Automotive components manufacturer Belrise Industries has submitted its draft papers to the Securities and Exchange Board of India (SEBI) to raise ₹2,150 crore via an initial public offering (IPO). The IPO will consist solely of newly issued equity shares, with no offer-for-sale (OFS) component, as outlined in the draft red herring prospectus (DRHP).
The company may also explore a pre-IPO placement of up to ₹430 crore, which would reduce the total issue size if undertaken. According to the draft papers filed on Tuesday, Belrise plans to allocate ₹1,618 crore from the proceeds toward reducing its debt.
As of June 2024, the company reported total borrowings of ₹2,463 crore. Belrise Industries specializes in the production of automotive components, offering safety-critical systems and engineering solutions for a wide range of vehicles, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
The company operates across both domestic and international markets, with a presence in regions such as Austria, Slovakia, the United Kingdom, Japan, and Thailand. It maintains strong partnerships with major global original equipment manufacturers (OEMs) like Bajaj Auto, Hero MotoCorp, Honda Motorcycle & Scooter India, Royal Enfield Motors, and Jaguar Land Rover.
As of June 2024, Belrise operates 15 manufacturing facilities across eight Indian states. In FY24, the company’s revenue from operations grew 13.7% to ₹7,484.24 crore, compared to ₹6,582.50 crore in FY23. Profit after tax for FY24 was ₹310.88 crore, slightly lower than ₹313.66 crore reported in the previous year.
For the quarter ending June 30, 2024, Belrise recorded revenue of ₹1,780.97 crore, with a profit after tax of ₹71.58 crore. Axis Capital, HSBC Securities and Capital Markets (India) Private Ltd, Jefferies India, and SBI Capital Markets are the lead managers for the IPO.
Belrise Industries, a leading player in the automotive components and systems sector, has established itself as a key contributor to the evolving global mobility ecosystem. The company specializes in designing and manufacturing innovative solutions for electric vehicles (EVs), traditional automobiles, and two-wheelers, ensuring high performance and sustainability.
With a robust portfolio that includes advanced battery systems, e-mobility solutions, and precision engineering products, Belrise is committed to supporting the transition to cleaner and more efficient transportation. Its state-of-the-art manufacturing facilities and emphasis on R&D enable the development of cutting-edge technologies tailored to meet diverse client needs. Guided by a vision for sustainable growth, Belrise Industries continues to enhance its global presence, playing a pivotal role in advancing the future of mobility.
