Mumbai: Pune-based auto components manufacturer Belrise Industries’ IPO opens today for 23.8 crore shares with a price band of Rs.85-90 per share. This development comes after the company issued 7.16 crore equity shares valued at Rs.645 crore from anchor investors a day before its IPO.
Belrise Industries had reported a net profit of Rs. 54.69 crore for Q1 FY25, a 29.2% increase from last year. The company’s revenue also grew 11.6% from Rs. 1,268 crore in Q1 FY 24 to Rs. 1,416 crore in Q1 FY 25. These strong financials make this IPO an investor favourite, with brokerages giving a ‘subscribe’ rating for it.
“While the company has demonstrated growth in both revenue and net profit, its margins have come under pressure. To address this, BIL is focused on increasing its content per vehicle, which is expected to enhance profitability. Additionally, the planned debt repayment is likely to contribute further to margin improvement. The company’s recent acquisition is expected to enhance its product offerings and drive sales growth, contributing positively to its overall business performance. Thus, we recommend a ‘Subscribe’ rating for the issue,” Brokerage firm Choice Broking explained in its report.
Half of the IPO has been reserved for Qualified Institutional Buyers (QIPs), while 35% has been allocated to retail investors and the remaining 15% to non-institutional investors.
Belrise Industries has longstanding relationships with leading automakers like Honda Motorcycles and Scooters India, Bajaj Auto, Hero MotoCorp and Royal Enfield Motors. As of December 2024, the company has 17 manufacturing locations across 10 states.
The company holds a 24% market share in the metal auto component market for two-wheelers, supplying essential parts like chassis, safety systems, suspension systems, and exhausts for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and even agri-vehicles.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
