% to 16.67% over the IPO price. These figures suggest that the shares are trading at ₹94.25 to ₹105 in the grey market. However, it's important to note that the GMP is not an official metric and can change rapidly, so it should not be the sole basis for investment decisions.
IPO Details and Objectives
The IPO is entirely a fresh issue, meaning that the company will receive all the proceeds. Belrise Industries plans to use the funds primarily to reduce its debt by ₹1,618 crore, which is expected to result in annual interest cost savings of ₹150 crore and a PAT gain of ₹110 crore. The remaining funds will be used for general corporate purposes.
Anchor Investors
Prior to the IPO opening, Belrise Industries raised ₹645 crore from anchor investors, allocating 7,16,66,665 equity shares at ₹90 apiece. Key anchor investors include SmallCap World Fund, Inc., Nippon Life India's small-cap fund, Blackrock's Emerging Frontiers Master Fund, and ICICI Prudential Multicap fund.
Company Overview
Belrise Industries is a leading Indian manufacturer of automotive components, supplying safety-critical parts to major OEMs globally. The company produces metal chassis systems, polymer components, suspension parts, and exhaust systems for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles. Its clientele includes Bajaj Auto, Honda, Hero MotoCorp, Royal Enfield, Jaguar Land Rover, Tata Motors, and Mahindra. As of June 2024, Belrise services 27 OEMs across the globe and operates 15 manufacturing plants across nine cities in India.
Financial Performance
In FY24, Belrise Industries reported revenue of ₹7,555 crore and a profit after tax of ₹352.7 crore. The company has demonstrated consistent revenue growth, increasing from ₹5,396.85 crore in FY22 to ₹7,484.24 crore in FY24. For the 9 months ended December 31, 2024, the company earned a net profit of ₹245.47 crore on a total income of ₹6064.76 crore.
Subscription Recommendation
Analysts have provided mixed recommendations on whether to subscribe to the Belrise Industries IPO. Some analysts recommend subscribing for the long term, citing the company's focus on increasing content per vehicle, expanding into EVs, four-wheelers, and commercial vehicles, and its reasonable valuation. ICICI Direct noted that the debt repayment from the IPO proceeds and organic growth prospects position Belrise to achieve a PAT of ₹500 crore in FY27E, making it a lucrative offering at 16x P/E on FY27E compared to the 20x PE commanded by domestic ancillary players. Anand Rathi believes the issue is fairly priced and recommends a "Subscribe – Long Term" rating. Choice Broking also recommends subscribing, noting that the company's valuation is at a discount to peer averages and that planned debt repayment is likely to contribute to margin improvement.
However, some analysts have remained neutral, and investors should consider their own risk tolerance and conduct thorough due diligence before making a decision.
IPO Timeline
** रजिस्ट्रार**
Link Intime India Private Ltd is the registrar for the IPO.
Listing
The shares of Belrise Industries are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
