Belrise Industries raises ₹645 cr from anchor investors, IPO to open today; check GMP, other details

Ahead of the opening of its public issue today, auto components manufacturer Belrise Industries raised ₹645 crore from anchor investors on Tuesday. The ₹2,150-crore initial public offering (IPO) of Belrise will open for subscription Wednesday, while the issue will close on May 23. The shares of Belrise Industries were commanding grey market premium (GMP) of ₹12 in the unlisted market, indicating positive interest among investors.

The company informed the bourses that it allocated 71,666,665 equity shares at the upper end of the price band at ₹90 per share to anchor investors. The investors who participated in the anchor book include foreign institutions like BlackRock, Capital Group, M&G, Pinebridge and domestic institutions like ICICI Prudential MF, HDFC MF, Nippon India MF, ValueQuest, and Bajaj Allianz Life.

Out of the total allocation of 71,666,665 equity shares to the anchor investors, 30,613,484 equity shares were allocated to 5 domestic mutual funds through a total of 10 schemes, i.e. 42.72% of the total anchor book size.

Axis Capital Limited, Jefferies India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Limited are the book-running lead managers, and MUFG Intime India Private Limited is the registrar of the issue.

IPO details

The Belrise Industries IPO is entirely a fresh issue of equity shares with no offer-for-sale component, which means all the capital will go to the company. The Maharashtra-based company, which recently announced the acquisition of H-One India from Japan-based publicly listed H-One Co., has set a price band of ₹85-90 per share, pegging the market capitalisation at around ₹8,009 crore.

The lot size for the IPO is 166 shares and in multiples thereafter. The minimum application amount for retail investors is ₹14,110 for one lot.

As per the DRHP filed with the Sebi, the company has reserved 50% of the shares for qualified institutional buyers (QIB), up to 15% for non-institutional institutional investors (NII), and remaining 35% for retail investors.

Belrise intends to use the net proceeds from the issue towards repaying certain outstanding borrowings availed by the company. A part of the capital will be used for general corporate purposes.

The company posted profit after tax of ₹310.88 crore for FY24, while revenue from operations stood at ₹7,484.21 crore. For the nine months ended December 31, 2024, revenue from operations was at ₹6,013.43 crore and profit after tax stood at ₹245.47 crore.

This is going to be the second mainboard IPO of FY26, after Ather Energy, a leading electric scooter manufacturer, raised ₹2,981 crore by publicly listing its shares on the domestic bourses early this month. So far this calendar year, 11 mainboard IPOs garnered a total of around ₹19,000 crore via IPO route, with the first 10 listing in the first two months of CY25. The shares of Belrise Industries are expected to be listed on the BSE and the NSE on May 28, following the allotment of shares on May 26.

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