Belrise Industries mobilises Rs 645 crore from anchor investors ahead of IPO

New Delhi, Automotive components maker Belrise Industries on Tuesday said it has garnered Rs 645 crore from anchor investors a day ahead of its initial share-sale opening for public subscription. BlackRock, Capital Group, ICICI Prudential Mutual Fund (MF), HDFC MF, Nippon India MF, M&G (Prudential), Pinebridge, ValueQuest, and Bajaj Allianz Life are among the investors who participated in the anchor round, according to a circular uploaded on BSE website.

As per the circular, the company allocated 7.16 crore equity shares at Rs 90 apiece, which is also the upper end of the price band, to 27 funds.

The Rs 2,150 crore IPO is entirely a fresh issue of equity shares with no Offer For Sale (OFS) component, according to the Red Herring Prospectus (DRHP).

The issue, with a price band of Rs 85-90 per share, will open for public subscription on May 21 and conclude on May 23.

Going by the prospectus, the company intends to utilise proceeds worth Rs 1,618 crore for the payment of debt. The company had borrowings of close to Rs 2,600 crore in its books as of December 2024.

Belrise Industries is an automotive components manufacturing company based in India, offering a diverse range of safety-critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles. It marketed its products both domestically and internationally, with operations extending to several markets including Austria, Slovakia, the UK, Japan and Thailand. The company has a long-standing relationship with customers, including prominent multinational OEMs such as Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield Motors.

It has 17 manufacturing facilities across 10 states as of December 2024.

On the financial front, the company’s revenue from operations rose 13.7 per cent to Rs 7,484. 24 crore for the financial Year 2024 from Rs 6,582.50 crore for the preceding financial year, and profit after tax was at Rs 310.88 crore for the financial Year 2024 from Rs 313.66 crore in the previous fiscal.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 166 shares and in multiples of 166 shares thereafter.

Axis Capital, HSBC Securities and Capital Markets (India) Private Ltd, Jefferies India and SBI Capital Markets are the book-running lead managers to the issue.