Belrise Industries IPO Receives 67% Subscription Application By 2nd Day

Mumbai, 22 May 2025 – The initial public offering (IPO) of Belrise Industries continued to witness a tepid response on its second day of bidding, with the overall subscription standing at 67 per cent. Despite the modest investor interest so far, the stock’s grey market premium (GMP) showed a positive trend, rising to ₹17—an 18.89% premium over the IPO’s upper price band of ₹90.

Subscription Breakdown

As per data available from the National Stock Exchange (NSE), the ₹144.89 crore book-built issue opened for public subscription on May 21. By the end of the first day, the IPO had received bids for 11.82 crore shares against the 17.70 crore shares on offer.

The Non-Institutional Investor (NII) category led the demand, with bids exceeding the reserved quota by 1.44 times. In contrast, the retail investor segment saw 48% subscription, while Qualified Institutional Buyers (QIBs) accounted for only 42% of their designated portion.

IPO Structure and Pricing

The IPO is entirely a fresh issue of equity shares, with no offer-for-sale (OFS) component. Shares are being offered in a price band of ₹85 to ₹90 per unit. The minimum lot size is 166 shares, requiring a retail investment of at least ₹14,940 at the upper end of the price range. Investors can apply for up to 13 lots, translating to 2,158 shares or ₹1,94,220 in value.

Grey Market Activity

Market sources tracking unlisted shares noted that the IPO was witnessing active trading in the grey market. On Day 2 of the subscription period, Belrise Industries shares were observed trading at around ₹107, suggesting continued interest in the unofficial market.

Key Dates and Listing Details

The IPO will remain open for subscription until Friday, May 23, 2025. The basis of allotment is expected to be finalised by Monday, May 26, with shares likely to be credited to demat accounts by Tuesday, May 27. Trading on the BSE and NSE is tentatively scheduled to commence on Wednesday, May 28.

Use of Funds

Proceeds from the IPO will primarily be used for repayment or prepayment of certain borrowings and general corporate purposes, according to the company’s filings.

About the Company

Belrise Industries, incorporated in 1996, is an Indian manufacturer of automotive components, offering safety-critical and precision-engineered parts across a wide range of vehicle categories including two-, three-, and four-wheelers, commercial, and agricultural vehicles.

In FY24, the company held a 24 per cent market share in the two-wheeler metal components segment. Belrise’s product range includes chassis systems, suspension and polymer components, body-in-white (BIW) structures, and exhaust systems catering to both electric and internal combustion engine (ICE) vehicles.

The company has formed strategic alliances with 29 global original equipment manufacturers (OEMs), including Bajaj Auto, Hero MotoCorp, Honda, Jaguar Land Rover, and Royal Enfield. Operating across 17 facilities in 10 cities and 9 states, Belrise processes approximately 60,000 tonnes of steel annually.

IPO Lead Managers and Registrar

The issue is being managed by Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets. The registrar to the IPO is MUFG InTime India (formerly known as Link InTime India).

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.