Mumbai: Belrise Industries, a prominent automotive component manufacturer, is poised to launch its initial public offering (IPO) on Wednesday, May 21, 2025. Ahead of the subscription opening, the company's shares are trading at a Grey Market Premium (GMP) of approximately 14.44%, indicating robust investor interest and positive market sentiment.
The IPO comprises a fresh issue of equity shares totaling ₹2,150 crore, with no offer-for-sale component. Belrise intends to utilize ₹1,618 crore of the proceeds to repay or prepay outstanding borrowings, aiming to reduce its debt burden significantly. As of June 2024, the company's total borrowings stood at ₹2,463 crore. The remaining funds will be allocated for general corporate purposes.
Belrise Industries specializes in manufacturing safety-critical systems and engineering solutions for various vehicles, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles. The company's product portfolio encompasses metal chassis systems, polymer components, suspension systems, body-in-white components, and exhaust systems. With 15 manufacturing facilities across eight states in India, Belrise serves a diverse clientele, including prominent original equipment manufacturers (OEMs) such as Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover, and Royal Enfield Motors.
In the fiscal year 2024, Belrise reported a revenue of ₹7,484.24 crore, marking a 13.7% increase from the previous year. The company's profit after tax stood at ₹310.88 crore, reflecting a slight decrease from ₹313.66 crore in the preceding fiscal year. For the quarter ended June 30, 2024, Belrise posted a revenue of ₹1,780.97 crore and a profit after tax of ₹71.58 crore.
The IPO is being managed by Axis Capital Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., Jefferies India Pvt. Ltd., and SBI Capital Markets Ltd. The allocation of shares is structured as follows: 50% to Qualified Institutional Buyers (QIBs), with 60% of this reserved for anchor investors; 15% to Non-Institutional Investors (NIIs); and 35% to Retail Investors.
The positive GMP suggests strong investor confidence in Belrise Industries' IPO. However, potential investors should consider the company's financial health, market position, and the broader economic environment before making investment decisions. Consulting with financial advisors and reviewing detailed prospectus documents is recommended to make informed choices.