IPO Report - Belrise Industries Ltd By Choice Broking Ltd
Salient features of the IPO:
* Belrise Industries Ltd. (BIL), an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions, is coming up with an IPO to raise Rs. 2,150cr which opens on 21st May and closes on 23rd May 2025. The price band is Rs. 85 - 90 per share.
* The IPO comprises entirely fresh issue (Rs. 2,150cr). From the fresh issue net proceeds, the company will be utilizing Rs. 1,618.27cr for repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company and residual proceeds will be used for general corporate purposes.
* Consequently, post-IPO, the P&PG and public shareholders will have 73.01% and 26.99% stake in the company, respectively.
Key competitive strengths:
* Distinguished market leader in sheet metal pressing and fabrication within automotive component industry
* Vertically integrated manufacturing facilities offering diverse range of products
* Technology-enabled, innovation driven development and process engineering capabilities
* Longstanding customer relationships developed through years of collaboration and value addition
* Largely EV-agnostic product portfolio, strategically positioned to scale in tandem with burgeoning electric vehicle market in India
Risk and concerns:
* General slowdown in the global economic activities
* Unfavorable government policies & regulations
* Unfavorable product-mix
* Volatility in key raw material prices
* Difficulty in maintaining profitability and return ratios
* Competition
Below are the key highlights of the company:
* India is the largest motorized two-wheeler (2W) market by volume in the world, with domestic sales of 1.84 cr units in FY24. Domestic 2W market is expected to continue its growth momentum over the long-term horizon led by the positive microeconomic and macroeconomic environment, favourable rural demand, premiumization, intermittent launches, shrinking replacement cycle and continued support from financers.
* In the last five years, the electrification within the 2W market has helped grow the industry sales. In Apr-Dec period of FY25, EV penetration reached 5.5% and EV volumes reached 0.084cr units.
* Incorporated in 1996, BIL is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, fourwheelers, commercial vehicles and agri-vehicles. It’s product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components and exhaust systems, battery containers and steering columns, among others. It’s product portfolio is designed to meet the varying requirements of OEMs across multiple vehicle types.
* It’s products are largely agnostic to vehicle powertrain types, reflecting it’s ability in catering to both electric vehicles and internal combustion engine vehicles, thus positioning it favorably to adapt to the growing electric vehicle market. As of December 31, 2024, the company market it’s products both domestically and internationally, with operations extending to several key global markets including Austria, Slovakia, the United Kingdom, Japan and Thailand.
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SEBI Registration no.: INZ 000160131
