Issue subscribed 2.89 times on the second day of bidding, leading brokerage firms give thumbs up!
MUMBAI, May 22 (The CONNECT)- Despite the US Bond crisis pushing down the markets, the Initial Public Offering of automotive component major Belrise Industries was subscribed 2.89 times on the second day of bidding.
The issue received bids of 51,08,09,888 shares against the offered 17,70,58,824 equity shares, at a price band of ₹85-90, according to the data available on the stock exchanges.
Non-Institutional Investors Portion and Retail Portion were subscribed 8.96 times and 1.54 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.69 times. The issue kicked off for subscription on Wednesday, May 21, 2025, and will close on Friday, May 23, 2025.
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and SBI Capital Markets Limited are the book-running lead managers, and MUFG Intime India Private Limited is the registrar of the issue.
Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles.
The public issue of Belrise Industries is entirely fresh issue aggregating up to ₹2,150 crore with no offer-for-sale (OFS) component. The company has set a price band of ₹85–90 per share. Investors can bid for a minimum of 166 shares and in multiples thereof. The issue is open for subscription from Wednesday, May 21, 2025 till Friday, May 23, 2025. Shares of the company to debut on the BSE and NSE on Wednesday, May 28, 2025. Close to half of the shares are reserved for qualified institutional buyers, not less than 35 per cent and 15 per cent reserved for retail investors, and non-institutional investors, respectively.
Leading brokerage firms such as Anand Rathi, IDirect, Ventura Securities, GEPL Capital, SMIFS, Eureka Securities, Marwadi Financial Service, BP Wealth and Choice Broking have given a “Subscribe” rating to the issue, highlighting the company’s strong positioning as a leading automotive component manufacturer with a diverse portfolio catering to 2W, 3W, 4W, commercial and agri vehicles.
Belrise holds a 24% market share in the two-wheeler metal components segment as of FY24 and has demonstrated healthy double-digit growth, supported by premiumisation and rising content per vehicle. Brokerages note the company’s focus on expanding into EVs and four-wheelers, and commend its track record in engineering excellence and manufacturing capabilities. The recent acquisition and strong product pipeline are seen as enablers of future growth.
At the upper end of the price band, the IPO is valued at a TTM P/E of 29.5x and an EV/Sales of 1.1x—at a discount to peer averages. On FY27E basis, the stock trades at an attractive 16x P/E, compared to ~20x for listed auto ancillaries. Brokerages believe the planned ₹1,618 crore debt repayment will lead to interest savings of ~₹150 crore annually and boost PAT by ~₹110 crore, aiding profitability.
Belrise Industries’ revenue from operations increased by 13.70% to ₹7,484.24 crore for the Financial Year 2024 from ₹6,582.50 crore for the Financial Year 2023, primarily attributable to an increase in sales of products and an increase in the prices of raw materials and components. Profit after tax for fiscal 2024 stood at Rs 310.88 crore. For the nine months ended December 31, 2024, revenue from operations stood at Rs 6,013.43 crore, and profit after tax stood at Rs 245.47 crore.
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and SBI Capital Markets Limited are the book-running lead managers.
Belrise has acquired H-One India Private Limited, the erstwhile subsidiary of H-One Company Limited, a listed entity in Japan, in March 2025 and consequently, as of March 31, 2025, it operates 17 manufacturing facilities across 10 cities in nine states in India.
