In the grey market, Belrise Industries’ shares are commanding a premium of Rs 28.5, suggesting an estimated listing price of Rs 118.5 per share. This translates to a potential gain of about 32% over the issue price, reflecting positive market sentiment ahead of the listing.
Company Overview
Belrise Industries, formerly known as Badve Engineering, is a Pune-based automotive component manufacturer established in 1988. The company specializes in producing a wide range of components, including metal chassis systems, polymer parts, suspension systems, body-in-white components, and exhaust systems.
These products cater to various vehicles, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
With a market share of 24% in the two-wheeler metal components segment in India, Belrise serves a diverse clientele, including prominent original equipment manufacturers (OEMs) such as Bajaj Auto, Honda, Hero MotoCorp, Royal Enfield, Jaguar Land Rover, Tata Motors, and Mahindra.
Financial Performance
In the fiscal year 2023-24, Belrise Industries reported a revenue of Rs 7,555 crore and a profit after tax of Rs 353 crore. The company plans to utilize the IPO proceeds to repay or prepay certain borrowings and for general corporate purposes.
Analyst take
Several brokerage firms have expressed confidence in Belrise Industries’ prospects. ICICI Securities, Geojit Financial Services, Choice Broking, and Anand Rathi have all recommended subscribing to the IPO, citing the company’s strong market position, diversified product portfolio, and growth potential in both electric and internal combustion engine vehicle segments.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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