Belrise Industries IPO opens tomorrow. GMP, review, and other details in 10 points

Belrise Industries IPO: The initial public offering (IPO) of automotive component manufacturing company — Belrise Industries — is set to hit the Indian stock market on Wednesday, May 21, making it the second mainboard offering on the week after Borana Weaves.

Ahead of the Belrise Industries IPO opening, here are key things you should know:

1. Belrise Industries IPO subscription dates

The IPO of Belrise Industries will open for subscription on Wednesday, May 21 and close on Friday, May 23. Ahead of the IPO, the anchor book will open for investors today, May 20.

2. Belrise Industries IPO price band

Belrise Industries' IPO price band has been fixed in the range of ₹85-90 apiece. At the upper band, the company is valued at 26x its FY24 EPS.

3. Belrise Industries IPO lot size

Investors can apply for the Belrise Industries IPO in lots of 166 shares and in multiples thereof. Retail investors need to shell out at least ₹14,110 to subscribe to one lot of Belrise Industries IPO.

4. Belrise Industries IPO size

At the upper end of the price band, Belrise Industries is looking to raise ₹2,150. The IPO is entirely a fresh issue of 23.89 crore shares, with no offer for sale component, meaning all the proceeds from the IPO will go to the company.

5. Belrise Industries IPO Objective

The company plans to use the funds raised for the IPO for the repayment or pre-payment, in full or in part, of certain outstanding borrowings availed by the company and for general corporate purposes.

6. Belrise Industries financials

For the financial year 2024 (FY24), Belrise Industries' revenue from operations was ₹7484 crore, up from ₹6582 crore for the financial year 2023 (FY23) and ₹5397 crore for the financial year 2022 (FY22), growing at a CAGR of 17.76% between FY22 and FY24.

Meanwhile, its profit after tax was largely stable at ₹311 crore in FY24, as against ₹314 crore in FY23, but was higher than ₹261 crore in FY22, recording a CAGR of 6%.

7. Belrise Industries IPO GMP

The grey market premium (GMP) for the Belrise Industries IPO is ₹4.25 apiece. This means Belrise Industries' share price is trading at ₹94.25 in the grey market ahead of the IPO opening, up 4.72% over the IPO price. However, this has declined from 19% two days ago.

8. Belrise Industries IPO review

Brokerage Anand Rathi believes that Belrise Industries IPO is fairly priced and recommended a “Subscribe – Long Term” rating to the issue.

According to the brokerage, the company is a leading automotive component manufacturer in India, ranking among the top three companies in two-wheeler metal components segment, holding a 24% market share based on revenue as of FY24. As a large and well-established precision sheet metal pressing and fabrication company in India, they are well-positioned to capitalise on the growing two-wheeler, three-wheeler and four-wheeler markets in India and internationally, the brokerage said.

"At the upper band, the company is valued at 26x its FY24 EPS. Following the issuance of equity shares, the company's market capitalisation stands at ₹80,089 million, with a market cap-to-sales ratio of 1.07 based on its FY24 earnings. The company is focusing on increasing its Content per Vehicle along with focusing on EVs, 4 Wheelers as Commercial Vehicles," it added.

9. Belrise Industries IPO BRLMs

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 Private Ltd is the registrar for the issue.

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10. About Belrise Industries

Belrise Industries Limited is an automotive component manufacturing company based in India, offering a diverse range of safety-critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.

Their product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components, and exhaust systems, among others. The company’s products are largely agnostic to vehicle powertrain types, reflecting their ability to cater to both electric vehicles and internal combustion engine vehicles.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.