Belrise Industries, listed at ₹100 price with a premium of 11.11%

Belsire Industries Limited, a well-known manufacturer of automotive components in India, recently launched its IPO on the BSE and NSE. The IPO was open for subscription from May 21 to May 23, 2025, and comprises only a fresh issue of 23.89 crore equity shares.

The company manufactures metal chassis systems, polymer parts, exhaust systems, and other components for two- and three-wheelers, passenger cars, and commercial vehicles, working with both domestic and foreign auto brands.

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Belrise Industries IPO Listing Details

The IPO price band is fixed at ₹85 to ₹90 per share, with a minimum lot size of 166 shares. This means that retail investors needed to invest ₹14,940 to apply. Investors were advised to bid at the cutoff price due to high demand and possible oversubscription.

Listing Price: The Belrise Industries Limited IPO share price is listed on the BSE and NSE on May 28, 2025, at ₹100 per share. The estimated market capitalisation at listing stood at ₹8,008.91 crore.

Investor Sentiment: Backed by strong revenue figures, long-term OEM partnerships, and a diverse product portfolio, the IPO attracted solid interest from investors across categories.

First-Day Trading Performance Outlook

Belrise Industries is listed on the BSE and NSE at ₹100 per share, reflecting a steady debut in line with market expectations. The company’s strong customer base, diverse automotive product range, and steady financial performance contributed to positive investor response. However, with a post-issue P/E of 24.47, some investors remain cautious, as future returns may depend on margin improvements and sustained demand in the competitive auto component space.

Market Sentiment and Analysis

Belrise Industries manufactures a wide range of automotive components and supplies to 27 OEMs across India and abroad. Its vertically integrated facilities and EV-agnostic product portfolio have supported consistent growth.

Investor Response: The IPO saw strong interest, especially from non-institutional investors, due to the company’s large client base, expanding manufacturing footprint, and focus on safety-critical auto parts.

Growth Highlights: The company reported a profit of ₹352.70 crore in FY 2023–24. However, post-issue EPS has reduced from ₹5.42 to ₹3.68, reflecting equity dilution. Despite this, steady revenue growth and improved net worth continue to support investor confidence.

Growth Drivers and Challenges

Belrise Industries shows strong growth potential due to its wide product portfolio and solid OEM partnerships. However, it also faces some industry-related risks that investors should keep in mind. Here are some key growth drivers and challenges to consider:

Growth Drivers:

• Wide Product Range: Covers components for all vehicle types.
• Strong OEM Ties: Works with top brands like Tata, Honda, and Mahindra.
• EV Compatibility: Products suit both fuel and electric vehicles.
• Large Manufacturing Base: 15 plants across 9 cities support scale.
• Debt Repayment: IPO funds to reduce interest burden.

Challenges:

• High Valuation: Post-issue P/E of 24.47 may limit upside.
• Tough Competition: The Auto parts market is highly competitive.
• Thin Margins: OEM pricing pressure can reduce profits.
• Sector Dependence: The Auto industry cycles affect demand.
• EPS Drop: Post-IPO EPS fell due to share dilution.

Utilisation of IPO Proceeds

Belrise Industries plans to use the IPO proceeds to strengthen its financial position and support business growth. The funds will mainly go towards reducing debt and meeting general corporate needs. This will help the company lower interest costs and improve overall financial flexibility. Here’s how the IPO funds will be used:

• Debt Repayment: ₹1,618.13 crore will be used to repay or prepay existing borrowings, reducing interest expenses.
• General Corporate Purposes: The remaining amount will support business expansion, operations, and other strategic needs.

Financial Performance of Accretion Pharmaceuticals

Belrise Industries has put up a stable financial show with revenue continuity and a sturdy balance sheet. While there was slight pressure on profit margins, the company continues to maintain financial strength. In the following, some of the key financial highlights are given:

• Revenue Increase: Revenue therefore saw an upward movement from ₹6,620.78 crore in FY23 to ₹7,555.67 crore in FY24, showing consistent growth.
• Profitability Rebound:  On the profit side, the PAT stood at ₹352.70 crore in FY24, which was diluted by some ₹4 crore from the preceding year's ₹356.70 crore on account of tax impact. 
• Net Worth Strengthens:  Net worth saw an increase from ₹2,038.20 crore in FY23 to ₹2,577.55 crore as of December 2024, primarily on account of retained earnings.

Belrise Industries has been steadily growing for the past several years with a strong presence in the automotive component sector. Services provided cover a range of products required for both fuel-based and electric vehicles, thus giving the company leverage in the expanding market through long-term relationships with top OEMs. The IPO to be utilised for the repayment of debt would enhance the company's financial stability and pave the way for further expansion. With some challenges like margin pressure and high valuations, the overall opportunity remains favorably viewed by medium- to long-term investors.