Belrise Industries, a renowned automotive component manufacturing company, recently witnessed an overwhelming response from institutional investors ahead of its initial public offering (IPO). The company managed to secure a whopping ₹645 crore from anchor investors on Tuesday, setting the stage for a successful IPO launch.
The ₹2,150-crore IPO, consisting entirely of fresh issue shares, received an impressive subscription rate of 41.30 times. With an offer size of approximately 17.71 crore shares, the IPO attracted bids for a staggering 731.30 crore shares. The IPO entered the market with a price band of ₹85-90 per share, drawing significant interest from investors across the board.
In terms of subscription numbers, the qualified institutional buyers’ quota was oversubscribed by a whopping 108.35 times, while non-institutional investors, also known as HNIs, subscribed 38.33 times. The retail portion of the IPO saw a subscription rate of 4.27 times, reflecting strong retail investor interest in Belrise Industries.
Belrise Industries Ltd (BIL) offers a diverse range of safety critical systems and engineering solutions for various vehicles, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles. The company’s product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components, and exhaust systems, among others. BIL’s products are designed to be compatible with both electric vehicles and internal combustion engine vehicles, positioning the company well in the evolving electric vehicle market.
With the proceeds from the fresh issue amounting to ₹1,618.13 crore, Belrise Industries plans to utilize the funds for repaying or prepaying certain borrowings and for general corporate purposes. The successful response to the IPO reflects investor confidence in the company’s growth prospects and product offerings, paving the way for a promising future for Belrise Industries in the automotive component manufacturing sector.