Belrise Industries IPO shares list at 11% premium; book profit or hold?

Business Standard

7 days ago

Belrise Industries share price: Shares of automotive sheet metal and casting parts maker company Belrise Industries made a positive D-Street debut on Wednesday, May 28, following the completion of its initial public offering (IPO). The company's shares listed at ₹100 per share on the NSE, reflecting a premium of ₹10 or 11.11 per cent over the issue price of ₹90 per share.
On the BSE, Belrise Industries shares listed at a slightly lower premium of ₹8.50 or 9.44 per cent at ₹98.50 per share.
Belrise Industries IPO listing fell short of grey market estimates. Ahead of the listing, the unlisted shares of Belrise Industries were trading around ₹111 per share, reflecting a grey market premium (GMP) of ₹21, or 23.33 per cent, over the issue price, revealed sources tracking unofficial market activities.
Should you book profit or hold?
Belrise Industries listing, Prashanth Tapse, Senior VP (Research), Mehta Equities, said, was well below street expectations amid a subdued market. "The offer received an overwhelming response to its initial public offering (IPO), with the overall subscription reaching over 41 times, significantly surpassing street expectations."
Given the market momentum and risks, Tapse recommended that allotted long-term investors continue to 'Hold', expecting volatility in the short- to medium-term, while conservative allotted investors may look to book profits on listing day.
Belrise Industries IPO details
Belrise Industries comprises an entirely fresh issue of 238.9 million equity shares aggregating up to ₹2,150 crore. Belrise Industries, offered at a price band of ₹85–90 with a lot size of 166 shares, received bids for 7,31,30,39,198 shares against the 17,70,58,824 shares offered, resulting in an oversubscription of 41.30 times by the end of the subscription period, showed the NSE data.
Qualified institutional buyers (QIBs) led the demand for the Belrise Industries IPO by subscribing to 108.35 times the portion reserved for them. This was followed by non-institutional investors (NIIs) at 38.33 times, and retail investors at 4.27 times.
Belrise Industries IPO was available for subscription from Wednesday, May 21, 2025, till Friday, May 23, 2025. The basis of allotment was finalised on Monday, May 26, 2025. The company set the issue price at ₹90 per share.
Belrise Industries will use the proceeds from the public offering for the repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company, and for general corporate purposes.
About Belrise Industries
Belrise Industries is an automotive component manufacturing company based in India, offering a diverse range of safety-critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles. Their product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components, and exhaust systems, among others. The company's products are largely agnostic to vehicle powertrain types, reflecting its ability to cater to both electric vehicles and internal combustion engine vehicles, thus positioning itself favorably to adapt to the growing electric vehicle market.