IPO listed on 28 May'25
Belrise Industries Ltd
Minimum Investment
₹ 14,940 / 166 shares
Grey market premium
₹ 24 (26% premium)
Issue price
₹ 90
Listing price
₹ 100
Listing gains
10 (11%)
Listing on
May 28, 2025
Our Verdict:
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- Belrise Industries Ltd (BIL) is one of the top three players in India’s two-wheeler metal component segment, commanding a 24% market share. While the company has demonstrated consistent growth in revenue and earnings, margin pressures remain a challenge.
- A significant portion of the IPO proceeds (~Rs 1,618 crore) will be utilized to repay debt, which is expected to substantially reduce interest costs and boost profitability going forward.
- From a valuation perspective, the IPO seems reasonably priced. Additionally, the positive grey market premium (GMP) signals a positive listing on the stock exchanges.
- In FY24, products suitable for both electric vehicles (EVs) and internal combustion engines (ICEs) accounted for 56% of operating revenue. Moreover, revenue from EV-specific products grew at a robust CAGR of 24.6% between FY22 and FY24. Supported by strong manufacturing capabilities and trusted OEM partnerships, BIL is strategically positioned to capitalize on the country’s accelerating EV adoption.
- Considering the strong industry tailwinds, consistent financial performance, strategic focus on emerging segments and premium products, along with a fair valuation, investors may find the IPO attractive from a medium-to-long term perspective.
About the company
Founded in
25 Sep'96
Managing director
Shrikant Badve
- BIL is a leading automotive component manufacturer specializing in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agricultural vehicles. Its product range includes metal chassis systems, polymer components, suspension, body-in-white and exhaust systems, serving both electric and internal combustion vehicles.
- With 17 integrated plants processing over 60,000 tonnes of steel annually, BIL’s expertise in precision sheet metal fabrication—especially chassis and suspension assemblies—drives its transition from a Tier-1 to a Tier-0.5 system supplier, offering higher-value assemblies that enhance per-vehicle content and strengthen client partnerships.
STRENGTHS
- Market Leadership: BIL specializes in precision sheet metal pressing and fabrication and ranks among the top three companies in India’s two-wheeler metal components segment, holding a 24% market share by revenue as of FY24.
- Consistent Financial Growth: Between FY22 and FY24, BIL achieved a robust CAGR of 18% in operational revenue, 11% in EBITDA and 9% in net profit, demonstrating steady and sustainable growth.
- Extensive Product Portfolio: BIL offers over 1,000 distinct automotive products, which caters to varied OEM requirements across two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agricultural vehicles.
- Innovation and Expansion: BIL is actively developing proprietary components such as motors, motor controllers and chargers to enhance its content per vehicle, with a strong focus on the EV market. Additionally, the company is diversifying into the renewable energy sector by creating sheet metal structures for solar applications.
RISK FACTORS
- Declining Profit Margins: EBITDA margins have decreased from 14.15% in FY22 to 12.54% in FY24, while net profit margins declined from 4.85% to 4.15% during the same period.
- Revenue Concentration: As of December 31, 2024, approximately 64% of BIL’s revenue is derived from its top 10 customers. A decline in business from these key customers could adversely affect its operations and results.
- Legal Risks: BIL and its promoters are currently involved in legal proceedings with outstanding claims totalling Rs 42.2 crore. A negative outcome from these legal challenges could harm the company’s reputation, financial health and cash flows.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 2,150 crore
Fresh Issue
₹ 2,150 crore
OFS
₹ -
Price range
₹ 85 - 90
Lot size
166 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Repayment/ pre-payment of certain borrowings availed by the company; and
- General corporate purposes.
Dates
Bidding open
21 May'25
Bidding close
23 May'25
Allotment date
26 May'25
Refund date
27 May'25
Listing
28 May'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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