The three‑day public offer of auto‑component maker Belrise Industries hits the Street today, riding on a double‑digit grey‑market premium (GMP) and a packed anchor book. The bidding window will close on May 23. Let’s take a look at the key details of this mainboard issue from the price band and GMP to the listing date.
Belrise Industries IPO: Price Band, lot size and investment details
The price band for the IPO has been fixed at Rs 85 to Rs 90 per share. Retail investors can place bids for a minimum of one lot, which is 166 equity shares, translating to a minimum investment of Rs 14,110 at the lower end and approximately Rs 14,940 at the upper cutoff. For high-net-worth investors, the minimum lot size for small NII (sNII) is 14 lots (2,324 shares) worth about Rs 2.09 lakh, and for big NII (bNII) it is 67 lots (11,122 shares) worth nearly Rs 10 lakh.
Belrise Industries IPO: GMP
As of this morning, the grey market premium (GMP) for Belrise Industries IPO is hovering around Rs 10 per share. This means the IPO is currently quoting at an expected listing price of Rs 100, marking an 11.1% premium over the upper end of the price band. However, it is important to note that this is not the official or the actual listing price and may fluctuate based on market sentiment.
Belrise Industries IPO: Subscription status – Early trends on Day 1
As of now, the IPO has been subscribed 0.08 times overall so far. The retail portion saw a better response, subscribed 0.11 times, followed by 0.14 times in the NII category. The QIB quota is yet to see bids, as per chittorgarh.
Belrise Industries IPO: Anchor Investment
Ahead of its IPO opening, Belrise successfully raised Rs 645 crore from marquee anchor investors. The anchor book saw participation from global giants like BlackRock, Capital Group, M&G, PineBridge, and domestic institutions such as ICICI Prudential MF, HDFC MF, Nippon India MF, Bajaj Allianz Life and ValueQuest. Of the total shares allotted to anchor investors, nearly 42.7% went to five domestic mutual funds across ten different schemes.
Belrise Industries IPO: Risk factors
The company has flagged some risks in its Draft Red Herring Prospectus (DRHP). Here are a few from the document:
“Seven out of our 15 manufacturing facilities are located in the state of Maharashtra. This concentration poses potential for regional risk exposure, which may adversely affect our business, results of operations, financial condition and cash flows.”
“Revenue from our ten largest customers comprise a significant portion of our revenue from operations (57.42% for the three months ended June 30, 2024, 50.77% for the Financial Year 2024, 57.93% for the Financial Year 2023 and 64.43% for the Financial Year 2022). Any failure to maintain our relationship with these customers or any adverse changes affecting their financial condition will have an adverse effect on our business.”
“If we are unable to maintain the existing levels of capacity utilization at our manufacturing facilities, our margins and profitability may be adversely affected. Further, a slowdown or shutdown in our manufacturing operations could have an adverse effect on our business.”
Belrise Industries IPO: Tentative allotment and listing dates
As per the IPO timeline, the allotment of shares is expected to be finalised by May 26, while the listing on BSE and NSE is tentatively scheduled for May 28.
About the company
Belrise Industries, formerly known as Badve Engineering, is a manufacturer of automotive systems and components. The company operates 15 manufacturing facilities, with seven located in Maharashtra, supplying products to some of the leading automobile brands in India. Its client concentration is high, with the top 10 customers contributing over 50% of revenues in recent financial years.
