Belrise Industries Ltd., a Pune-based automotive component manufacturer, is launching its Initial Public Offering (IPO) on May 21, 2025. The company aims to raise ₹2,150 crore through a fresh issue of 23.89 crore equity shares, with no offer-for-sale component. The IPO will close on May 23, 2025.

Price Band and Lot Size

The price band for the IPO is set between ₹85 and ₹90 per share. Investors can bid for a minimum of 166 equity shares and in multiples thereof. At the upper end of the price band, the minimum investment amount for retail investors would be ₹14,940.

Grey Market Premium (GMP)

Ahead of the IPO opening, Belrise Industries' shares are commanding a grey market premium (GMP) of ₹13–14, indicating strong investor interest. 

Use of Proceeds

The primary objective of the IPO is to reduce the company's debt burden. Belrise Industries plans to utilize ₹1,618.1 crore from the net proceeds to repay or prepay certain borrowings. The remaining funds will be used for general corporate purposes.

Company Profile

Belrise Industries is a leading manufacturer of automotive components, offering a diverse range of safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles. The company's clientele includes major automotive players such as Bajaj, Honda, Hero, Jaguar Land Rover, Royal Enfield, VE Commercial Vehicles, Tata Motors, and Mahindra.

Financial Performance

For the nine months ended December 2024, Belrise Industries reported a profit of ₹245.5 crore, a decline of 17.5% compared to the same period the previous year. Revenue during the same period rose marginally by 0.9% to ₹6,013.4 crore.

IPO Allocation

The IPO allocation is structured as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.

Key Dates

• IPO Opening Date: May 21, 2025

• IPO Closing Date: May 23, 2025

• Allotment Date: May 26, 2025

• Listing Date: May 28, 2025

Lead Managers and Registrar

The book-running lead managers for the IPO are Axis Capital, HSBC Securities & Capital Markets, Jefferies India, and SBI Capital Markets. Link Intime India is the registrar for the issue.

Conclusion

Belrise Industries' IPO presents an opportunity for investors to participate in the growth of a prominent automotive component manufacturer. With a strong client base and plans to reduce debt, the company aims to strengthen its financial position and expand its operations. Investors should consider the company's financial performance, industry position, and the IPO's valuation before making investment decisions.