IPO Listing Date
Belrise Industries is ready to make its market entry today, May 28, on both the BSE and NSE, after successfully concluding its ₹2,150 crore initial public offering (IPO). The IPO, which was open for subscription from May 21 to May 23, witnessed a humongous response from investors, particularly institutional investors.
High Grey Market Buzz Prior to Listing
Investors are keenly watching the Grey Market Premium (GMP)—a non official metric indicative of market perception—before the listing. Currently, the GMP of Belrise Industries shows a value of ₹24 per share which suggests that the listing price may be ₹114 which is about 25% above the upper band of the price at ₹90.
This positive mood is supported by strong demand across all categories of investors and the firm's strong positioning in the auto component space.
IPO Subscription Summary
The IPO of Belrise Industries received impressive interest, with 41.30 times overall oversubscription. Here's the summary:
- Retail Investors: 4.27 times
- Qualified Institutional Buyers (QIBs): 108.35 times
- Non-Institutional Investors (NIIs): 38.33 times
Such high interest, especially from institutional buyers, tends to indicate optimism about the company's growth potential.
Why Belrise Industries Stands Out
Analysts credit the optimistic outlook to Belrise's diversified product line, serving electric vehicles (EVs) and commercial vehicles. Belrise has a 24% market share in India's two-wheeler metal component market, indicating a leadership position in its space.
The new capital mobilized under this IPO — 23.89 crore new equity shares priced at ₹85–₹90 — will probably go towards business growth and expansion initiatives.
Experts across different brokerage houses point to Belrise's steady revenue growth, strategic tie-ups with OEMs, and its attractiveness as a reasonably priced participant in the booming auto manufacturing industry.
Expert Insights
"We anticipate Belrise Industries to list at a 20–25% premium to its issue price. The issue has received good demand and is reasonably priced, which would ensure a good listing,"
said Mahesh M. Ojha, AVP - Research & Business Development, Hensex Securities.
“Even for this firm, the advantages provided by fundamentals like diverse customers and the firm’s stronghold in the two-wheeler segment, complement the firm’s strategic benefits,”
was noted by Prashanth Tapse, Sr. Vice President – Research at Mehta Equities.
Final Thoughts
With the prevailing GMP trend so strong, good subscription numbers, and interest from investors, Belrise Industries shares are likely to make a strong start in today's trading session. Market participants, particularly those following the auto components and EV spaces, will closely follow the listing.
Disclaimer: The article is for general information purposes only. Investors should approach certified financial planners before making a decision to invest.
