The ₹2,150 crore Belrise Industries IPO opened for subscription on May 21, 2025, with a price band of ₹85 to ₹90 per share. Known previously as Badve Engineering, the company is a major auto component supplier with a long list of top-tier clients like Bajaj Auto, Tata Motors, Mahindra, Hero, Royal Enfield, and Jaguar Land Rover.
On Day 1, the IPO saw 14% overall subscription. That might sound low, but early-day figures don’t always reflect outcomes. Retail interest picked up slowly, while non-institutional investors (NIIs) led the first-day buzz.
Let’s break it down: what does Belrise do, where is this ₹2,150 crore going, and what should investors know?
What does Belrise Industries do?
Belrise Industries manufactures automotive systems and safety-critical parts like metal chassis systems, suspension units, polymer parts, and exhaust systems. These components are used in two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and even agri-vehicles.
The company serves 27 OEMs (Original Equipment Manufacturers) and operates 15 manufacturing plants across nine cities in India as of June 2024. Importantly, Belrise claims its products are EV-agnostic, which means they can work across both traditional and electric vehicles, a future-proof angle investors might want to consider.
Also read: Dixon Technologies Q4 result analysis
IPO details at a glance
Here’s a quick look at the core details:
| Particulars | Details |
| IPO Size | ₹2,150 crore |
| Issue Type | 100% Fresh Issue |
| Price Band | ₹85 to ₹90 per share |
| Lot Size (Retail) | 166 shares (₹14,110 to ₹14,940) |
| Retail Max Investment | 13 lots or ₹1,94,220 |
| Tentative Allotment Date | May 26, 2025 |
| Tentative Listing Date | May 28, 2025 |
| Book Running Lead Managers | Axis Capital, Jefferies, HSBC, SBI |
| Registrar | Link Intime India Pvt Ltd |
Subscription status on Day 1
As of the end of Day 1, the IPO was subscribed 14% in total. Here’s the category-wise breakdown:
| Investor Category | Subscription (%) |
| QIB | ~0.2% |
| NII (HNI) | ~25% |
| Retail Investors | ~17% |
NIIs led the charge early on, but retail participation is expected to pick up closer to the cut-off time on May 23. With a grey market premium (GMP) of ₹10–15, early signs suggest a possible listing around ₹100 per share, roughly a 10–15% premium over the issue price.
Also read: DLF shares rise after strong Q4 FY25
Where will the IPO proceeds go
Out of the total ₹2,150 crore being raised, Belrise plans to use ₹1,618 crore for debt repayment, which is quite significant considering the company had a total borrowing of ₹2,599 crore as of December 2024.
By reducing debt, the company expects to save around ₹150 crore annually in interest costs. That could lead to a boost of ₹110 crore in profit after tax (PAT), based on conservative estimates.
The rest of the funds will go towards general corporate purposes.
Financial performance and valuation
Let’s look at the key financials of Belrise over the last few years:
| Metric | FY22 | FY23 | FY24 |
| Revenue (₹ crore) | 5,411 | 6,621 | 7,556 |
| Profit After Tax (₹ cr) | 307 | 357 | 353 |
| Net Worth (₹ cr) | 1,734 | 2,038 | 2,332 |
| Total Borrowing (₹ cr) | 2,598 | 2,271 | 2,441 |
The company’s revenue has grown steadily, but its profit has remained relatively flat. Post-IPO, with reduced debt and improved margins, analysts expect the company to target a PAT of around ₹500 crore by FY27.
Post-IPO, the P/E rises slightly due to equity dilution, but still stays below peers in the auto components sector, which trade at around 20–22x earnings.
You may also read: Delhivery jumps 10% after Q4 results
What are analysts saying?
- ICICI Direct has given the IPO a “Subscribe” rating. They expect the debt repayment to bring down costs and increase PAT over the next few years. The company is expected to be well-positioned in the EV transition phase due to its agnostic component portfolio.
- Others also note that a ₹500 crore PAT target by FY27 would mean the stock is priced attractively at about 16x forward earnings.
Final thoughts
The slow Day 1 response to the Belrise Industries IPO isn’t unusual. Many investors wait till the final day to apply. What matters more is the underlying business and future growth.
Belrise has a strong customer base, is diversified across vehicle types, and is preparing for the EV shift. With debt set to reduce and margins likely to improve, the IPO could be a long-term opportunity.
If you’re a retail investor, the lot size (₹14,940) is affordable, and the fundamentals seem sound. However, like with any IPO, don’t go all-in; look at it as a small allocation within a diversified portfolio.
