Belrise Industries, a top automobile component maker, will open its eagerly awaited Initial Public Offering (IPO) on May 21, 2025. The firm, renowned for manufacturing safety-critical components that go into top automobile manufacturers, hopes to mobilize ₹2,150 crore from this mainboard issue. Below is a brief, up-to-the-minute newsletter-format update on the IPO highlights, such as GMP, review, and all key investor details.
IPO Snapshot
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Opening and Closing Dates: Subscription opens on May 21, 2025, and closes on May 23, 2025.
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Issue Size: ₹2,150 crore, consisting only of a new issue of 23.89 crore equity shares; no offer-for-sale component.
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Price Band: ₹85 to ₹90 per share.
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Lot Size and Investment: Minimum lot size is 166 shares. Retail investors must invest a minimum of ₹14,940 at the higher band.
Grey Market Premium (GMP)
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Current GMP: ₹4.25 to ₹7, indicating a possible listing price of approximately ₹94–₹97 per share, a premium of 8% over the higher price band.
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Allotment and Listing
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Allotment Date: To be finalized by May 26, 2025.
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Listing Date: Shares likely to be listed on BSE and NSE by May 28, 2025.
Company Overview
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Business: Produces car components—metal chassis, suspension, polymer components, mirrors, and exhaust systems—for two-wheelers, three-wheelers, and four-wheelers.
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Clients: Large automobile manufacturers such as Bajaj, Honda, Hero, Jaguar Land Rover, Royal Enfield, Tata Motors, and Mahindra.
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Scale: Has 15 manufacturing plants in 9 cities.
Use of IPO Proceeds
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Debt Repayment: Most of the funds (around ₹1,618 crore) for repayment/prepayment of outstanding borrowings.
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Expansion & Working Capital: The funds will also be used for manufacturing growth, working capital, and general corporate expenses.
Financial Performance
FY24 Revenue: ₹7,555.67 crore (an increase from ₹6,620.78 crore in FY23).
FY24 Net Profit: ₹310.88 crore (marginally lower than ₹313.66 crore in FY23).
Strengths
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Market Position: Top 3 two-wheeler component suppliers in India with a market share of 24%.
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Diversified Client Base: Association with more than 27 OEMs worldwide, including strong export operations in the US, Japan, UK, and China.
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Management: Experienced founders and professional management.
Risks and Weaknesses
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Regional Concentration: 7 out of 15 plants are in Maharashtra, exposing the company to regional risks.
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Capacity Utilization: Under-utilization or disruptions at plants could impact profitability.
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Customer Dependency: Heavy reliance on a few large OEM customers; changes in demand or contract terms could affect revenue.
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Raw Material Volatility: Fluctuations in raw material prices may impact margins.
Investor Categories and Reservation
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Retail Investors: At least 35% of the issue reserved.
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Qualified Institutional Buyers (QIBs): Maximum 50%.
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Non-Institutional Investors (NIIs): Minimum 15%.
Sources: Financial Express, IPO Watch, NDTV Profit, Finowings, Equitymaster, Angel One
