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Economic Times
23-05-2025
- Business
- Economic Times
Belrise Industries IPO subscribed 5 times on Day 3: GMP rises to Rs 23
The initial public offering (IPO) of Belrise Industries, which opened for subscription on Wednesday, was booked 4.9 times by the third and final day of bidding. ADVERTISEMENT As of 10:57 AM, the IPO had received bids for 86,68,45,028 shares. The highest interest came from non-institutional investors (NIIs), who subscribed 16.91 times their allotted quota. Retail investors subscribed 2.11 times, while qualified institutional buyers (QIBs) subscribed 0.76 times. Ahead of the issue opening, the grey market premium (GMP) for Belrise Industries rose from Rs 14–15 on Day 2 to around Rs 22–23 on Day 3, indicating a premium of about 24%. Out of the total IPO proceeds of Rs 2,150 crore, the company plans to use Rs 1,618 crore for repaying certain borrowings, aimed at reducing interest costs and improving its balance sheet. The remaining amount will be allocated for general corporate purposes.. The IPO is being managed by a consortium of leading investment banks, including Axis Capital, Jefferies India, HSBC Securities, and SBI Capital Markets. Link Intime India has been appointed as the registrar for the issue. ADVERTISEMENT Analysts said Belrise has grown healthy double digit in the past and with introduction of new products aims for similar growth trajectory going forward as well."With Rs 1,618 crore debt repayment on anvil from IPO proceeds, resulting in imminent annual interest costs savings of Rs 150 crore and consequent PAT gain of Rs 110 crore coupled with organic growth prospects, Belrise is well poised to clock Rs 500 crore of PAT in FY27E which makes it a lucrative offering at 16x P/E on FY27E vs 20x PE being commanded by domestic ancillary players. Henceforth, we assign a SUBSCRIBE rating on Belrise Industries," said ICICI Direct. ADVERTISEMENT The IPO opened for subscription on May 21 and will close on May 23. The share allotment is scheduled for May 26, while the stock's listing is expected on May 28. ADVERTISEMENT Belrise Industries is a prominent manufacturer of safety-critical automotive components. The company specialises in producing metal chassis systems, polymer parts, suspension systems, and exhaust solutions for a wide range of vehicles, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural customer portfolio features leading automotive brands such as Bajaj Auto, Honda, Hero MotoCorp, Royal Enfield, Jaguar Land Rover, Tata Motors, and Mahindra. As of June 2024, Belrise caters to 27 OEMs globally and operates 15 manufacturing facilities spread across nine Indian FY24, the company reported revenue of Rs 7,555 crore and a profit after tax of Rs 352.7 crore. With its strong financial performance, well-established client base, and emphasis on EV-agnostic components, analysts believe the IPO is likely to attract significant interest from a broad spectrum of investors. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Zawya
20-05-2025
- Business
- Zawya
India's Groww plans to file for up to $1bln IPO: IFR
Indian online broker Groww plans to file confidentially for an up to US$1bn IPO over the next few weeks, people with knowledge of the transaction said. Axis Capital, Citigroup, JP Morgan, Kotak and Motilal Oswal are the banks on the IPO. The company shifted its domicile from the US to India last year to enable a local listing. CEO Lalit Keshre is the co-founder of the company, whose other shareholders include Y Combinator, Peak XV Partners and Tiger Global.
Entrepreneur
19-05-2025
- Automotive
- Entrepreneur
Belrise to go Public, Colorbar Plans IPO in 2027
Belrise Industries, a manufacturer of components for the automotive and white goods industries, is planning to raise INR 2,150 crore through an initial public offering (IPO) with a fresh issue of 23.89 crore equity shares. The IPO is open for public subscription on May 21, 2025. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Belrise Industries, a manufacturer of components for the automotive and white goods industries, is planning to raise INR 2,150 crore through an initial public offering (IPO) with a fresh issue of 23.89 crore equity shares. The IPO is open for public subscription on May 21, 2025. The issue does not include any shareholders selling shares, and the funds raised from the issue will be collected by the listing company. According to the draft red herring prospectus (DRHP), the price band for the IPO has been set at INR 85-90 per equity share, with the minimum lot size for retail investors being 166 shares. Minimum bid for small non-institutional investors (SNII) has been set at 2,334 shares, while bigger non-institutional investors are allowed to purchase INR 11,122 shares. Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, Jefferies India Private Limited, and SBI Capital Markets Limited are appointed to manage the IPO, with Link Intime India Private Ltd being the registrar for the issue. According to reports, the share allotment is expected to be made final on May 26, 2025 and the shares are poised to be listed on both BSE and NSE on May 28, 2025. Belrise's portfolio consists of products such as automotive sheet metal and casting parts, polymer components, suspension, and mirror systems specifically for two, three, and four-wheeler passenger and commercial vehicles. Colorbar Cosmetics Beauty products brand Colorbar Cosmetics is also planning to launch its IPO in early 2027, told its founder and Managing Director, Samir Modi according to Reuters. According to the report, Colorbar is hoping to surpass the INR 1,000 crore revenue mark, spurred by its store upgrades and packaging-related improvements. The company, valued between INR 2,500-3,500 crore, aims to use the funds raised by the listing to scale its product portfolios and explore both regional and international acquisitions. Modi said that the company will go public in 2027 and that the funds will help the company in brand diversification and overseas expansion, according to the report. Market Outlook According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediaries, Nifty opened on a flat to negative note, witnessed consolidation in a narrow band, and finally settled the day on a negative note at 24,945 levels. The volatility index, India VIX, surged by 4.98 per cent to 17.38, indicating a rise in market volatility. "Technically, Nifty formed a small red candle on the daily scale. However, the index is still holding above the breakout zone, which indicates underlying strength," added Yedve. Bajaj Broking, in a market commentary, said," Domestic benchmark indices ended lower on Monday, weighed down by weak global cues, heightened volatility, and a sharp sell-off in IT stocks. Negative sentiment was further exacerbated by Moody's downgrade of the US sovereign credit rating, which triggered risk-off sentiment across equity markets."
Time of India
19-05-2025
- Business
- Time of India
Electronics manufacturing sector set for growth: These 3 factors make it a good bet
Strong domestic demand, government support, substantial export opportunities and benefits from the China Plus One strategy are driving the performance of the electronics manufacturing services (EMS) segment. The sector includes design, assembly and testing of components for products ranging from IT, consumer electronics, industrial electronics, auto, telecom equipment, lighting and printed circuit board assembly (PCBA). The sector's historical performance and estimates highlight its resilience. Between 2019-20 and 2023-24, EMS companies (including component manufacturers) recorded revenue CAGR ranging from 8% to 49%. The estimates for the next three years, over 2023-24 and 2026-27, anticipate a healthy revenue growth CAGR between 22% and 69%. The data is compiled from an Axis Capital report released in April 2025. The order books of the EMS companies are growing, aided by a diversified client base and entry into new segments, like smart meters, railways and IT. Moreover, focus on gaining higher wallet share, improved product mix, and cost control measures, have helped the companies maintain healthy profit margins. Electronics demand is expected to remain healthy due to low penetration levels and rising disposable incomes. While the domestic production of electronic goods has increased by a CAGR of more than 17%, the exports of electronic goods have grown at a CAGR of over 20% between 2014-15 and 2023-24, according to a March 2025 PIB release. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thailand: New Small Electric Car For Seniors. Prices Might Surprise You. Electric Cars | Search Ads Undo Segment-wise growth drivers Mobile phones have contributed significantly to the EMS segment with the highest CAGR growth in the last four years among other segments. The performance was aided by policy support, like differential duties, Phased Manufacturing Program (PMP) for sub-assemblies, and large-scale electronics PLI (production linked incentives). IT hardware is another key driver of the EMS industry. According to an Emkay report released in the last week of March 2025, strong policy push, rising trust in India as a supply-chain destination and its cost advantage over China are some factors that will support growth in the IT hardware segment. The government has set a target output of $40 billion for the IT hardware segment by 2030. The PCBA segment is gaining significance due to the government's focus on domestic manufacturing, growing demand for miniaturised gadgets and increased digitisation of the medical sector. Live Events PCBAs are required to operate a wide variety of electronic products such as mobile phones, tablets, laptops, desktops, gaming consoles, televisions, washing machines, microwave ovens, ACs, refrigerators, automobiles, medical equipment, and industrial products. The improved value addition is expected to drive orders and revenue growth over the next two-three years. The other segment where EMS companies (especially the contract manufacturers) are growing is the heating, ventilation, and airconditioning segment. The strong demand for RACs (room air conditioners), coupled with government incentives in the form of PLI schemes for white goods, has motivated contract manufacturers to increase manufacturing capacities for RAC. This includes RAC assembly and components, including injection moulding, heat exchangers, and fans. The Axis Capital report believes that efficient resource utilisation, cost competitiveness, a smoother component supply chain, seasonal products, and demand surpassing supply are some of the factors that will continue to encourage contract manufacturing companies to increase manufacturing capacities. Government incentives The government aims to boost electronics industry output to $500 billion by 2030 and has introduced several measures to support the EMS sector growth. These include the Make in India initiative, PLI, and fiscal benefits like duty exemptions. 'Ease of doing business, policy predictability, identification and addressal of disabilities, capitalising on positive geopolitical developments, and incentive support where necessary are identified as key drivers for achieving the electronics output target,' says the Emkay report. Electronics PLI and white goods PLI saw massive success in terms of localising production of mobiles and ACs in India by incentivising assembly; however, inadequate domestic supply of components used in these products has forced the companies to rely on imports. Mobile phones led electronics output Consumer electronics include televisions, digital cameras, PDAs, calculators, audio devices, headphones. Industrial electronics include power electronics, DC/ AC converters. Strategic electronics include military communication systems and satellite-based communication. Source: Axis Capital report. To curb component imports, the government launched the Indian Semiconductor Mission in 2021. The initiative has driven significant progress across the semiconductor ecosystem—including fabrication, packaging, design, and skill development. Also, multiple projects in the semiconductor space, from Tata Electronics, CG Power and Industrial Solutions and Kaynes Technology, received approvals in 2024. Powered up The government also approved the electronics component PLI for non-semiconductor components with an outlay of Rs.22,900 crore in March 2025. The scheme offers turnover-linked, capex-linked and hybrid incentives and aims to develop a component ecosystem in India. The scheme is targeted at increasing domestic value addition and integrating Indian companies into global value chains, says a JM Financial report. Analysts are bullish on PG Electroplast, Dixon Technologies and Avalon Technologies. PG Electroplast The contract manufacturer for consumer electronics and home appliances reported a strong performance in the March 2025 quarter. While the revenue grew by 77% year-on-year, net profit registered 104% growth. It reported growth across product categories (RACs, washing machines and coolers). The management has provided a strong year-on-year revenue and net profit guidance of 30.3% and 39.2% respectively, for 2025-26. It has planned capital expenditure of Rs.800-900 crore for 2025-26 for the establishment of new greenfield facilities, enhancing production capacity and improving operational efficiency. New product launches, deepening client relationships, strong balance sheet, robust order book and strategic investments are some of the key strongholds of the company. PhillipCapital report maintains its earnings estimates for 2026-27 but retains a neutral rating as it expects a moderate growth in the RAC segment in 2025-26. The report mentions that the moderate growth may create challenges in attaining the stated revenue guidance. Dixon Technologies (India) The EMS player offers design-focused solutions in consumer durables, home appliances, lighting and mobile phones. It is expected to report a strong performance in the March 2025 quarter. The revenue and net profit are expected to register a year-on-year growth of 147% and 152.8% respectively, according to consensus estimates of analysts compiled by Reuters-Refinitiv. Strong volumes in the mobile segment and improvement in the refrigerator business are expected to support performance during the quarter, according to a sector preview report by Systematix. New customer relationships in the mobile segment, focus on backward integration to increase value addition, higher ODM (original design manufacturer) mix, focus on high-margin segments and healthy return ratios are some of the key strongholds. Foray into the component production business, such as display module assembly followed by camera module assembly will support margins in the future. Avalon Technologies The integrated EMS company reported a strong performance in the March 2025 quarter with revenue and net profit registering year-on-year growth of 58% and 243% respectively. Strong performance in both India and US businesses aided the revenue growth during the quarter. While gross margins contracted by 240 basis points, EBITDA margins surged 410 basis points, supported by operating leverage gains. The management has guided for an 18-20% growth in revenue for 2025-26 with a significant growth expected in the second half of the current financial year. ƒÜ Continued growth from existing clients and improved execution for new clients in the auto, industrial and clean energy segments will support the guidance. A Motilal Oswal report says that the company¡¦s long-term revenue trajectory is strong, aided by the addition of new customers in the US and Indian markets, order inflows from high-growth or high-margin industries, strategic collaborations, which will enhance competence and margin, and its foray into advanced technology segments. Telecom exports lead in overall electronics segment India electronics exports CAGR (2018-19 to 2023-24)
Business Recorder
06-05-2025
- Business
- Business Recorder
India's IPO market loses steam on global market jitters
At least two initial public offerings worth $759 million are expected to be delayed, adding to a growing list of Indian companies deciding to postpone plans for initial public listings due to weak investment sentiment, investment bankers say. Education loan provider Avanse Financial Services and contract drug maker Anthem Biosciences are among companies that will join notable names such as South Korean conglomerate LG Electronics' India unit, to put IPO plans on hold for now, the bankers said. 'There are only select institutional investors coming in at this point given the global uncertainty,' Suraj Krishnaswamy, the managing director of investment banking at Axis Capital, said. 'And India-Pakistan tensions have not helped.' The trend is an indication that global trade frictions and geopolitical tensions have clouded the economic outlook and caused companies to delay their capital raising and investment plans. On Tuesday, the market debut of Indian electric scooter maker Ather Energy will be a gauge of investor appetite. In pre-market activity, its shares have fluctuated around its issue price of 321 rupees ($3.81), indicating a muted start. Avanse Financial and Anthem Biosciences did not respond to Reuters queries seeking comment. 'There are only select institutional investors coming in at this point given the global uncertainty,' Suraj Krishnaswamy, the managing director of investment banking at Axis Capital, said. 'And, India-Pakistan tensions have not helped.' As many as 58 companies with Indian regulatory clearance have not launched their IPOs due to global market disruptions caused by US President Donald Trump's tariffs, which have negatively affected business sentiment and fuelled recession fears. The regulatory clearances of some of these firms will expire over the next few months, PRIME Database Group MD Pranav Haldea said, forcing them to either restart the entire IPO process or seek an extension from India's market regulator. India's benchmarks to open higher; Ather Energy set for market debut India, which was the world's second-largest IPO market last year, has seen a 58% slump in IPOs listed on the main stock exchanges so far this year, according to PRIME Database. The total fundraising on all the listing platforms has seen an 18% drop, LSEG data showed. 'Things are moving slowly, but it is not a complete standstill. In the current scenario, most of the IPOs are in a similar situation,' said an investment banker, who requested anonymity as he was not authorised to speak to the media. Company executives agreed. 'You don't want to file when you do not know how long the volatility will last,' online automobile marketplace Droom's CEO Sandeep Aggarwal said, adding that his firm had decided against filing draft IPO papers by June as it had originally planned. Worried investors Retail investors, having suffered significant losses due to market volatility, are being more cautious with new investments, resulting in a lukewarm reception for this year's IPOs. Ather Energy, which decided to proceed with its $352 million IPO despite the uncertainty, had to cut its target valuation by 44% and lower its offer size though its IPO was fully subscribed. 'Ather can be a risky bet given the current geopolitical issues and high valuation,' Hem Securities senior research analyst Astha Jain said. The unpredictable environment is prompting bankers to urge their prospective IPO clients to adjust their strategies. 'If the issue is important, then you may have to reconsider valuations. If valuation is important, then you have to wait for some more time,' said Bhavesh Shah, the managing director and head of investment banking at Equirus.
