Belrise Industries is launching its Initial Public Offering (IPO) with a price range set between ₹85 and ₹90 for each share. Each share has a face value of ₹10.
The IPO will open for investors to subscribe on Wednesday, May 21, and will close on Friday, May 23. Before this, on Tuesday, May 20, some shares will be allocated to anchor investors (big investors who buy before the IPO opens to the public).
The lowest price of ₹85 is 17 times the face value, and the highest price of ₹90 is 18 times the face value of the shares. This means the company values its shares based on its earnings per share (EPS) for the year 2024, with a price-to-earnings ratio of about 17.8 to 18.8 times.
Read More: Jubilant Foodworks Reports Over 2% Stock Decline Following Q4 Profit Drop..
Investors can buy shares in lots of 166 shares and in multiples of 166 after that.
Out of the total shares being offered:
- Up to 50% is reserved for qualified institutional buyers (QIBs),
- At least 15% is for non-institutional investors (like high-net-worth individuals),
- And at least 35% is for retail investors (individual small investors).
The final list of who gets the shares (allotment) will be decided on Monday, May 26. Refunds for those who don’t get shares will be issued on Tuesday, May 27, and the shares will also be credited to investors’ accounts that day. The shares are expected to start trading on the stock exchanges (BSE and NSE) from Wednesday, May 28.
About Belrise Industries:
Belrise Industries makes important parts for vehicles, including sheet metal parts, casting parts, polymer components, suspension systems, and mirrors. These parts are used in two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
They work with many well-known companies like Bajaj, Honda, Hero, Jaguar Land Rover, Royal Enfield, Tata Motors, Mahindra, and others.
As of June 30, 2024, Belrise serves 27 original equipment manufacturers (OEMs) worldwide and has 15 manufacturing plants across nine cities in eight states of India.
Also See: Gensol Engineering Stock Jumps Despite Insolvency Filing — What Investors Aren’t Saying
Comparing with Other Companies:
Some similar companies in the market have higher price-to-earnings (P/E) ratios, like Bharat Forge (58.94), Uno Minda (62.19), and Motherson Sumi Wiring India (39.42), which shows Belrise’s IPO is priced relatively lower.
IPO Details:
The total IPO is valued at ₹2,150 crore with about 23.88 crore shares being offered. The money raised will be used to pay off loans and for general business purposes.
The banks managing the IPO are Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets. Link Intime India is the registrar handling the process.
