The initial public offering (IPO) of Belrise Industries, a prominent automotive component manufacturer, concluded with a robust overall subscription of 4.9 times on its third and final day, reflecting strong investor interest across categories.
Non-Institutional Investors (NIIs) demonstrated significant enthusiasm, oversubscribing their allocated portion by 9 times. Retail investors also showed active participation, subscribing 1.54 times, while Qualified Institutional Buyers (QIBs) subscribed to 69% of their reserved shares by the end of the second day.
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The Grey Market Premium (GMP) for Belrise Industries' shares has risen to ₹23, indicating positive market sentiment and expectations for a strong listing.
IPO Details:
Issue Size: ₹2,150 crore, entirely a fresh issue with no offer-for-sale component.
Utilization of Proceeds: ₹1,618 crore earmarked for debt reduction; the remainder for general corporate purposes.
Company Background: Belrise Industries, formerly known as Badve Engineering Ltd., specializes in precision sheet metal pressing and fabrication. It holds a 24% market share in India's two-wheeler metal components segment and serves major OEMs like Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover, and Royal Enfield Motors.
Financials: In FY24, the company reported revenue of ₹7,484 crore and a net profit of ₹310 crore.
With the IPO now closed, investors await the allotment results and the company's listing on the NSE and BSE. The strong subscription figures and rising GMP suggest a favorable debut in the secondary market.