Belrise Industries IPO — Price Band, Listing Date, Strengths, Risks & More: Read DRChoksey's Analysis

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DRChoksey Report

Belrise Industries Ltd. will launch its initial public offering on May 21 and the offer closes for subscription on May 23. An automotive component manufacturing company has fixed the price band in the range of Rs 85-90 Apiece. The minimum order bid lot is 166.

The Rs 2,150 crore IPO comprises only of fresh issue with no component of offer-for-sale.

The allotment for Belrise Industries IPO is expected to be finalized on May 26.

The shares will be listed on both the National Stock Exchange and the BSE on May 28.

Objects of the Offer

• Repayment/Pre-payment of certain outstanding borrowings availed by the company.

• General corporate purposes.

Outlook and Valuation:

Belrise Industries revenue has grown at 17.8% CAGR between FY22 and FY24, driven by its diverse product portfolio. Moreover, the company has established strong relationships with major OEMs, providing a stable export revenue stream. The company’s focus on premium, high-margin products, including EV components, lightweight chassis, and proprietary systems, supports long-term profitability.

The Company is well-positioned to capitalize the demand in the automotive component sector, benefiting from its diversified product portfolio across two-wheelers, three-wheelers, four-wheelers, and commercial vehicles.

Additionally, its ongoing capacity expansions across India, supported by advanced manufacturing technologies like IoT and automation, position it for scalable growth.

Belrise Industries earnings has grown at 9.0% CAGR between FY22 and FY24 (in similar range of Minda Corporation and JBM Auto), while it is available at 24.5x 9MFY25 annualized P/E, much lower than all its peers.

We believe Belrise appears to be attractively valued compared to peers and can be applied for listing gains . We assign a "Subscribe" rating to the IPO.

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