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Belrise Industries is heading to the public markets with a Rs 2,150 crore IPO, opening on May 21. The issue, which is entirely a fresh one (no offer for sale), is meant to give the company a financial tune-up, mainly to reduce its borrowings. The price band is set at Rs 85-90 per share, and listing is expected on May 28.
What does Belrise Industries do?
Belrise Industries is a Pune-based auto components manufacturer that's been around since 1996. It makes chassis, suspension systems, exhaust parts and other metal and polymer components for two-wheelers, cars, commercial vehicles and tractors.
It's a major player in the two-wheeler metal components space, with a 24 per cent market share.
With 15 plants across India, Belrise Industries processes over 60,000 tonnes of steel every year. Its clientele includes names like Bajaj Auto, Hero MotoCorp and Jaguar Land Rover.
Here's a look at the company's fundamentals.
| Metric | Value |
|---|---|
| Net profit (TTM) | Rs 259 cr |
| ROE | 14.2 per cent |
| ROCE | 13.1 per cent |
| Debt-to-equity | 1 |
| Book value | Rs 50.46 |
| EPS | Rs 2.91 |
Belrise Industries IPO snapshot
| Detail | Info |
|---|---|
| IPO size | Rs 2,150 crore (fresh issue) |
| Price band | Rs 85-90 |
| Lot size | 166 shares |
| Min. investment | Rs 14,940 |
| Opens | May 21, 2025 |
| Closes | May 23, 2025 |
| Listing | May 28, 2025 (BSE, NSE) |
| Lead managers | Axis, Jefferies, SBI Cap, HSBC |
| Use of funds | Rs 1,618 crore to repay loans; rest for general purposes |
How's the business doing?
Belrise has shown decent revenue growth, but profits have been flat.
-
FY24 revenue
: Rs 7,484 crore (up from Rs 6,583 crore in FY23)
-
FY24 profit
: Rs 311 crore (slightly down from Rs 314 crore)
- EBIT margin : 8.1 per cent (down 50 basis points YoY)
So, while the top line is growing, profitability is under pressure. That could explain the company's urgency in cutting debt and improving the balance sheet.
What should investors watch?
Belrise wants to clean up its books, strengthen its financials and prep for future growth. The IPO gives retail investors a shot at this transformation story. But there are a few red flags:
-
Heavy dependence on the two-wheeler segment
-
Most plants are in western India - a bit of geographic concentration
- Margins could be sensitive to steel price fluctuations
That said, if the auto sector stays in gear, Belrise could ride the wave.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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