Files DRHP for Rs 2,150 crore IPO with SEBI
MUMBAI, Nov 21 (the CONNECT) – Automotive component manufacturing company Belrise Industries has filed its draft red herring prospectus (DRHP) with the markets regulator SEBI for its Rs 2,150 crore its initial public offering (IPO).
The IPO with the face value of ₹ 5 per equity share, is entirely a fresh issue of up to ₹ 2150.00 Crore with no offer for sale component.
Belrise makes a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles
The issue is being made through the book-building process, wherein not more than 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available for allocation to non-institutional bidders, and not less than 35% of the issue shall be available for allocation to retail individual bidders.
The company, in consultation with the lead managers, consider a pre-ipo placement of specified securities, up to ₹ 430 crore. The amount will be reduced from the general corporate purpose portion of the issue. If undertaken, will be at a price to be decided by the company in consultation with the BRLMs. The pre-ipo placement shall not exceed 20% of the size of the issue.
The company intends to utilize Rs 1618.08 crore for clearing its loans.
Belrise Industries Limited was incorporated in 1996, has since diversified its customer base to 27 OEMs, as of June 30, 2024.
Product portfolio of the company includes metal chassis systems, polymer components, suspension systems, body-in-white components and exhaust systems, among others. Its products are largely agnostic to vehicle powertrain types, reflecting our ability in catering to both electric vehicles and internal combustion engine vehicles, thus positioning us favorably to adapt to the growing electric vehicle market.
The company specializes in precision sheet metal pressing and fabrication (i.e., the process of joining sheet metal components to create unified structures for assembling vehicle subsystems and bodies), and it is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of the Financial Year ended March 31, 2024, in terms of revenue, according to a CRISIL report mentioned in the DRHP.
The Company’s automotive product portfolio comprises over 1,000 distinct products across chassis systems, exhaust systems, body-in-white parts, polymer components, battery containers, suspensions and steering columns, among others. As of June 30, 2024, it marketed its products both domestically and internationally, with operations extending to several key global markets including Austria, Slovakia, the United Kingdom, Japan and Thailand.
The Company has a long-standing relationship with customers, including prominent multinational OEMs such as Bajaj Auto Limited, Honda Motorcycle & Scooter India Private Limited, Hero MotoCorp Limited, Jaguar Land Rover Limited and Royal Enfield Motors Limited, among others.
As of June 30, 2024, the company service a total of 27 OEMs globally, for a range of critical automotive components. It has 15 manufacturing facilities across nine cities in eight states, as of June 30, 2024 and expanded its manufacturing capabilities through both backward and forward integration.
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, driven by the ramping up of production and sales at the manufacturing facilities in Maharashtra and Tamil Nadu, increase in the prices of raw materials and components. Profit after tax was Rs 310.88 crore for the Financial Year 2024 from ₹313.66 crore for the Financial Year 2023. It generates close to 25% of its revenue from international business as on June 30,2024.
For the three months ended June 30, 2024, revenue from operations stood at ₹1780.97 crore and profit after tax stood at ₹ 71.58 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 and Link Intime India Private Limited is the registrar to the issue.
