Belrise Industries Limited IPO Grey Market Premium (GMP) – Live Updates

Post Date: 21 May, 2025

Belrise Industries Limited IPO: Belrise Industries, a prominent Indian automotive components manufacturer, has launched its Initial Public Offering (IPO) for subscription starting May 21, 2025. The ₹2,150 crore IPO is a completely fresh equity issue comprising 23.89 crore shares. It will remain open for bidding until May 23. The price band has been set between ₹85 to ₹90 per share, and investors are required to bid in lots of 166 shares, with a minimum investment of ₹14,940 at the upper price band.

Belrise Industries Limited IPO

Grey Market Premium (GMP) Insights

By 1:24 PM on the first day of bidding, the IPO was subscribed 0.38 times overall. The retail portion was booked 0.29 times, the Non-Institutional Investors (NII) segment was filled 0.59 times, and the Qualified Institutional Buyers (QIB) segment was booked 0.39 times.

About Company

Belrise Industries is a well-known supplier of safety-critical automotive parts. The company produces metal chassis systems, polymer components, suspension parts, and exhaust systems catering to two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.

• Established: 1996 (formerly known as Badve Engineering Ltd.)
• Sector: Automotive components
• Product Range: Metal chassis systems, polymer components, suspension systems, body-in-white components, exhaust systems
• Global Presence: Exports to Austria, Slovakia, UK, Japan, and Thailand
• Manufacturing Facilities: 15 across 8 Indian states
• Key Clients: Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover, Royal Enfield Motors

Strategic Developments

Acquisition: Completed acquisition of H-One India, enhancing capabilities in high-tensile steel components and expanding customer base, including Indian and Japanese OEMs

GMP IPO

Belrise Industries has demonstrated strong financial performance in FY24. The company plans to utilize the IPO proceeds to repay ₹1,618 crore of debt, which is expected to result in annual interest cost savings of ₹150 crore and a consequent PAT gain of ₹110 crore. Analysts project that Belrise is well poised to clock ₹500 crore of PAT in FY27E, making it a lucrative offering at 16x P/E on FY27E compared to 20x P/E commanded by domestic ancillary players.

Key IPO Dates

• IPO Opening Date: May 21, 2025
• IPO Closing Date: May 23, 2025
• Tentative Listing Date: May 28, 2025

Analyst Recommendations

Market analysts have expressed a positive outlook on Belrise Industries’ IPO, citing the company’s robust fundamentals and strong client base. The anticipated reduction in interest costs post-IPO is expected to enhance profitability

Market Sentiment

• Grey Market Premium (GMP): Approximately 16% on Day 1 of the issue
• Subscription Status: 14% overall subscription on Day 1; NII segment subscribed 25%

Utilization of IPO Proceeds

The funds raised through the IPO will be allocated towards:

• Debt Repayment: ₹1,618 crore (approximately 62.5% of total borrowings as of June 2024)
• General Corporate Purposes: Remaining funds

This strategic allocation aims to strengthen the company’s financial health and support its growth initiatives.

Financial Snapshot (FY24)

• Revenue: ₹7,484 crore (13.7% YoY growth)
• Profit After Tax: ₹310.88 crore
• EBITDA Margin: 12.35%
• Debt: ₹2,463 crore as of June 2024

Major IPO Details

• Issue Size: ₹2,150 crore
• Price Band: ₹85 to ₹90 per share
• Lot Size: 166 shares
• Minimum Investment: ₹14,940 at the upper price band
• Issue Dates: May 21 – May 23, 2025
• Listing Exchanges: NSE and BSE

Allocation Breakdown

• Retail Investors: 35%
• Non-Institutional Investors (NIIs): 15%
• Qualified Institutional Buyers (QIBs): 50% (60% reserved for anchor investors)

Belrise Industries’ IPO has garnered moderate interest on Day 1, with a 16% GMP indicating positive market sentiment. The company’s strong financials and strategic use of IPO proceeds to reduce debt position it well for future growth. Investors should consider these factors when deciding to subscribe.

For more detailed information and updates, you can refer to the official Belrise Industries IPO page.

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