The IPO market in India in 2025 has remained subdued, when compared to the same period in 2024.
The volatility in the broader stock markets has led to a more cautious approach this year. The market sentiment remains lacklustre as several recent IPOs are trading below their issue price.
Belrise Industries IPO is a 100% book-built issue that aims to raise ₹2,150 crore via a fresh issue of 23.8 crore shares. The money raised from the IPO will be used for repayment or prepayment of borrowings and General corporate purposes.
The company specialises in designing and manufacturing a broad range of products for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.
Its product portfolio includes sheet metal parts, polymer components, suspension systems, chassis frames, exhaust systems, mirror systems, and other safety-critical automotive components. It also supplies components for electric vehicles and has begun delivering e-mobility subsystems
Belrise Industries IPO will open for bidding on May 21, and the window will close on May 23. With this offering, the company is planning to raise around Rs 2,150 crore by issuing 23.89 crore fresh equity shares. There is no offer for sale component, which means all the money raised will go directly to the company for future plans.
The price band of this mainboard issue is set between Rs 85 and Rs 90 per share. For retail investors, the minimum investment is one lot (166 shares). Bidding at the upper end of the price band (Rs 90) will cost Rs 14,940.
For non-institutional investors – Small NIIs will need to apply for 14 lots (2,324 shares), costing approximately Rs 2.09 lakh. Big NIIs must apply for 67 lots (11,122 shares), totalling around Rs 10 lakh
The basis of allotment is likely to be finalised by May 26, and shares are expected to get listed on both the exchanges – NSE and BSE by May 28.
Strength#
- Diverse and Robust Product Portfolio: Belrise Industries offers over 1,000 automotive components, including chassis systems, exhaust systems, body-in-white parts, polymer components, battery containers, suspensions, and steering columns.
- Strong Manufacturing Footprint: The company operates 17 manufacturing plants across 10 cities in 9 states in India, demonstrating significant scale and geographic diversification.
- Established Client Base: Belrise Industries has long-term relationships with 29 original equipment manufacturers (OEMs).
- No Offer for Sale Component: The IPO consists entirely of new equity shares, indicating the promoters are not selling their stake and are focused on raising capital for expansion rather than exit.
- Use of IPO Proceeds for Debt Reduction: Rs 16.18 bn of the Rs 21.5 bn IPO proceeds will be used to repay debt.
- Reasonable Valuation: The IPO price band of Rs 85-90 per share implies a moderate PE ratio (around 18-24x based on FY24 earnings).
Risks and threats#
The company is heavily dependent on some of its customers for a large share of its revenue (63.82% for 9MFY25).
Seven out of the 17 of the company’s manufacturing facilities are located in Maharashtra, exposing it to regional risks like natural disasters or economic changes.
Conclusion#
Belrise Industries is a strong mid-sized player in the Indian auto components sector with a diversified product portfolio and significant market share in two-wheeler metal components.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.