Belrise Industries Drives Toward IPO with Ambitious Fundraising Plan

Belrise Industries has filed for a Rs 2,150 crore IPO, featuring a fresh issue of equity shares. The automotive component manufacturer aims to use Rs 1,618 crore to clear debt, with plans for potential pre-IPO placement reducing the issue size. The company operates internationally, serving various OEMs and generating robust revenue and profits.

Belrise Industries, an automotive component manufacturer, has initiated the process of raising Rs 2,150 crore through an initial public offering (IPO) by filing preliminary papers with the Securities and Exchange Board of India (Sebi).

According to the draft red herring prospectus, the IPO comprises entirely fresh equity shares issuance, with no component for offer for sale. The company is also considering a pre-IPO placement of Rs 430 crore, which may proportionally reduce the IPO size. Their major goal is to use Rs 1,618 crore of the proceeds to alleviate existing debt.

As of June 2024, Belrise Industries had a borrowing total of Rs 2,463 crore. The company, known for producing safety-critical systems and engineering solutions for various vehicles, boasts a significant presence both in India and international markets, establishing collaborations with major OEMs such as Bajaj Auto and Honda Motorcycle. With 15 manufacturing units across eight Indian states, the company reported a 13.7% rise in revenue for FY24. Leading the IPO are Axis Capital, HSBC Securities and Capital Markets (India), Jefferies India, and SBI Capital Markets.

(With inputs from agencies.)