Belrise Industries Limited IPO: A Game-Changer in the Auto Component Industry
Belrise Industries Limited, a leading auto component manufacturer, is set to launch its Initial Public Offering (IPO) from May 21 to May 23, 2025. This IPO marks a significant milestone for the company, which has been a key player in India's automotive sector for decades. With a price band of ₹85 to ₹90 per share, the company aims to raise ₹2,150 crore through a 100% fresh issue of 23.89 crore equity shares.
Company Overview
Belrise Industries Limited, formerly known as Badve Engineering Ltd, has established itself as a trusted supplier of safety-critical automotive components. The company caters to two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles. Its diverse product portfolio includes metal chassis systems, suspension systems, polymer components, body-in-white parts, and exhaust systems.
With 15 manufacturing facilities across 9 cities, Belrise Industries has built strong relationships with major global and domestic OEMs such as Bajaj Auto, Tata Motors, Mahindra, Royal Enfield, Honda, Hero MotoCorp, and Jaguar Land Rover.
IPO Details and Investment Insights
The IPO subscription window will be open from May 21 to May 23, with allotment expected to be finalized by May 26. The shares will be listed on both NSE and BSE on May 28.
For retail investors, the minimum investment is one lot (166 shares), which amounts to ₹14,940 at the upper price band. Non-institutional investors (NIIs) have different requirements:
- Small NIIs must apply for 14 lots (2,324 shares), costing approximately ₹2.09 lakh.
- Big NIIs must apply for 67 lots (11,122 shares), totaling around ₹10 lakh.
Growth Prospects and Future Plans
Belrise Industries plans to utilize the IPO proceeds for expanding its manufacturing capacity, modernizing existing facilities, and meeting working capital needs. The company is also exploring strategic acquisitions within its core business areas to strengthen its market position.
Despite operating in a cyclical industry, Belrise Industries has demonstrated consistent revenue growth, with a profit after tax (PAT) of ₹310.88 crore in FY24. The company’s return on capital employed (ROCE) stands at 14.83%, reflecting strong financial health.
Risks and Considerations
While Belrise Industries has a diverse product portfolio and strong OEM relationships, investors should consider potential risks:
- Regional dependency: Seven out of its 15 manufacturing facilities are located in Maharashtra, which could pose operational challenges.
- Capacity utilization concerns: If the company fails to maintain optimal production levels, profitability may be affected.
- Customer reliance risk: Contracts with OEMs are requirement-based, meaning any decline in production demand could impact revenue.
