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The ₹2,150-crore IPO of Belrise Industries received an overwhelming response from investors, with the issue subscribing 41.3 times on Friday, the final day of bidding. The issue of the
automotive component maker, which opened for subscription between May 21-23, received a massive response from Qualified Institutional Buyers (QIBs) as quota reserved for them was booked by a
whopping 108.35 times.
Belrise’s public issue received bids for over 731 crore shares as against the offer size of 17.70 crore shares, according to the latest data available on the BSE. The portion set aside for
non-institutional investors (NII) was subscribed 38.33 times. The retail investors’ quota was subscribed 4.27 times.
The exchange data showed that Belrise Industries IPO received over 25 lakh applications worth around ₹62,000 crore.
Most brokerages such as Anand Rathi, iDirect, Ventura Securities, GEPL Capital, SMIFS, Eureka Securities, Marwadi Financial Service, BP Wealth, and Choice Broking had given a “subscribe”
rating to the issue, highlighting the company’s strong positioning as a leading automotive component manufacturer. Belrise holds a 24% market share in the two-wheeler metal components
segment as of FY24 and has demonstrated healthy double-digit growth, supported by premiumisation and rising content per vehicle.
Ahead of the IPO, the company raised ₹645 crore from anchor investors on May 20. The company allocated 71,666,665 equity shares at the upper end of the price band at ₹90 per share to anchor
investors. The investors who participated in the anchor book include foreign institutions like BlackRock, Capital Group, M&G, Pinebridge and domestic institutions like ICICI Prudential MF,
HDFC MF, Nippon India MF, ValueQuest, and Bajaj Allianz Life.
Out of the total allocation of 71,666,665 equity shares to the anchor investors, 30,613,484 equity shares were allocated to five domestic mutual funds through a total of 10 schemes, i.e.,
42.72% of the total anchor book size.
The Belrise Industries IPO was entirely a fresh issue of equity shares with no offer-of-sale component, which means all the capital will go to the company. The Maharashtra-based company,
which recently announced the acquisition of H-One India from Japan-based publicly listed H-One Co., had set a price band of ₹85-90 per share, pegging the market capitalisation at around
₹8,009 crore.
The lot size for the IPO was 166 shares and its multiples. The minimum application amount for retail investors was ₹14,110 for one lot.
As per the DRHP filed with the Sebi, the company had reserved 50% of the shares for qualified institutional buyers (QIB), up to 15% for NII, and remaining 35% for retail investors.
Belrise intends to use the net proceeds from the issue towards repayment of certain outstanding borrowings. A part of the capital will be used for general corporate purposes.
This is the second mainboard IPO of FY26, after Ather Energy, a leading electric scooter manufacturer, raised ₹2,981 crore by publicly listing its shares on the domestic bourses earlier this
month. So far this calendar year, 11 mainboard IPOs garnered a total of around ₹19,000 crore via IPO route, with the first 10 listing in the first two months of CY25. The shares of Belrise
Industries are expected to be listed on the BSE and the NSE on May 28, following the allotment of shares on May 26.
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