Belrise Industries Limited is a leading Tier-1 Automotive OEM manufacturing group in India with an annual turnover of approximately ₹7484.2 crore. The company specializes in manufacturing automotive systems for a wide range of vehicles including two-wheelers, three-wheelers, and four-wheelers, serving both passenger and commercial vehicle segments.

Their product portfolio is diversified across multiple verticals such as:

• Metal Processing

• Polymer Processing

• Surface Treatment

• Mirror Systems

• Suspension Systems

• Foundry

• Home Appliances

• Security Hardware

• E-mobility

• Floriculture

This diversification ensures a strong presence across different automotive and industrial components sectors.

IPO Details

The Belrise Industries IPO is a fresh issue of 2,388.88 lakh equity shares amounting to ₹2,150 crore. The IPO opens for subscription on May 21, 2025, and closes on May 23, 2025.

The IPO price band is set at ₹85 to ₹90 per equity share. The lot size is 166 shares, which means retail investors need to invest a minimum of ₹14,940 to apply, while High Net Worth Individuals (HNIs) must apply for at least 14 lots (2,324 shares) totaling ₹2,09,160 at the upper price band.

The issue is managed by multiple Book Running Lead Managers including Axis Capital Limited, HSBC Securities and Capital Markets, Jefferies India Private Limited, and SBI Capital Markets Limited. The registrar for the issue is MUFG Intime India Private Limited.

The tentative allotment date is set for May 26, 2025, and the shares are expected to be listed on NSE and BSE around May 28, 2025.

Leadership

The company is led by Mr Shrikant Shankar Badve, the Managing Director, who brings over 28 years of experience in the automotive industry. Under his leadership, Belrise Industries has expanded its footprint and enhanced product innovation. Mr Badve has received multiple awards, including honors from the former Prime Minister of India, recognizing his contribution to the sector.

Financial Performance

Belrise Industries has delivered steady growth in revenue and profitability over the past three years, supported by robust demand and operational efficiencies.

Revenue from Operations (in ₹ million):

• FY2022: 54,106.80

• FY2023: 66,207.83

• FY2024: 75,556.73

• 9 months ended Dec 31, 2024: 60,647.63

EBITDA (in ₹ million):

• FY2022: 7,685.76

• FY2023: 9,137.80

• FY2024: 9,836.34

• 9 months ended Dec 31, 2024: 7,967.48

Profit After Tax (in ₹ million):

• FY2022: 2,618.47

• FY2023: 3,136.63

• FY2024: 3,108.79

• 9 months ended Dec 31, 2024: 2,454.67

This steady growth reflects the company’s strong market position and ability to manage costs efficiently.

Valuation Metrics

At the upper price band of ₹90, the IPO valuation stands as follows:

• Pre-issue EPS (FY24): ₹4.82

• Post-issue EPS (FY24): ₹3.33

• Annualised EPS (latest 9 months): ₹5.36

• Pre-issue P/E ratio: 18.67x

• Post-issue P/E ratio: 27.06x

• Industry P/E ratio: 50x

• ROCE (FY24): 14.83%

• ROE (FY24): 14.18%

• Return on Net Worth (FY24): 13.33%

These figures indicate that the IPO is fairly priced and undervalued compared to the industry average, offering potential for upside.

Grey Market Premium (GMP)

The Grey Market Premium for Belrise Industries IPO is currently around ₹9, which translates to an estimated listing gain of approximately 11.11 percent based on the upper price band. However, GMP reflects unofficial market demand and supply dynamics and is not a guaranteed indicator of actual listing price.

Investors should rely primarily on fundamental analysis and risk appetite before applying.

Market Capitalisation

The company’s post-issue market capitalisation at the upper price band will be approximately ₹8,008.91 crore. This valuation is competitive within the automotive component manufacturing sector, reflecting Belrise Industries’ strong revenue base and growth prospects.

Investment Recommendation

Belrise Industries offers a diversified product portfolio, a proven management team, and consistent financial growth. The IPO price band and valuation metrics suggest reasonable pricing with room for listing gains.

Investors with a moderate to high risk appetite can consider applying for the IPO to benefit from potential listing gains. Conservative investors should monitor post-listing price movements before making investment decisions.

The Upcoming IPOs in this week and coming weeks are Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Unified Data - Tech Solutions, Wagons Learning.

The Current active IPO are Dar Credit and Capital, Belrise Industries, Borana Weaves.