Belrise Industries IPO booked over 11x so far; GMP rises as issue closes for bidding today

The initial public offering (IPO) of Belrise Industries has garnered substantial interest from investors. The company, aiming to raise Rs 2,150 crore, set its share price between Rs 85 and Rs 90, offering up to 23,88,88,888 equity shares entirely through fresh sales. Investors could apply for a minimum of 166 shares, with multiples thereof.

According to the data, the investors made bids for 2,02,21,23,190 equity shares, or 11.42 times, compared to the 17,70,58,824 equity shares offered for the subscription by 2.00 pm on Thursday, May 23, 2025. The three-day bidding for the issue, which had opened on May 21 shall close today. 

The allocation for retail investors was subscribed 3.22 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 29.16 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 15.85 times as of the same time.

Established in 1988 and headquartered in Waluj, Maharashtra, Belrise Industries, formerly known as Badve Engineering, is a reputable manufacturer of automotive components. It specialises in producing sheet metal and casting parts, polymer components, suspension systems, and mirror systems for two, three, and four-wheeled vehicles, serving both the passenger and commercial segments.

The company's shares have gained attention in the grey market, with the latest unofficial premium reported between Rs 23 and Rs 25 per share. This suggests a potential listing gain for investors of approximately 25-7 per cent. Such a rise in the grey market premium reflects investor confidence and optimism about the company's forthcoming market performance.

Analysts maintain a positive outlook on Belrise Industries, citing its robust market share, favourable valuations, ambitious expansion plans, experienced management, and strong fundamentals. However, they note that the company's reliance on the Indian market, with limited exports, remains a concern for some investors.

Belrise Industries is available at a P/E ratio of 25.8 times (FY24 EPS), which appears to be reasonably priced compared to its long term profitability and PAT margin expansion owing to improvement in financial metrics, said Geojit Financial Services, which has a 'subscribe' rating for the issue.

Belrise Industries has also secured Rs 645 crore from anchor investors by allocating 7,16,66,665 shares at Rs 90 each. For the nine months ending December 31, 2024, the company reported a net profit of Rs 245.47 crore and revenue of Rs 6,064.76 crore. Its market capitalisation stands at approximately Rs 8,010 crore.

The IPO allocates 50 per cent of its shares to qualified institutional buyers, 15 per cent to non-institutional investors, and 35 per cent to retail investors. The allotment is scheduled to be finalised on Monday, May 26.

Belrise Industries is asking for a PE of 17 times which we feel reasonably priced looking at its peer, said Mehta Equities. "Given the company strong industry positioning, growth visibility and alignment with India’s automotive transformation and green manufacturing shift. We recommend investors to 'subscribe' for the IPO for long-term perspective only," it added.

Leading the IPO are Axis Capital, HSBC Securities & Capital Markets, Jefferies India, and SBI Capital Markets, with Link Intime India serving as the registrar. Shares of Belrise Industries are expected to list on both BSE and NSE, with the anticipated listing date on Wednesday, May 28.

Last heard, the company was commanding a premium of Rs 23-25 per share in the unofficial market, suggesting a 25-7 per cent listing gains for the investors. This mirrors the strong market sentiment surrounding Belrise Industries' entry into the public domain.