Belrise Industries IPO — Price Band, Investment Rationale, Financials, Key Risks And More: ICICI Direct

Belrise Industries' Rs 2,150 crore IPO comprises only of fresh issue with no component of offer-for-sale. The company has fixed the price band in the range of Rs 85-90 Apiece. The minimum order bid lot is 166..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct 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..Objects of the issue The issue is a fresh issue wherein net proceeds from fresh issue will be utilize towards repayment of debt (Rs 1,618 crore) and general corporate purposes..Our view and rating Belrise has grown healthy double digit in the past and with introduction of new products aims for similar growth trajectory going forward as well. With bulk of exposure to two-wheeler space, near term prospects at Belrise also look promising coupled with its premiumisation led content/vehicle increase play With Rs 1,618 crore debt repayment on anvil from IPO proceeds, resulting in imminent annual interest costs savings of ~Rs 150 crore and consequent PAT gain of ~Rs 110 crore coupled with organic growth prospects, Belrise is well poised to clock ~Rs 500 crore of PAT in FY27E which makes it a lucrative offering at 16x P/E on FY27E vs. ~20x PE being commanded by domestic ancillary players. Henceforth, we assign an Subscribe rating on Belrise Industries. Healthy double digit returns ratios and margin profile also provide good margin of safety to our investment thesis. .Key risk & concerns Customer concentration risk, top 10 clients account for 63.8% of sales ~20% of topline is pure ICE components (exhaust), susceptible to EV risk.Exposure to cyclicality in the automotive sector..Click on the attachment to read the full report:.What Does Belrise Industries IPO GMP Indicate Ahead Of Its Opening On May 21.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Belrise Industries IPO — Price Band, Investment Rationale, Financials, Key Risks And More: ICICI Direct

Belrise Industries' Rs 2,150 crore IPO will open for subscription on May 21 for which the price band is set between Rs 85-90 Apiece.

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Belrise Industries IPO — Price Band, Investment Rationale, Financials, Key Risks And More: ICICI Direct

Belrise Industries' Rs 2,150 crore IPO will open for subscription on May 21 for which the price band is set between Rs 85-90 Apiece.

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