Belrise Industries manufactures safety-related equipment for vehicles ranging from two-wheelers to heavy commercial vehicles. The company exports its products not only within India but also to countries like England and Japan. Approximately 75% of the capital raised from the upcoming IPO will be used to repay existing debt, further strengthening its financial position.
New Delhi: Belrise Industries, an auto component manufacturer, is set to raise approximately ₹2150 crore from investors through its public issue. This IPO will open for subscription on May 21st and close on May 23rd. Bidding for anchor investors will be held on May 20th.
The company has set a price band of ₹85 to ₹90 per share for the Belrise IPO. According to the Draft Red Herring Prospectus (DRHP), ₹1618 crore of the raised funds will be used to repay existing debt. It is noteworthy that the company had outstanding debt of approximately ₹2600 crore as of December 2024.
What does Belrise Industries do?
Belrise Industries is a leading auto component manufacturer, creating safety and performance-based systems for vehicles ranging from two-wheelers to commercial vehicles. The company's operations are not limited to metal fabrication; it also manufactures polymer-based components, two-wheeler mirrors, suspension systems, and sub-assembly units.
Belrise Industries' reach extends beyond India; it also has a robust export network. The company exports its products to countries such as Austria, Slovakia, England, Japan, and Thailand. Its key clients include prominent brands like Bajaj Auto, Honda Motorcycle and Scooter India (HMSI), Hero MotoCorp, Royal Enfield, and Jaguar Land Rover.
Belrise Industries' Financial Position
Belrise Industries' financial performance has consistently improved over the past few years. Currently, the company has a total of 17 manufacturing units in India, reflecting a b operational foundation. In fiscal year 2023-24, the company recorded revenue of ₹7,484.24 crore, a significant increase compared to ₹6,582.50 crore in 2022-23.
However, the company showed some stability on the profit front. Its net profit in FY24 was ₹310.18 crore, while it was ₹313.66 crore in FY23.
Regarding the IPO structure, the company has reserved 50% of the total issue for Qualified Institutional Buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. Prospective investors must apply in lots of at least 166 shares.
