Belrise Industries IPO: Should You Subscribe?
Get a detailed overview of Belrise Industries Ltd’s IPO, including Financial Analysis, Key Strengths, GMP, Risk Factors and Expert Verdict.
Auto-component maker Belrise Industries Ltd (BIL) launched its initial public offering (IPO) on May 21, 2025, with bidding scheduled to close on May 23, 2025. Ahead of the IPO opening, the grey market premium (GMP) rose to Rs 15, reflecting a 17% premium.
However, investors should have a clear understanding of both the potential rewards and risks before subscribing. This IPO analysis provides a comprehensive review to help make an informed decision.
Belrise Industries IPO Details
- Issue Details: Mainstream
- Issue Size: Rs 2,150 crore
- Fresh Issue: Rs 2,150 crore
- Offer for Sale: Nil
- Price Band: Rs 85 – Rs 90
- Lot Size: 166 shares
- Listing Date: May 28, 2025
Overview of Belrise Industries Ltd
BIL is a leading automotive component manufacturer specializing in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agricultural vehicles. Its product range includes metal chassis systems, polymer components, suspension, body-in-white and exhaust systems, serving both electric and internal combustion vehicles.
With 17 integrated plants processing over 60,000 tonnes of steel annually, BIL’s expertise in precision sheet metal fabrication—especially chassis and suspension assemblies—drives its transition from a Tier-1 to a Tier-0.5 system supplier, offering higher-value assemblies that enhance per-vehicle content and strengthen client partnerships.
Belrise Industries Key Strengths
- Market Leadership: BIL specializes in precision sheet metal pressing and fabrication and ranks among the top three companies in India’s two-wheeler metal components segment, holding a 24% market share by revenue as of FY24.
- Consistent Financial Growth: Between FY22 and FY24, BIL achieved a robust CAGR of 18% in operational revenue, 11% in EBITDA and 9% in net profit, demonstrating steady and sustainable growth.
- Extensive Product Portfolio: BIL offers over 1,000 distinct automotive products, which caters to varied OEM requirements across two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agricultural vehicles.
- Innovation and Expansion: BIL is actively developing proprietary components such as motors, motor controllers and chargers to enhance its content per vehicle, with a strong focus on the EV market. Additionally, the company is diversifying into the renewable energy sector by creating sheet metal structures for solar applications.
Belrise Industries Risk Factors
- Declining Profit Margins: EBITDA margins have decreased from 14.15% in FY22 to 12.54% in FY24, while net profit margins declined from 4.85% to 4.15% during the same period.
- Revenue Concentration: As of December 31, 2024, approximately 64% of BIL’s revenue is derived from its top 10 customers. A decline in business from these key customers could adversely affect its operations and results.
- Legal Risks: BIL and its promoters are currently involved in legal proceedings with outstanding claims totalling Rs 42.2 crore. A negative outcome from these legal challenges could harm the company’s reputation, financial health and cash flows.
Final Thoughts: Should You Subscribe to Belrise Industries IPO?
- BIL is one of the top three players in India’s two-wheeler metal component segment, commanding a 24% market share. While the company has demonstrated consistent growth in revenue and earnings, margin pressures remain a challenge.
- A significant portion of the IPO proceeds (~Rs 1,618 crore) will be utilized to repay debt, which is expected to substantially reduce interest costs and boost profitability going forward.
- From a valuation perspective, the IPO seems reasonably priced. Additionally, the GMP for the IPO signals a positive listing on the stock exchanges.
- In FY24, products suitable for both electric vehicles and internal combustion engines accounted for 56% of operating revenue. Moreover, revenue from EV-specific products grew at a robust CAGR of 24.6% between FY22 and FY24. Supported by strong manufacturing capabilities and trusted OEM partnerships, BIL is strategically positioned to capitalize on the country’s accelerating EV adoption.
- Considering the strong industry tailwinds, consistent financial performance, strategic focus on emerging segments and premium products, along with a fair valuation, investors may find the IPO attractive from a medium-to-long term perspective.
For a deep dive into other IPOs, explore: IPO Corner on Liquide