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Auto parts maker Belrise Industries hit the bourses with its Rs 2,150 crore IPO today. But the opening lap was underwhelming. As of mid-morning on Day 1 (May 21), the issue had barely budged past the 8 per cent mark in terms of overall subscription. Retail investors and high-net-worth individuals, too, seemed to be waiting in the wings.
For a company with strong clients and solid revenue growth, this wasn't exactly the roar off the starting line it might've hoped for.
What does Belrise Industries do?
Belrise (earlier Badve Engineering) is no newbie in the auto game. Based in Maharashtra, it's been making everything from chassis to exhaust systems for decades. The company supplies over 1,000 components to big names like Bajaj Auto , Tata Motors , Hero MotoCorp and even Jaguar Land Rover. It caters to two-wheelers, passenger vehicles, and commercial EVs.
IPO terms at a glance
| Detail | Info |
|---|---|
| Issue size | Rs 2,150 crore (entirely fresh issue) |
| Price band | Rs 85-Rs 90 per share |
| Lot size | 166 shares |
| Minimum investment | Rs 14,940 |
| Opens | May 21, 2025 |
| Closes | May 23, 2025 |
| Allotment date | May 26, 2025 |
| Listing date | May 28, 2025 (BSE, NSE) |
Why the lukewarm start?
Despite strong anchor backing from global biggies like BlackRock and BNP Paribas (who pumped in Rs 645 crore just before the IPO), public interest seems muted.
The grey market premium (GMP) hasn't helped either — it's been hovering between Rs 4 to Rs 14, hinting at a modest listing pop, if any.
Analysts say the valuation isn't outrageous — at around 26× FY24 earnings — but perhaps not cheap enough to pull in the crowds during uncertain market conditions.
Financials snapshot
| Metric | FY24 | FY23 |
|---|---|---|
| Revenue | Rs 7,555 crore | Rs 6,621 crore |
| Profit after tax | Rs 311 crore | Rs 314 crore |
| Net worth | Rs 2,332 crore | Rs 2,038 crore |
The revenue's been climbing steadily, but net profit in FY24 dipped slightly. Nothing alarming, but in a picky market, it could raise a few eyebrows.
Should investors jump in?
Belrise is playing in a growth sector, especially with EV-related auto parts gaining traction. The IPO money is largely going towards debt repayment — a good sign, as it'll help clean up the balance sheet.
But the muted response on Day 1 and lukewarm GMPs suggest investors aren't rushing in. If you're a long-term investor betting on the future of EVs and believe in Belrise's client network, this could be worth a look. For everyone else, it may be wise to wait and watch how the next two days play out.
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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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