Belrise Industries, an auto component maker, is gearing up to open its Initial Public Offering (IPO) on Wednesday, May 21. Known for supplying safety-critical parts to leading automotive brands, Belrise is eyeing a sizeable capital raise through this public issue.
If you are considering investing, here is a breakdown of five key things you need to know.
Belaris Industries IPO: Date, size and investment requirement
Belrise Industries will open its IPO for bidding on May 21, and the window will close on May 23. With this offering, the company is planning to raise around Rs 2,150 crore by issuing 23.89 crore fresh equity shares. There is no offer for sale component, which means all the money raised will go directly to the company for future plans.
The price band of this mainboard issue is set between Rs 85 and Rs 90 per share. For retail investors, the minimum investment is one lot (166 shares). Bidding at the upper end of the price band (Rs 90) will cost Rs 14,940.
For non-institutional investors – Small NIIs will need to apply for 14 lots (2,324 shares), costing approximately Rs 2.09 lakh. Big NIIs must apply for 67 lots (11,122 shares), totalling around Rs 10 lakh
The basis of allotment is likely to be finalised by May 26, and shares are expected to get listed on both the exchanges – NSE and BSE by May 28.
Belaris Industries IPO: What the Grey Market Premium (GMP) is saying
As of the latest, the GMP for Belrise shares stood at Rs 7, according to IPO tracking platforms like InvestorGain. This translates to an estimated listing price of Rs 97, up nearly 8% from the issues upper price band of Rs 90 per share.
While GMP is not an official metric, it often reflects investor sentiment ahead of listing.
Belaris Industries IPO: Where will your money go?
The proceeds from the IPO will primarily be used to expand the company’s manufacturing capacity. This includes setting up new units and modernising existing ones. A portion will also be allocated to working capital needs and general corporate purposes.
Belrise makes a wide array of automotive components, includingMetal chassis systems, Suspension systems, Polymer parts, Body-in-white parts, and Exhaust systems
These components used from two-wheelers to commercial trucks, and the company counts major global and domestic auto brands like Bajaj, Honda, Hero, Jaguar Land Rover, Royal Enfield, Tata Motors, and Mahindra among its customers.
Belaris Industries IPO: Risks you should not overlook
The Draft Red Herring Prospectus (DRHP) highlights some potential risks which include-
Regional dependency: “Seven out of our 15 manufacturing facilities are located in the state of Maharashtra.”
Capacity utilisation concerns: “If we are unable to maintain the existing levels of capacity utilization at our manufacturing facilities, our margins and profitability may be adversely affected.”
Customer reliance risk: “Our contractual arrangements with our OEM customers are generally requirement contracts, and any termination of such contracts or decline in the production requirements of any of our customers may adversely affect our business, results of operations, financial condition and cash flows.”
Belaris Industries IPO: Valuation, key players and who can invest
At the top end of the band, Belrise is valued at 18 × FY‑24 diluted EPS, sitting in the mid‑range for listed auto‑component peers. Half the issue is reserved for QIBs, up to 15 % for NIIs, and at least 35 % for retail buyers.
The IPO is being shepherded by Axis Capital, HSBC, Jefferies and SBI Capital Markets. Anchor investors can lock in on May 20.