Belrise Industries shares debuted on NSE and BSE at an impressive 11% premium over the IPO issue price of ₹90, listing around ₹99 per share on May 28, 2025. This premium listing reflects strong investor confidence after the IPO was oversubscribed by 41.3 times, signaling robust demand.

IPO Overview and Subscription

The IPO was a fresh issue of ₹2,150 crore, offering 238.89 million shares priced between ₹85 and ₹90. The offer attracted substantial institutional and retail interest, raising ₹645 crore from anchor investors alone. The high subscription level and 11% premium listing underscore the positive market reception.

Business Strength and Market Position

Belrise Industries is a Tier-1 Automotive OEM Manufacturing group with a turnover of ₹7,484 crore. It specializes in metal and polymer automotive components for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and even e-mobility segments. The company commands a 24% market share in the Indian two-wheeler metal components segment, ranking among the top three players.

Its diversified product portfolio includes over 1,000 components such as suspension systems, mirror systems, chassis parts, and polymer components. With 17 manufacturing plants across India, Belrise integrates backward and forward into key automotive value chains, serving marquee clients like Bajaj Auto, Hero MotoCorp, Honda, Royal Enfield, and Jaguar Land Rover.

The Indian automotive component industry is poised for steady growth. The two-wheeler market, which accounts for 73% of total vehicle sales in India, is expanding at around 6-8% CAGR, with EV penetration growing rapidly, especially in scooters and premium motorcycles. Similarly, the three-wheeler segment is witnessing strong growth with electrification momentum.

Industry Outlook

• Two-Wheelers: India is the world's largest two-wheeler market with 18.4 million units sold in FY24, growing steadily driven by affordability, fuel efficiency, and rural demand revival. EV two-wheelers are growing at a phenomenal 101.7% CAGR.

• Three-Wheelers: Rapid electrification with EV penetration hitting 16% in FY24 and above 20% in H1 FY25. E-rickshaws and cargo vehicles are key drivers.

• Growth Drivers: Rising income levels, financing availability, government incentives, and a shift towards EVs provide a robust growth runway for Belrise’s products.

Should You Buy, Hold or Sell Belrise Industries Shares?

• Buy: The company’s leadership in precision sheet metal components for two-wheelers, a high-growth industry segment, backed by a diversified product portfolio and strategic OEM partnerships, presents a strong investment case for medium to long term. The premium listing reflects positive market sentiment and growth potential.

• Hold: If you already hold shares, it is prudent to hold given the company’s solid fundamentals and growth outlook in a growing automotive components market, especially with increasing EV adoption.

• Sell: Investors seeking quick profits may consider booking partial gains given the 11% listing premium; however, the company's fundamentals suggest long-term value retention. Volatility in auto sector cycles and macroeconomic factors should be monitored.

Key Risks

• Automotive OEM dependency on cyclical demand and commodity price fluctuations.

• EV transition pace and regulatory changes impacting product mix.

• Competitive pressure from global and local component manufacturers.

Conclusion

Belrise Industries has delivered a strong IPO performance with a premium listing and robust subscription, reflecting confidence in its leading position in the Indian automotive component industry. With growing EV adoption and steady auto industry growth, Belrise appears well-positioned for future expansion. For investors, a buy or hold stance is recommended based on the company’s solid fundamentals and industry tailwinds, while cautious investors may monitor for market corrections before entering.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, 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.