Belrise Industries Ltd., a prominent Tier-1 Automotive OEM Manufacturing Group in India, is launching its Initial Public Offering (IPO) from May 21 to May 23, 2025. With a significant presence in two-wheeler, three-wheeler, and four-wheeler automotive systems, the company operates across a wide array of sectors including metal processing, polymer processing, surface treatment, mirror systems, suspension systems, foundry, home appliances, security hardware, e-mobility, and floriculture.

The company is issuing a fresh equity offer amounting to ₹2,150 Crores, comprising 2,388.88 lakh equity shares. There is no Offer for Sale (OFS) component in this IPO, making it a pure capital-raising route to fund expansion and strategic initiatives.

The IPO price band has been fixed at ₹85 to ₹90 per equity share, and the market capitalization at the upper price band will be approximately ₹8,008.91 Crores. The lot size is 166 shares, making the minimum retail investment ₹14,940. High-Net-Worth Individuals (HNIs) are required to apply in multiples of 14 lots, which equals 2,324 shares or ₹2,09,160.

Axis Capital Limited, HSBC Securities and Capital Markets, Jefferies India Private Limited, and SBI Capital Markets Limited are acting as the Book Running Lead Managers (BRLMs) for the IPO. MUFG Intime India Private Limited has been appointed as the registrar.

Company Overview

Belrise Industries Ltd. reported a turnover of ₹7,484.2 Cr and has built a reputation as a leading manufacturer in the automotive systems space, providing end-to-end solutions. The company is headed by Shrikant Shankar Badve, who serves as the Managing Director and brings over 28 years of experience in the automotive sector. Under his leadership, Belrise has diversified and expanded across multiple verticals and earned accolades including recognition from a former Prime Minister of India.

Financial Performance

The financial growth trajectory of Belrise Industries reflects consistent expansion:

• Revenue from Operations:

  • FY2022: ₹5,410.68 Cr

  • FY2023: ₹6,620.78 Cr

  • FY2024: ₹7,555.67 Cr

  • 9M FY2024 (ending Dec 31, 2024): ₹6,064.76 Cr

• EBITDA:

  • FY2022: ₹768.57 Cr

  • FY2023: ₹913.78 Cr

  • FY2024: ₹983.63 Cr

  • 9M FY2024: ₹796.74 Cr

• Profit After Tax (PAT):

  • FY2022: ₹261.84 Cr

  • FY2023: ₹313.66 Cr

  • FY2024: ₹310.88 Cr

  • 9M FY2024: ₹245.47 Cr

These figures indicate robust operational efficiency, with sustained profitability and revenue growth over the past three years.

Valuation Metrics

The IPO is being launched at a pre-issue P/E of 18.67x and a post-issue P/E of 27.06x, compared to the industry average P/E of 50x, suggesting a moderately priced offer.

• Annualised EPS (FY24): ₹5.36

• Post-Issue EPS: ₹3.33

• ROCE (FY24): 14.83%

• ROE (FY24): 14.18%

• RoNW: 13.33%

These indicators support the company’s efficient capital utilization and return generation capabilities.

IPO Timeline

• IPO Opens: May 21, 2025

• IPO Closes: May 23, 2025

• Allotment Date: May 26, 2025 (Tentative)

• Listing Date: May 28, 2025 (Tentative)

• Exchange Listing: NSE and BSE

Grey Market Premium (GMP)

As of May 19, 2025, the expected GMP is around ₹9 per share, projecting a possible listing gain of 11.11% over the upper band issue price of ₹90. However, investors should note that GMP is unofficial, speculative, and should not be solely relied upon for investment decisions.

IPO Objectives

Being a pure Fresh Issue, all proceeds will be used by the company to strengthen operations, expand manufacturing, or reduce debt, depending on details provided in the Red Herring Prospectus (RHP). No proceeds go to promoters or selling shareholders.

Conclusion

Belrise Industries IPO offers a chance to invest in a well-established automotive component manufacturer with a solid financial foundation, diverse product lines, and a credible leadership team. The IPO is moderately priced compared to peers, and early GMP trends hint at a positive listing.

However, the automotive sector can be cyclical, and the IPO carries typical market and industry risks. Therefore, it is best suited for risky or aggressive investors looking for listing gains or mid-to-long-term growth exposure in India’s thriving auto manufacturing space.

Recommendation: Apply with Caution for Listing Gains
Risk Profile: Moderate to High
Investment Horizon: Short to Mid-Term

The Upcoming IPOs in this week and coming weeks are Blue Water Logistics, Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Current active IPO are Victory Electric Vehicles International, Borana Weaves.

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