Belrise Industries Limited launches its Initial Public Offering (IPO) to raise funds. The IPO comprises a fresh issue of 23.89 crore equity shares. The total offer size aggregates up to Rs. 2,150 crore. The IPO opens for bids on May 21 and will end on May 23, 2025. The shares will be listed on NSE BSE after the IPO closes. Here’s everything you need to know.
GMP of Belrise Industries IPO
The shares of Belrise Industries Limited’s price in the grey market were trading at a 20 percent premium as of May 22nd, 2025. The shares in the Grey Market traded at Rs 108. This gives it a premium of Rs. 18 per share over the cap price of Rs. 90
Overview of Belrise Industries
Belrise Industries Limited was founded in 1988 and is an Indian company that makes automotive parts for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles. It produces a wide range of safety-critical systems and engineering solutions such as metal chassis systems, polymer components, suspension systems, mirror systems, body-in-white components, and exhaust systems.
The company supplies its products to major vehicle manufacturers like Bajaj, Honda, Hero, Jaguar Land Rover, Royal Enfield, Tata Motors, Mahindra, and VE Commercial Vehicles. As of June 30, 2024, Belrise works with 27 OEMs globally and operates 15 manufacturing plants across nine cities in eight Indian states.
Promoters of Belrise Industries: The company’s promoters are Shrikant Shankar Badve, Supriya Shrikant Badve, and Sumedh Shrikant Badve. They bring decades of industry experience and leadership.
Belrise Industries Selling Shareholders: The IPO includes only a fresh issue. There is no offer-for-sale (OFS) component. Promoters and existing shareholders are not offloading their stake.
Lead Managers of Belrise Industries IPO: Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets are book-running lead managers. MUFG Intime India is the IPO registrar.
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Objectives of the IPO Offer
Belrise Industries Limited will use the funds for repayment of an outstanding borrowing of Rs. 1,618.13 crore, against its existing borrowing of Rs. 2,599.80 crores. A portion will also support working capital and general corporate purposes. These investments aim to expand and modernize operations.
Belrise Industries vs Peers
Belrise Industries competes with JBM Auto, Minda Corporation, Uno Minda, Motherson Sumi Wiring India, Endurance Technologies, and Bharat Forge. Among peers, it offers vertical integration and product diversity.
Financial Analysis of Belrise Industries
Belrise Industries Limited’s revenue has increased from Rs. 6,620.78 crore in FY23 to Rs. 7,555.67 crore in FY24, which represents a growth of 14.12 percent. The net profit has decreased by 1.12 percent from Rs. 356.70 crore in FY23 to Rs. 352.70 crore in FY24.
Belrise Industries Limited’s revenue and net profit have grown at a CAGR of 18.17 percent and 7.14 percent, respectively, over the last two years. In the 9M FY25, the company earned revenue of Rs. 6,064.76 crore and a net profit of Rs. 245.47 crore.
Belrise Industries Strengths and Weaknesses
Strengths:
- Market leader in sheet metal precision engineering.
- Vertically integrated manufacturing enhances operational efficiency.
- Long-term relationships with OEMs like Tata and Bajaj.
- Product line supports both EV and traditional vehicle markets.
- Promoters have deep domain knowledge and strong execution skills.
Weaknesses:
- High client concentration exposes revenue risk.
- Dependent on the cyclical auto industry.
- Limited presence outside India.
- Exposure to raw material cost fluctuations.
- IPO involves a large fresh issue, diluting existing equity.
Conclusion
Belrise Industries offers investors a stake in a fast-growing automotive component manufacturer. With its diversified products and EV-readiness, it holds long-term growth potential. Investors should assess sector risks and financial trends before investing.
Written By – Nikhil Naik
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