Pune-based automotive component manufacturing company, Belrise Industries limited has filed the draft papers with SEBI to raise Rs 2,150 crore through an initial public offering. The IPO consists of only a fresh issue which means that all money, net of expenses, will come directly to the company.
Key Details of the IPO:
- Issue Size: Rs 2,150 crore.
- Fresh Issue: Entire IPO consists of fresh issue; no offer-for-sale.
- Pre-IPO Placement: Company may raise Rs 430 crore before IPO launch, reducing the fresh issue size accordingly.
- Utilization of Funds:
- Rs 1,618.08 crore to reduce debt (62.52% of total borrowings).
- Remaining funds for general corporate purposes.
Business Overview:
Belrise Industries was incorporated in the year 1996 and is amongst the leading players in precision sheet metal pressing and fabrication for the automotive sector. It enjoys a market share of 24% in the two-wheeler metal components market in India. Belrise caters to all major OEMs in the industry, such as Bajaj Auto, Honda, Hero MotoCorp, and Royal Enfield.
Financial Performance:
- FY24 Revenue: Rs 7,484.2 crore, a 13.7% YoY increase, with exports contributing 76%.
- Net Profit: Rs 310.9 crore, down 0.9% due to weaker operating margins.
- EBITDA Margin: 12.35%, a drop of 95 bps despite EBITDA growth of 5.6%.
- Q1FY25 Performance: Rs 71.6 crore profit on Rs 1,781 crore revenue.
Belrise’s IPO will help improve its debt-equity ratio and strengthen its financial position while enabling the company to pursue further growth in India and abroad.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
