Belrise Industries IPO: GMP falls 25% after allotment; will it still deliver listing pop?

Shares of Belrise Industries are scheduled to make their Dalal Street debut on Wednesday, May 28 as the auto ancillary player is likely to deliver a premium listing for the issue, if one goes by the signals from the grey market, coupled with positive market sentiments and investor demand for the IPO.

The grey market premium (GMP) of Belrise Industries has seen a sharp correction ahead of its listing, but decent listing gains can be expected. Last heard, Belrise Industries was commanding a premium of Rs 20-21 per share in the unofficial market, a listing pop of 21-23 cent for the investors. The GMP stood around Rs 28, on the last day of the bidding.

The IPO of Belrise Industries sold its shares in the price band of Rs 85-90 per share between May 21 and May 23, for which investors could apply for a minimum of 166 equity shares. The company raised a total of Rs 2,150 crore from its primary offering, which was entirely a fresh share sale of 23,88,88,888 equity shares.

The issue was overall subscribed a solid 41.30 times, fetching nearly 25.35 lakh applications amounting to Rs 65,920 crore. The portion for qualified-institutional bidders (QIBs) was subscribed a whopping 108.35 times. The portion for non-institutional investors (NIIs) was booked 38.33 times, while the allocation for retail investors was booked only 4.22 times.

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.

Brokerage firms were mostly positive on the issue. SBI Capital Markets, HSBC Securities & Capital Markets, Axis Capital, Jefferies India were the book running lead managers of the Belrise Industries IPO, while MUFG Intime India (Link Intime) served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.