The Belrise Industries IPO closed today, May 23, 2025, marking the end of a three-day subscription period. The IPO aimed to raise ₹2,150 crore through a fresh issue of 23.89 crore shares, with a price band of ₹85-90 per share. The IPO has garnered significant attention from investors, and here's a look at the subscription status, grey market premium (GMP), and whether you should have applied.
Subscription Status
By the end of the second day, the IPO was subscribed 2.89 times. The Non-Institutional Investors (NII) category was oversubscribed by 8.96 times, followed by retail investors at 1.54 times. Qualified Institutional Buyers (QIBs) subscribed to 0.69 times the shares offered to them. The strong interest from NIIs indicates a positive outlook from high-net-worth individuals.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) provides an unofficial indication of the listing price. Today, the GMP for Belrise Industries IPO was ₹23 per share. This suggests the shares were trading at around ₹113 apiece in the grey market, a 25.56% premium over the upper end of the IPO price. This premium signals strong demand and suggests a potentially positive listing. It is important to note that the GMP is an unauthenticated market-related news and has no discernible basis
Financial Performance and Objectives
Belrise Industries, an automotive component manufacturer, intends to utilize ₹1,618 crore from the IPO proceeds to repay borrowings. This debt repayment is projected to save approximately ₹150 crore in annual interest costs, potentially boosting the company's profit after tax (PAT) by ₹110 crore. The company is targeting a PAT of ₹500 crore by FY27E.
In FY24, Belrise Industries reported revenue of ₹7,555 crore and a profit of ₹353 crore. Between FY22 and FY24, the company recorded a healthy CAGR of 17.8% in revenue, 10.7% in EBITDA and 9.0% in PAT.
Brokerage Recommendations and Market Outlook
Several brokerage firms have given "Subscribe" ratings to the Belrise Industries IPO. Choice Broking highlighted the company's leadership in sheet metal pressing and fabrication, vertically integrated manufacturing, diverse product portfolio, and long-standing relationships with key customers. Anand Rathi gave a "Subscribe – Long Term" rating, noting the company's focus on increasing content per vehicle and expanding into EVs, four-wheelers, and commercial vehicles.
Lemonn Markets Desk believed that Belrise Industries IPO presented a compelling opportunity, backed by strong fundamentals and a leadership position in the automotive components space.
Key Dates to Watch
Factors to Consider
Final Thoughts
With the IPO now closed, investors who applied should monitor the allotment status on May 26, 2025. The strong subscription numbers, positive GMP, and favorable brokerage recommendations suggest a potentially positive listing on May 28, 2025.
