Belrise Industries Limited, a leading Tier-1 Automotive OEM Manufacturing Group in India, is launching its Initial Public Offering (IPO) from May 21 to May 23, 2025. The company has filed a fresh issue worth ₹2,150 crore, comprising approximately 2,388.88 lakh equity shares. This IPO is poised to attract investors given Belrise’s robust market position, diversified product portfolio, and steady financial growth.

Company Profile and Business Overview

Belrise Industries specializes in automotive systems catering to the two-wheeler, three-wheeler, and four-wheeler passenger and commercial vehicle segments. The company operates across diverse domains such as metal processing, polymer processing, surface treatment, mirror systems, suspension systems, foundry operations, home appliances, security hardware, e-mobility, and floriculture. This extensive portfolio reflects Belrise’s strong foothold in both traditional automotive components and emerging sectors like e-mobility.

With a reported turnover of ₹7,484.2 crore, Belrise Industries has established itself as a significant player in the OEM space. The leadership under Managing Director Shrikant Shankar Badve, who brings over 28 years of industry experience and multiple accolades, including recognition from the former Prime Minister of India, ensures strategic vision and execution capability.

IPO Details and Pricing

• Issue size: ₹2,150 crore (entirely fresh issue)

• Price band: ₹85 to ₹90 per share

• Market capitalization at upper band: ₹8,008.91 crore

• Lot size: 166 shares per lot

• Minimum retail investment: ₹14,940

• Minimum HNI investment: 14 lots (2,324 shares), approx. ₹2,09,160

• Listing exchanges: NSE & BSE

• Subscription dates: May 21 - May 23, 2025

• Allotment date: May 26, 2025

• Tentative listing date: May 28, 2025

The IPO is being managed by top-tier Book Running Lead Managers, including Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets, with MUFG Intime India Private Limited as the registrar.

Financial Performance Highlights

Belrise Industries has demonstrated consistent revenue and profitability growth:

• Revenue from operations: ₹6,064.76 crore (Q3 FY25), ₹7,555.67 crore (FY24), ₹6,620.78 crore (FY23), ₹5,410.68 crore (FY22)

• EBITDA: ₹796.75 crore (Q3 FY25), ₹983.63 crore (FY24), ₹913.78 crore (FY23), ₹768.58 crore (FY22)

• Profit After Tax (PAT): ₹245.47 crore (Q3 FY25), ₹310.88 crore (FY24), ₹313.66 crore (FY23), ₹261.85 crore (FY22)

The company posted a pre-issue EPS of ₹4.82 and expects a post-issue EPS of ₹3.33 for FY24. The pre-issue P/E ratio stands at 18.67x, while the post-issue P/E is 27.06x, which is reasonable compared to the industry P/E of 50x. Return metrics for FY24 are also strong with a ROCE of 14.83%, ROE of 14.18%, and RoNW of 13.33%, reflecting efficient capital utilization.

Anchor Investors and GMP

Belrise Industries successfully raised ₹644.99 crore from anchor investors at the upper price band of ₹90 per share. The anchor allocation totaled 7,16,66,665 equity shares, signaling strong institutional confidence.

The Grey Market Premium (GMP) stands at ₹9, indicating an expected listing price near ₹99 and suggesting potential listing gains of about 11.11%. However, investors should remember that GMP is unofficial and subject to change based on demand-supply dynamics in unregulated markets.

Subscription Status and Allotment Process

As of the final day of subscription on May 23, 2025, the IPO was subscribed 41.30 times, showing robust investor interest across retail, institutional, and HNI categories.

The allotment status will be available on May 26, 2025, on the registrar’s website. Investors can check their allotment by selecting Belrise Industries IPO, entering their application number, PAN, or DP Client ID.

Use of IPO Proceeds

Belrise intends to deploy the IPO proceeds primarily for:

1. Repayment or prepayment of certain outstanding borrowings (₹1,618.13 crore approx.)

2. General corporate purposes, which will support operational expansion and strategic initiatives.

IPO Review and Recommendation

Belrise Industries’ IPO presents a compelling opportunity to invest in a diversified and financially stable Tier-1 automotive supplier with strong growth prospects in India’s growing automobile sector. The company’s valuation appears fair relative to its financials and industry benchmarks.

Given the strong subscription levels, respectable financial ratios, and promising GMP indicating listing gains, the IPO is recommended for investors with a moderate-to-high risk appetite looking for exposure in the automotive OEM space.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.