Belrise Industries Limited IPO GMP: The Belrise Industries Limited IPO opened for subscription on Wednesday, May 21, 2025, and has received a moderate response from investors across all categories on Day 1. Priced in the range of ₹85-₹90 per share, the IPO is entirely a fresh issue of 23,88,88,888 equity shares, aiming to raise a total of ₹2,150 crore. The issue will close on Friday, May 23, 2025.
Belrise Industries Limited IPO GMP Today
The grey market premium (GMP) for Belrise Industries Limited IPO stood at ₹14 per share on Day 1 of the bidding process. This indicates a potential listing gain of around 16%, based on the upper price band of ₹90. While the Belrise Industries Limited IPO GMP was ₹17 a day prior, it has remained relatively steady despite market volatility, reflecting continued investor interest.
Subscription Status on Day 1
By 1:45 PM on May 21, the IPO was subscribed 40% overall, with the following breakdown:
- Retail investors: 31% subscribed
- Non-Institutional Investors (NIIs): 65% subscribed
- Qualified Institutional Buyers (QIBs): 39% subscribed
About Belrise Industries Limited
Formerly known as Badve Engineering, Belrise Industries Limited is based in Waluj, Maharashtra, and was established in 1988. The company manufactures automotive sheet metal and casting parts, polymer components, suspension, and mirror systems for two-wheelers, three-wheelers, and four-wheel/passenger and commercial vehicles.
The company is positioning itself for future growth with a strong focus on EV components and has built extensive partnerships with original equipment manufacturers (OEMs).
Financials and Valuation
For the nine months ending December 31, 2024, Belrise Industries reported:
- Net profit: ₹245.47 crore
- Revenue: ₹6,064.76 crore
- Market Cap (post-issue): Approx. ₹8,010 crore
The IPO values the company at a P/E ratio of 24.8x based on FY24 earnings. The company has achieved a revenue CAGR of 17.8%, EBITDA CAGR of 10.7%, and PAT CAGR of 9% from FY22 to FY24.
The company has also raised ₹645 crore from anchor investors ahead of the IPO by allotting 7,16,66,665 shares at ₹90 each.
Use of IPO Proceeds
A major portion of the IPO proceeds will be used for debt repayment. The company plans to reduce its debt by ₹1,618 crore in FY26, which is expected to improve cash flows and reduce the debt-to-equity ratio below 1.
Allotment and Listing Dates
- IPO Closes: May 23, 2025 (Friday)
- Allotment Date: May 26, 2025 (Monday)
- Listing Date (Tentative): May 28, 2025 (Wednesday)
- Listing Exchanges: BSE and NSE
Book Running Lead Managers & Registrar
- Lead Managers: Axis Capital, HSBC Securities, Jefferies India, SBI Capital Markets
- Registrar: Link Intime India
Analyst Outlook
Analysts are largely positive on the Belrise Industries Limited IPO, citing strong fundamentals, attractive valuation, strategic focus on EVs, and a leadership position in the auto components space. However, concerns include limited exports and dependency on the Indian market.
According to SBI Securities, the domestic and export markets for 2W/3W vehicles are expected to grow at a CAGR of 8% and 5%-7%, respectively, from FY24 to FY30, providing future growth opportunities.
Conclusion:
The steady Belrise Industries Limited IPO GMP, combined with solid fundamentals and a clear growth strategy, makes this IPO worth considering for medium- to long-term investors. Keep an eye on further subscription updates and allotment results in the coming days.