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Belrise Industries has launched its first nationalist offering (IPO) today, May 21, pinch a value set group betwixt Rs 85 and Rs 90 per share. Investors tin participate by applying for a minimum of 166 shares and successful multiples thereafter. This offering, wholly a caller issue, closes connected May 23, aiming to raise Rs 2,150 crore. The allotment of shares is expected to beryllium finalised connected May 26, and nan listing is tentatively group for May 28.
The IPO proceeds are earmarked for pre-payment and repayment of Belrise Industries' indebtedness and for wide firm purposes. Axis Capital, HSBC Securities & Capital Markets, Jefferies India, and SBI Capital Markets are nan lead managers, pinch Link Intime India serving arsenic nan registrar. Belrise Industries' shares will beryllium listed connected some BSE and NSE.
Belrise Industries, established successful 1988 and based successful Waluj, Maharashtra, manufactures basal components for nan automotive sector. The company's portfolio includes expanse metallic and casting parts, polymer components, and suspension systems, catering to two, three, and four-wheel vehicles. Over nan years, it has go a cardinal supplier to automotive giants for illustration Bajaj, Honda, Hero, and Tata Motors, servicing 27 original instrumentality manufacturers (OEMs) globally arsenic of June 2024.
Belrise Industries raised Rs 645 crore from anchor investors arsenic it allocated 7,16,66,665 shares astatine a value of Rs 90 per share. Its anchor book included names for illustration Blackrock, Smallcap World Fund, Prudential Assurance Company, Valuequest India, Pinebridge Global Funds, BNP Paribas, and Tocu Europe among others.
Financially, Belrise Industries reported a nett profit of Rs 245.47 crore and gross of Rs 6,064.76 crore for nan 9 months ending December 31, 2024. In nan fiscal twelvemonth 2023-24, nan institution achieved a nett profit of Rs 352.70 crore connected gross totalling Rs 7,555.67 crore. The company's marketplace capitalisation stands astatine astir Rs 8,010 crore.
The IPO is system to supply 50 per cent of shares to qualified organization buyers, 15 per cent to non-institutional investors, and nan remaining 35 per cent to unit investors. This allocation strategy ensures a broad-based information crossed investor categories.
The competitory scenery for Belrise Industries is robust, pinch nan institution leveraging its divers merchandise scope and beardown customer relationships. The company's strategical attraction connected safety-critical systems and engineering solutions positions it good wrong nan automotive proviso chain.
Investors eyeing this IPO should statement nan captious dates: The offering opens coming and concludes connected May 23. The ground of allotment is expected connected May 26, followed by refunds initiation and in installments of shares by May 27. The tentative listing day is May 28, taxable to marketplace conditions and regulatory approvals. Here's what brokerage firms said astir nan IPO of Belrise Industries:
ICICIDirect Research
Rating: Subscribe
Belrise has grown patient double digits successful nan past and pinch preamble of caller products intends for a akin maturation trajectory going guardant arsenic well. With bulk of vulnerability to 2W space, adjacent word prospects astatine Belrise besides look promising coupled pinch its premiumisation led content/vehicle summation play, said ICICIDirect.
"Belrise is good poised to timepiece Rs 500 crore of PAT successful FY27E which makes it a lucrative offering astatine 16 times P/E connected FY27E compared to different home ancillary players. Henceforth, we delegate an 'subscribe' standing connected Belrise Industries. Healthy double digit returns ratios and separator floor plan besides supply bully separator of information to our finance thesis," it said.
Choice Broking
Rating: Subscribe
Belrise Industries has demonstrated maturation successful some gross and nett profit, its margins person travel nether pressure. To reside this, it is focused connected expanding its contented per vehicle, which is expected to heighten profitability. Driven by rising merchandise income and expanding world presence, it has demonstrated beardown maturation successful revenue, said Choice Broking.
"The planned indebtedness repayment is apt to lend further to separator improvement. The company’s caller acquisition is expected to heighten its merchandise offerings and thrust income growth, contributing positively to its wide business performance. Thus, we urge a 'subscribe' standing for nan issue," it added.
Anand Rathi Shares & Stock Brokers
Rating: Subscribe for agelong term
As of FY24, Belrise classed among nan apical 3 companies successful India’s two-wheeler metallic components segment, holding a 24 per cent marketplace stock based connected revenue. With a beardown way grounds successful process engineering and exertion adoption, they strive to uphold precocious manufacturing excellence crossed each their facilities, said Anand Rathi Shares & Stock Brokers.
Belrise is weighted astatine 26 times its FY24 EPS. The company's marketplace capitalization stands astatine Rs 8,008.9 crore, pinch a marketplace cap-to-sales ratio of 1.07 based connected its FY24 earnings. The institution is focusing connected expanding its Content per Vehicle on pinch focusing connected EV’s, 4 Wheelers arsenic Commercial Vehicles," it added pinch a 'subscribe for agelong term' rating.
Arihant Capital Markets
Rating: Subscribe
Belrise has a 24 per cent marketplace stock successful nan home 2-wheeler conception and long-standing relationships pinch 29 world OEMs, it is well-positioned for growth. It is expanding its contented per conveyance done premium, powertrain-agnostic products and moving up nan worth concatenation from Tier-1 to Tier-0.5 supplier status, said Arihant Capital Markets.
"Strategic diversification into EV components, CNG systems, and star expanse metallic parts enhances semipermanent visibility. These strengths, on pinch expanding automation and vertical integration, supply a beardown instauration for separator description . At nan precocious set of Rs 90, nan rumor is weighted astatine a PE ratio of 25.76 times. We are recommending a 'subscribe' standing for this issue," it said.
SMIFS
Rating: Subscribe
As nan manufacture pivots toward premiumization, electrification, and world proviso concatenation integration, Belrise is forward-looking strategies and execution way grounds support a valuation premium, making it a compelling maturation and separator description communicative successful India’s evolving car constituent sector, said SMIFS.
"We urge to subscribe to nan rumor arsenic a bully agelong word finance arsenic station commissioning and ramp-up of nan capacity description being undertaken, nan institution would timepiece decent topline and bottomline maturation coupled pinch separator betterment and nan valuations look to connection apt separator of information successful nan agelong term, backed by descent credentials," he said.
BP Equities
Rating: Subscribe
Belrise has launched a accumulation statement for expanse metallic parts for star panels, supplying a important North American star power company, further diversifying its operations, said BP Equities. "The rumor is weighted astatine a P/E ratio of 17.8 times, based connected FY25 earnings, which is comparatively cheaper compared to its peers. We urge a 'subscribe' standing for this issue," it added.
Ventura Securities
Rating: Subscribe
Belrise leverages beardown integration, complete 700 robots, and IoT-enabled plants to guarantee quality. 74 per cent of FY24 gross came from EV-agnostic parts. It's expanding into EV-specific components pinch a Pune works for hub motors and chargers, backed by 5 patents and a Chinese tech deal, said Ventura Securities.
"A caller acquisition of a Delhi-based integrative molding patient boosts its beingness pinch Japanese OEMs and high-tensile components. In Q1FY25, gross stood astatine Rs 1,780.9 crore pinch a 13.5 per cent Ebitda margin. Belrise is well-positioned to turn crossed EVs, exports, and value-added products," it added pinch a 'buy' rating.
Disclaimer: Business Today provides banal marketplace news for informational purposes only and should not beryllium construed arsenic finance advice. Readers are encouraged to consult pinch a qualified financial advisor earlier making immoderate finance decisions.
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