Belrise Industries shares list at 11% premium over IPO price. Should you ride this auto stock or hit the brakes?
Shares of
Belrise Industries
made a strong debut on the bourses Wednesday, listing at a premium of over 11% to its IPO price, following intense investor interest in the Pune-based auto components manufacturer's Rs 2,150 crore offering.
The stock opened at Rs 100 on the NSE, reflecting an 11.11% gain over the issue price of Rs 90. On the BSE, it listed slightly lower at Rs 98.50, translating to a 9.44% premium.
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Market buzz vs reality
Ahead of its debut, Belrise's shares were commanding a Rs 28.5 premium in the grey market, implying a listing price of Rs 118.5, nearly 32% higher than the issue price. While actual gains fell short of grey market expectations, the stock still managed a healthy pop in a market that has recently turned more selective on IPO debuts.
About Belrise Industries
Founded in 1988 and formerly known as Badve Engineering, Belrise Industries is a key player in India's automotive supply chain. The company manufactures metal chassis systems, polymer parts, suspension systems, exhaust systems, and body-in-white components, serving a range of vehicle categories—two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
Belrise holds a 24% market share in India's two-wheeler metal components segment. Its customer list includes top-tier OEMs like
Hero MotoCorp
,
Bajaj Auto
, Honda, Royal Enfield, Jaguar Land Rover,
Tata Motors
, and Mahindra.
In FY24, the company posted revenue of Rs 7,555 crore and net profit of Rs 353 crore. The IPO proceeds are earmarked for debt repayment and general corporate purposes.
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Analysts weigh in
Belrise's IPO was heavily oversubscribed, with 41.3 times overall subscriptions, including 108.35 times by QIBs, 38.33 times by NIIs, and 4.27 times by retail investors, signaling broad-based confidence in the company's outlook.
Brokerages such as ICICI Securities,
Geojit Financial Services
, Choice Broking, and Anand Rathi had all recommended subscribing to the IPO, citing Belrise's robust OEM relationships, diversified product lines, and exposure to both traditional and electric vehicle (EV) segments.
Gaurav Garg of Lemonn Markets Desk said Belrise Industries made a strong market debut and looking beyond the debut, "the company, a key supplier of safety-critical components and engineering solutions for two-wheelers, three-wheelers, four-wheelers, and commercial/agri vehicles, partners with top OEMs like Hero MotoCorp, Bajaj Auto, and Jaguar Land Rover. Its strong OEM ties and focus on future-ready segments make it a promising pick for medium-term to long-term investors."
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Belrise Industries shares list at 11% premium over IPO price
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