Belrise Industries IPO Day 1: Check subscription status, GMP, allotment date & more

The initial public offering (IPO) of Belrise Industries attracted a decent response from the investors during the first day of the bidding process across all the major categories of the investors. The issue, which kicked off on Wednesday, May 21, shall close for bidding on Friday, May 23.

Belrise Industries is selling its shares in the price band of Rs 85-90 apiece. Investors can apply for a minimum of 166 shares and its multiples thereafter. It is looking to raise Rs 2,150 crore via IPO, which is entirely a fresh share sale of up to 23,88,88,888 equity shares.

According to the data, the investors made bids for 7,13,03,806 equity shares, or 40 per cent, compared to the 17,70,58,824 equity shares offered for the subscription by 1.45 pm on Wednesday, May 21, 2025. The bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 31 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 65 per cent. However, the quota set aside for qualified institutional bidders (QIBs) was booked 39 per cent  as of the same time.

Incorporated in 1988, Waluj, Maharashtra-based Belrise Industries, formerly known as Badve Engineering, manufactures automotive sheet metal and casting parts, polymer components, suspension, and mirror systems specifically for two-wheel, three-wheel, and four-wheel passenger and commercial vehicles.

The grey market premium (GMP) of Belrise Industries has remained stable amid the mixed bidding for the issue despite volatile market sentiments. Last heard, the company was commanding a premium of Rs 14 per share in the unofficial market, suggesting a 16 per cent listing gains for the investors. The GMP stood around Rs 17, a day ago.

Analysts mostly have a positive view on this issue. They are positive on the company's strong market share, attractive valuations, expansion plans, experienced management, sound fundamentals and demand for the products. However, the majority of the revenue from Indian markets and low exports are major concerns for the issue.

Belrise Industries presents a compelling IPO 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, said Gaurav Garg, Lemonn Markets Desk.

"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 16 times. 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," he said.

Belrise Industries raised Rs 645 crore from anchor investors as it allocated 7,16,66,665 shares at a price of Rs 90 per share. For the nine months ended on December 31, 2024, Belrise Industries reported a net profit of Rs 245.47 crore, with a revenue of Rs 6,064.76 crore. The company commands a total market capitalization of close to Rs 8,010 crore.

The company has reserved 50 per cent of the net offer for the qualified institutional bidders, while non-institutional investors shall get 15 per cent of the allocation. Retail investors will get a reserve of 35 per cent in the issue. Allotment for the issue is likely to be finalized on May 26, Monday.

Belrise Industries is valued at FY24 P/E multiple of 24.8x at post issue capital of upper price band. Its revenue, Ebitda and PAT, achieved a CAGR of 17.8 per cent, 10.7 per cent and 9 per cent to Rs 7,484 crore, Rs 925 per cent and Rs 323 crore during FY22-FY24 period, said SBI Securities.

"The industry forecast indicates a decent growth for the 2W/3W industry (Domestic and Export) and is projected to expand at a CAGR of 8 per cent/5 per cent-7 per cent during FY24-FY30E/FY25E-FY30E period respectively. Additionally, the company is likely to repay debt amounting to Rs 1,618 crore in FY26, thus lowering D/E below 1 times," it added without rating the issue.

Axis Capital, HSBC Securities & Capital Markets, Jefferies India and SBI Capital Markets are the book running lead managers of the Belrise Industries IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with Wednesday, May 28 as the tentative date of listing.