Belrise Industries Limited (formerly Badve Engineering Ltd) is all set to launch its Initial Public Offering (IPO), aiming to raise ₹ 2,150 crore through a 100% fresh issue. The IPO will open for subscription from May 21 to May 23, 2025, and is expected to list on BSE and NSE on May 28, 2025. Let us do a detailed review and analysis.
About Belrise Industries Ltd
Belrise Industries is one of India’s leading automotive component manufacturers. Established in 1988, the company offers sheet metal parts, polymer components, suspension systems, and other safety-critical systems for two, three, and four-wheelers, including commercial and agri-vehicles. Its clientele includes top names like Bajaj Auto, Tata Motors, Mahindra, Royal Enfield, and Jaguar Land Rover. As of June 2024, it has 15 manufacturing facilities across 9 cities.
Competitive Strengths
- Diverse Product Portfolio: Belrise caters to ICE and EV markets alike, offering metal chassis systems, body-in-white parts, and mirror and exhaust systems.
- Long-standing OEM Relationships: Partnerships with over 27 OEMs globally give it a strong and stable business base.
- Integrated Manufacturing: Vertical integration across 15 facilities enhances quality and cost control.
- Experienced Promoters and Management: Decades of industry experience bolster trust and operational expertise.
Belrise Industries IPO Details
- IPO Dates: May 21 to May 23, 2025
- Listing Date (Tentative): May 28, 2025
- Price Band: ₹ 85 to ₹ 90 per share
- Lot Size: 166 shares
- Retail Investment (Min): ₹ 14,110 (suggested: ₹ 14,940 at cut-off)
- Total Issue Size: 23.88 crore shares (₹ 2,150 crore)
- Fresh Issue Only: No OFS component
Financial Performance
| Period | Revenue (Cr) | PAT (Cr) | Assets (Cr) | Net Worth (Cr) |
|---|---|---|---|---|
| FY22 | 5,411 | 307 | 5,196 | 1,734 |
| FY23 | 6,621 | 357 | 5,679 | 2,038 |
| FY24 | 7,556 | 353 | 6,042 | 2,332 |
| 9M FY25 | 6,065 | 245 | 6,588 | 2,578 |
Belrise has shown consistent growth in revenue and profitability, with a PAT margin of ~4.36% and ROCE at 14.83% (FY24).
Objects of the Issue
- Repayment/prepayment of borrowings: ₹ 1,618 crore
- General corporate purposes
Valuation & P/E Comparison
- Post IPO EPS (Annualized): ₹ 3.68
- P/E at upper band (₹ 90): 24.47x
- Peers: Endurance Tech (P/E ~37x), Minda Corp (~52x), Sona BLW (~70x)
The IPO appears reasonably priced compared to listed peers.
Reasons to Invest in Belrise IPO
- Strong growth in auto components sector
- Well-diversified and EV-agnostic product base
- Solid relationships with blue-chip auto OEMs
- Reasonable P/E valuation
- Consistent revenue and PAT growth
Risk Factors
- High dependence on auto sector which is cyclical
- ~₹ 2,600 Cr borrowings could impact profitability despite repayment plans
- Limited global footprint compared to larger peers
- Low promoter share post-issue might impact control
Grey Market Premium (GMP)
As per market sources, the GMP is hovering around ₹ 20-25 per share, indicating positive investor sentiment.
How to Apply for Belrise IPO?
- Through UPI-enabled apps (e.g., Zerodha, Groww, Paytm Money)
- ASBA via net banking with your registered demat account
- Choose the cut-off price to improve allotment chances
Belrise Industries IPO – Is this good or bad for investment?
Belrise Industries is a leading automotive component maker with strong fundamentals and wide OEM clientele. It is entering the capital market at a reasonable valuation, especially when compared to its listed peers. The IPO proceeds will primarily reduce its debt burden, improving financial ratios. While it operates in a cyclical sector, its diversified and EV-compatible product range offers long-term growth potential.
High Risk Investors with a medium to long-term view can consider investing in this IPO.
FAQs on Belrise Industries IPO
- What is the IPO opening and closing date for Belrise Industries?
The IPO opens on May 21 and closes on May 23, 2025. - What is the price band for Belrise IPO?
The price band is fixed at ₹ 85 to ₹ 90 per share. - Is there any Offer for Sale (OFS) in this IPO?
No, this is a 100% fresh issue. - What is the minimum investment required?
Retail investors need to invest a minimum of ₹ 14,110 (or ₹ 14,940 at cutoff). - Where will the shares be listed?
The shares will be listed on both NSE and BSE. - What is the GMP of Belrise Industries IPO?
The grey market premium is around ₹ 20-25 per share as of now. - Who are the lead managers for the IPO?
Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets.
Disclaimer: This article is purely for educational and informational purposes only and should not be construed as investment advice. Investing in IPOs, especially in emerging companies, involves high risk and may not be suitable for all investors. Please consult your financial advisor or investment consultant before making any investment decisions. The author and publisher are not liable for any financial loss arising from the use of this information.
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
Good/ relevant and timely information.
Thank you.
Thank you