Belrise Industries IPO booked 2x on day two so far over NII push, check latest GMP

The initial public offering (IPO) of Belrise Industries, which began on Wednesday, May 21, will remain open until Friday, May 23. This IPO aims to raise Rs 2,150 crore through a fresh issue of up to 23,88,88,888 equity shares, priced between Rs 85 and Rs 90 each. Investors are required to apply for a minimum of 166 shares. Belrise Industries has been operational since 1988, based in Waluj, Maharashtra, specialising in automotive components such as sheet metal, casting parts, and polymer components.

According to the data, the investors made bids for 34,73,51,680 equity shares, or 1.96 times, compared to the 17,70,58,824 equity shares offered for the subscription by 2 pm on Thursday, May 22, 2025. The issue was overall booked nearly 67 per cent on first day of the bidding.

The allocation for retail investors was subscribed 1.16 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 5.66 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 59 per cent  as of the same time.

In preparation for the IPO, the company secured Rs 645 crore from anchor investors by allocating 7,16,66,665 shares at the higher end of the price band, Rs 90 per share. The grey market premium (GMP) for Belrise Industries is noted at Rs 17 per share, suggesting a potential listing gain of 19 per cent, indicative of positive market sentiment despite mixed bidding environments.

Analysts have expressed optimism about Belrise Industries, citing its strong market presence, attractive valuations, and plans for expansion. For the nine months ending December 31, 2024, the company reported a net profit of Rs 245.47 crore against a revenue of Rs 6,064.76 crore. However, there are concerns regarding its revenue concentration from the Indian market and relatively low export volumes.

Investors shall subscribe to the IPO considering distinguished market leader in the high-growth field of precision sheet metal pressing and fabrication, vertically integrated manufacturing facilities, technology-enabled, innovation driven development & process engineering capabilities, largely EV-agnostic product portfolio and stable fundamentals, said Eureka Stock & Share Broking.

The IPO is structured to reserve 50 per cent of the shares for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail investors. This strategic allocation underscores the company's substantial footing in the automotive component industry, with a market capitalisation close to Rs 8,010 crore.

"We assign 'subscribe' rating to this IPO as company is a distinguished market leader in the high-growth field of precision sheet metal pressing and fabrication within a large and growing automotive component industry. Also, it is available at reasonable valuation as compared to its peers," said Marwadi Shares & Finance.

The financial management of the IPO involves Axis Capital, HSBC Securities & Capital Markets, Jefferies India, and SBI Capital Markets. These institutions are crucial in navigating the complexities of the IPO.

The share allotment process is anticipated to conclude by May 26. Successful applicants will see shares credited to their Demat accounts soon after. The tentative listing date for the shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is projected for May 28.