Stockgram

Belrise Industries IPO: The initial public offering (IPO) of Belrise Industries Ltd is open for public subscription and has entered its second day of the bidding process on Thursday, May 22. Belrise Industries IPO opened on May 21 and will close on May 23.

The company is an automotive component manufacturing company and offers a diverse range of safety critical systems.

Belrise Industries plans to raise ₹2,150 crore from the public issue. Along with Belrise Industries IPO, the primary market is also seeing another public issue which is Borana Weaves IPO.

Belrise Industries IPO has seen decent demand on the first day of the bidding process, as the issue was booked 67% on May 21. Belrise Industries IPO entered its second day today.

Belrise Industries IPO has been subscribed 1.04 times so far, as the public issue received bids for 18.40 crore equity shares as against 17.70 crore shares on the offer, as per data available on the NSE till 10:42 AM.

The public issue has been subscribed 0.70 times in the retail category, 0.43 times in the Qualified Institutional Buyers (QIBs) category, and 2.64 times in the Non Institutional Investors (NII) category so far.

Belrise Industries IPO is commanding a decent demand in the unlisted market, with a positive grey market premium (GMP). According to stock market observers, Belrise Industries IPO GMP today is ₹17 per share.

This indicates that in the grey market, Belrise Industries shares are trading higher by ₹17 than their issue price. Considering the Belrise Industries IPO GMP today, the equity shares of the company are trading at ₹107 apiece, which is at a 18.89% premium to the IPO price of ₹90 per share.

Gaurav Garg, Lemonn Markets Desk believes that Belrise Industries IPO presents a compelling opportunity, backed by strong fundamentals and a leadership position in the automotive components space.

“The company’s strategic focus on EV components, combined with its extensive OEM partnerships and integrated manufacturing, positions it well for sustained growth. The substantial debt repayment through IPO proceeds is expected to enhance profitability and improve cash flows, offering valuation comfort at a forward P/E of 16x. While investor attention is warranted on related-party transactions and customer concentration, the long-term growth potential and diversification into future-ready segments make Belrise an attractive bet for medium- to long-term investors,” Garg said.

Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for 2W, 3W, 4W, commercial vehicles and agri-vehicles. The company is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of March 31, 2024, in terms of revenue. Driven by rising product sales and increasing international presence, BIL has demonstrated strong growth in revenue.

Analysts at Geojit Investments Ltd noted that the upper price band of ₹90, Belrise Industries IPO is available at a P/E ratio of 25.8x (FY24 EPS), which appears to be reasonably priced compared to its long term profitability and PAT margin expansion owing to improvement in financial metrics.

“Given its dominant market share, diversified product portfolio, strong presence in EV& IC engine segments, capacity expansions, optimize inventory management and favourable industry outlook, we recommend a ‘Subscribe’ rating for a long-term basis,” Geojit Investments said.

According to Choice Broking, at the higher price band, Belrise Industries is demanding a TTM P/E multiple of 29.5x and EV/Sales of 1.1x, which is at discount to the peer average.

“While the company has demonstrated growth in both revenue and net profit, its margins have come under pressure. To address this, Belrise Industries is focused on increasing its content per vehicle, which is expected to enhance profitability. Additionally, the planned debt repayment is likely to contribute further to margin improvement. The company’s recent acquisition is expected to enhance its product offerings and drive sales growth, contributing positively to its overall business performance,” said Choice Broking.

Thus, the brokerage firm recommends a ‘Subscribe’ rating for the Belrise Industries IPO.

Belrise Industries IPO opened for subscription on Wednesday, May 21, and will close on Friday, May 23. Belrise Industries IPO allotment is expected to be finalized on May 26, while the IPO listing date is likely on May 28. The equity shares of Belrise Industries will be listed on both the stock exchanges - BSE and NSE.

Belrise Industries IPO price band is set at ₹85 to ₹90 per share. At the upper-end of the price band, the company plans to raise ₹2,150 crore from the IPO which is entirely a fresh issue of 23.89 crore equity shares.

The IPO lot size is 166 shares and the minimum investment amount required by retail investors is ₹14,110.

Axis Capital, HSBC Securities & Capital Markets Pvt Ltd, Jefferies India, SBI Capital Markets are the book running lead managers of the Belrise Industries IPO, while Link Intime India Private Ltd is the IPO registrar.

Read all IPO news here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.