Belrise Industries IPO: Rs 2,150 Cr Fresh Issue Opens For Subscription Tomorrow; Is It Worth Subscribing?

The highly anticipated Belrise Industries IPO is set to open for subscription on Wednesday, May 21st, and has already created a lot of buzz in the primary market. Belrise Industries is one of the largest players in India's 2-wheeler metal component market, holding a 24% market share as of FY24. Investors are showing keen interest as the shares of Belrise Industries are currently commanding a grey market premium (GMP) of Rs. 14, which translates to a listing gain of over 16%.

Belrise Industries IPO Details

The Belrise IPO is a book-built issue worth Rs. 2,150 crore, consisting entirely of a fresh issue of 23.89 crore equity shares. The IPO will remain open for bidding from May 21 to May 23, 2025. The basis of allotment is expected to be finalised on May 26, and the Belrise IPO listing date is tentatively set for Wednesday, May 28, 2025, on both BSE and NSE.

The IPO is managed by top-tier investment banks including Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, Jefferies India Private Limited, and SBI Capital Markets Limited.

Belrise IPO Price Band and Lot Size

The Belrise IPO price band is set at Rs.85 to Rs. 90 per share. For retail investors, the minimum lot size is 166 shares, amounting to an investment of ₹14,110 at the lower end. However, bidding at the cutoff price of Rs. 90 is advisable to ensure allotment, which brings the minimum investment to Rs. 14,940.

Belrise IPO GMP Today (Grey Market Premium)

As per the latest data from Investorgain, the Belrise IPO GMP is Rs. 14.5 as of May 20, 2025, 3:57 PM. Considering the upper price band of Rs. 90, the expected listing price of the Belrise Industries IPO could be around Rs. 104.5, offering a potential listing gain of 16.11%.

Should You Subscribe to the Belrise IPO?

ICICI Securities has given a "Subscribe" rating to the Belrise IPO, suggesting it is a good opportunity for investors looking for long-term growth and returns.

According to their report, Belrise Industries has shown strong growth in the past and is expected to continue growing as it introduces new products. The company earns most of its revenue from the 2-wheeler segment, which is looking strong in the near future.
A big positive is that Belrise plans to use Rs. 1,618 crore from the IPO to repay debt. This will help the company save around Rs 150 crore every year in interest payments, and its net profit is expected to increase by about Rs 110 crore.

ICICI Securities expects Belrise to report a profit of around Rs. 500 crore by FY27, which makes the IPO price look attractive when compared to similar auto component companies. While others are trading at a price-to-earnings (P/E) ratio of around 20x, Belrise is being offered at a lower 16x P/E, which gives investors more value for money.

About Belrise Industries

Belrise Industries Limited, formerly known as Badve Engineering Limited, is a prominent Tier-1 automotive component manufacturer in India, established in 1988. Headquartered in Pune, Maharashtra, the company specialises in producing a wide range of components for two-wheelers, three-wheelers, and four-wheelers, including passenger and commercial vehicles. With a turnover of Rs 7,484.2 crore as of 2023, Belrise operates over 15 manufacturing facilities across seven Indian states, employing a workforce exceeding 15,000 individuals. The company's product portfolio encompasses metal processing, polymer processing, surface treatment, mirror systems, suspension systems, foundry operations, home appliances, security hardware, e-mobility components, and even floriculture.