Belrise Industries IPO Day 1: Issue subscribed 37% so far; should you subscribe?

Belrise Industries IPO: Belrise Industries Limited, a prominent auto component manufacturer with a 24 per cent market share catering to both traditional and electric vehicles opened its Initial Public Offering (IPO) for subscription on Wednesday, May 21. The share sell window process will be closed on May 23. On the first day bidding process, the issue booked 0.32 times so far.

Through this IPO, Belrise Industries aims to raise Rs 2,150 crore by issuing approximately 23.89 crore fresh equity shares, which is fresh issue, as neither the promoters nor existing investors are offloading their shares via an Offer for Sale (OFS).

Belrise Industries IPO: Price band

The company has set the price band for the IPO between Rs 85 and Rs 90 per share.

Retail investors can bid for a minimum of 166 shares in a one lot. At the upper end of the price band (Rs 90), the minimum investment amounts to Rs 14,940. Such investors can apply for up to 13 lots, totaling 2,158 shares, which translates to a maximum investment of Rs 1,94,220 at the upper band.

At the last count, the issue subscribed 0.32 times on Wednesday so far, with receiving bids of 0.28 times in the retail category, 0.41 times in the QIB category, and 0.54 times in the NII category. 

Belrise Industries IPO: Allocation

The company has reserved 50 per cent of the issue for Qualified Institutional Buyers (QIBs), 35 per cent for retail individual investors, and the remaining 15 per cent for Non-Institutional Investors (NIIs).

What does Belrise Industries do?

Since 1996, Belrise Industries is a key player in the Indian auto components sector that manufactures parts for two-wheelers, four-wheelers, commercial vehicles, and electric vehicles. The company holds a 24 per cent market share in domestic market’s two-wheeler metal components segment, ranking among the top three companies in this space.

The firm has forged partnerships with several leading automobile manufacturers such as Bajaj Auto, Hero MotoCorp, Honda Motorcycle & Scooter India, Royal Enfield Motors, and Jaguar Land Rover.