Is Belrise Industries IPO Good or Bad – Detailed Review

Belrise Industries IPO is kicking off its initial public offering, which will be open from May 21, 2025, to May 23, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Belrise Industries IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Belrise Industries IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Belrise Industries IPO Review

This IPO may appeal to investors looking for exposure to India's growing auto components sector, particularly those optimistic about the industry's projected 9-11% CAGR through 2029. The company's established market position, diverse product portfolio, and strategic initiatives to participate in the EV transition offer potential long-term growth opportunities.

For long-term investors who believe in the growth potential of India's automotive sector and the company's ability to navigate the EV transition successfully, Belrise Industries may represent a reasonable investment opportunity. However, more conservative investors should carefully consider the company's declining margins, high debt levels, and concentration risk in the two-wheeler segment. Keep reading to get a deeper insight into the company.

Company Overview of Belrise Industries IPO

Incorporated in 1996, Belrise Industries is a specialist in precision sheet metal pressing and fabrication. In Simpler terms, it is the process of shaping and joining metal pieces to build the core structures used in vehicles like their frames, bodies, and key systems.

With its long years of experience, the company manufactures a wide range of automotive safety-critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles (these include ICE as well as EVs). Currently, the company’s portfolio includes metal chassis systems, polymer components, suspension systems, exhaust systems, and body-in-white components, among others.

Currently, the company has built a diverse product portfolio comprising over 1000 products which accommodates the requirements of different OEMs. As of 31 December 2024, the company has established its presence both domestically and internationally with the customer base currently standing at 29 OEMs. 

Over the years, the company has cultivated long-standing relationships with some prominent players which include Bajaj Auto Limited, Honda Motorcycle & Scooter India Private Limited, Hero MotoCorp Limited, Royal Enfield Motors Limited, and Jaguar Land Rover Limited, among others.

With its 17 manufacturing facilities spread across 10 cities, the company closely works in close proximity to its customers, This enables the company to easily collaborate with the customers and deliver high-end products. Moreover, the company also emphasizes innovation and has a team of 159 members, which enables them to diversify its product offerings

Industry Overview of Belrise Industries IPO

The Indian auto component industry is set to grow steadily over the medium term, supported by rising OEM demand and greater value addition. Between fiscals 2024 and 2029, OEM demand is projected to grow at a 10–12% CAGR, aided by robust production across vehicle segments and price increases by OEMs.

The adoption of the Just-In-Time (JIT) model has improved supply chain efficiency and deepened customer understanding, enabling quicker turnaround and the development of complex, high-quality components. Furthermore, the long-term OEM contracts and stringent validation requirements have also created high entry barriers, strengthening the position of established players.

CRISIL Intelligence expects the industry to grow at a 9–11% CAGR over fiscal 2024–2029, to reach Rs.12,000–13,000 billion. For fiscal 2025, revenue is projected to grow 9–11%, driven by economic recovery and sustained demand from both OEMs and the replacement market.

Financial Overview of Belrise Industries IPO

Source: RHP of the company

A deep dive into the company’s financials reveals an impressive revenue growth soaring from Rs. 5396.85 crores in FY22 to 7484.24 crores in FY24. However, the rising revenues of the company were also accompanied by high raw material costs and the Purchase of stock-in-trade which accounted for Rs.4,684.98 crores and Rs.1282.99 crores respectively. That takes a huge toll on the company’s revenue.

However, the company has reported an increasing net profit of only Rs.261.84 crores in FY22 to Rs. 310.87 crores in FY24. While the company has reported profits, its margins are a bit bleak due to the high operating costs and have noticed a decreasing trend every financial year from 4.85% in FY22 to 4.15% in FY24.

Furthermore, the company is heavily reliant on debt to finance its expansion activities and operations. During FY24, the long-term and short-term borrowings were reported at Rs.1421.77 crores and Rs.1019.2 crore respectively. While these borrowings are used to fuel the company's business, they can burden the company with repayments.

In FY24, the company reported a Return on average equity of 14.18% which is slightly below the average, the reason being the low margins of the company. Similarly, the Return on average capital employed was reported at 14.83% which is a bit low considering the company's low margins and high borrowings.

In the nine months of FY25, the company generated a revenue of Rs.6012.42 crores and a net profit of Rs.245.46 crores with a margin of 4.08%. While these figures give you an overall glimpse of FY25, a complete picture can only be painted after the company reports the entire year's results.

Strengths and Risks of Belrise Industries IPO

Let’s dive into the strengths and weaknesses to assess if the Belrise Industries IPO is good or bad for investors

Strengths 

• As of March 31, 2024, the company holds a significant position in the Indian two-wheeler metal components market, ranking among the top three players with a 24% market share in terms of revenue.

• The company employs a collaborative business model, with manufacturing facilities strategically located near key customers. Dedicated production lines are reserved for specific clients, enabling a reliable long-term supply chain and fostering strong, enduring customer relationships.

•  With a largely EV-agnostic product portfolio, the company is well-positioned to scale alongside the rapidly growing electric vehicle segment in India, ensuring relevance across both traditional and emerging vehicle platforms.

• According to a CRISIL Report, original equipment manufacturers (OEMs) favor multi-product vendors for their ability to maintain consistent quality and streamline supply chains. This industry preference presents a significant barrier to entry for new players, strengthening the company’s competitive position in the market.

Risks

• The company sources key raw materials such as sheet metal, mild steel wire, tubes, and polymers from third-party suppliers. Any price volatility or supply disruption may affect its production, operating performance, and financial stability.

• The company operates in a highly competitive environment where OEMs routinely push for annual price reductions. This industry trend forces the company to cut costs while maintaining high quality, which can lead to margin compression and reduced profitability.

• A significant portion of the company’s revenue, ranging from around 60 percent to over 70 percent in recent years, comes from two-wheeler vehicle components. Any downturn in two-wheeler demand or shift in market dynamics could materially impact its revenue and growth.

• The company has borrowed ?15,668.52 million for capital expansion as of March 31, 2025. Delays in launching new facilities or difficulties in loan repayment could negatively impact its financial condition, cash flows, and long-term prospects.

Strategies of Belrise Industries IPO

• The company is focused on boosting its value contribution to each vehicle by introducing high-value, complex components and integrated systems such as full chassis assemblies.

• To align with India’s growing shift toward cleaner mobility, the company is investing in the development of EV components such as hub motors, motor controllers, and chargers, with a new facility expected to be operational by FY26. 

•  The company is expanding across vehicle segments and geographies by partnering with global OEMs, increasing exports to clients like Jaguar Land Rover, and targeting new markets in Europe and North America through strategic acquisitions.

Belrise Industries IPO Vs Peers

The below image gives a comparison of Belrise Industries with its listed peers.

Source: RHP of the company

Belrise Industries Limited stands as a mid-tier player in comparison to its listed peers in the auto component sector. With revenue from operations of Rs.7484.24 crores, Belrise is smaller than most of the large players like Bharat Forge and Uno Minda, but ahead of peers such as JBM Auto and Minda Corporation.

Its earnings per share (EPS) stands at Rs.4.78, which is the second lowest among peers only above Motherson Sumi Wiring India Ltd (?1.44), and highlights a relatively lower profitability per share. Furthermore, an ROE of 13..33% indicates that the company has given the lowest returns to its shareholders compared to its peers.

Lastly, At the upper IPO price band of Rs.90, Belrise Industries is valued at a P/E of 18.8, based on its FY24 EPS of Rs.4.78. This multiple is not particularly attractive when compared to several listed peers that command similar or slightly higher P/Es while delivering significantly better earnings performance.

Objectives of Belrise Industries IPO 

The fresh issue of the IPO will be used by the company for the following purposes:

• An estimated amount of Rs. 1618.12 Crores raised from the IPO is said to be used to fully or partially repay, pay certain outstanding borrowings.

• General corporate purposes.

Belrise Industries IPO Details

IPO Dates

Belrise Industries IPO will be open for subscription from May 21, 2025, to May 22, 2023. The allotment of shares to investors will take place on May 26, 2025, and the company will be listed on the NSE and BSE on May 28, 2025.

IPO Issue Price

Belrise Industries Limited is offering its shares in the price band of Rs.85 to Rs.90 apiece. This means you would require an investment of Rs. 14,940 per lot (166 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Belrise Industries is issuing a total of 23,88,88,888 shares, which is worth Rs.2,150 crores which is completely offered through a fresh issue.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on May 26, 2025, through the registrar's website: MUFG Intime India Private Limited, BSE, NSE, or their stockbroker platform.

IPO Listing Date

The shares of Belrise Industries Limited will be listed on the NSE and BSE on May 28, 2025.

IPO Application Link

Open a demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Belrise Industries IPO