Auto component maker Belrise Industries files for Rs 2,150 crore IPO

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Automotive component maker Belrise Industries has filed preliminary papers with capital markets regulator Sebi to raise Rs 2,150 crore through an initial public offering (IPO).

The IPO is entirely a fresh issue of equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP).

The company may consider raising up to Rs 430 crore through a pre-IPO placement. If this is carried out, the issue size will be reduced.

As per the draft papers filed on Tuesday, the company intends to utilise proceeds worth Rs 1,618 crore for payment of debt.

The company has a borrowing of Rs 2,463 crore in its books as of June 2024.

Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles.

As of June 2024, it marketed its products both domestically and internationally, with operations extending to several markets, including Austria, Slovakia, the UK, Japan and Thailand.

The company has a long-standing relationship with customers, including prominent multinational OEMs (original equipment manufacturers) such as Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield Motors.

It has 15 manufacturing facilities in eight states as of June 30, 2024.

On the financial front, the company's revenue from operations rose 13.7 per cent to Rs 7,484.24 crore in FY24, from Rs 6,582.50 crore in the preceding financial year. Profit after tax was at Rs 310.88 crore in FY24 from Rs 313.66 crore in the previous fiscal.

For the three months ended June 30, 2024, revenue from operations stood at Rs 1,780.97 crore and profit after tax stood at Rs 71.58 crore.

Axis Capital, HSBC Securities and Capital Markets (India) Private Ltd, Jefferies India and SBI Capital Markets are the book-running lead managers to the issue.