Belrise Industries IPO: Auto component maker Bellariz Industries Limited’s Initial Public Offer (IPO) has opened to investors from May 21 today and will remain open till May 23. The price band of this IPO has been fixed at Rs ₹ 85 to 90 per share, and investors will have to apply in a minimum 166 shares of lots. The company is planning to raise Rs 2,150 crore through this IPO.
This IPO is a completely fresh equity issue in which a total of 23.89 crore shares will be issued. It does not include any part of the offer for sale (offs).
Brokerage houses opinion on investment
ICICI Direct – Subscribe
The ICICI Direct has given this IPO a “subscribe” rating. The report said that the company has so far recorded a strong growth of two digits and plans to maintain the same speed with new products in the coming time. Due to a strong hold in the two -wheeler segment, the possibilities of the company’s near future seem good.
Anand Rathi – Subscribe to Longstarm Investment
Anand Rathi Broking has also recommended this IPO to “Long Term Subscribe”. According to the report, the evaluation of the company on the upper price band is 26 times according to FY24’s earnings, and its market cap seated ₹ 8,008.9 crore. The company’s EV and commercial vehicle segment have been expected to hopes for increasing presence.
Choice Broking – Subscribe
According to Choice Broking, the company’s income and profits have increased but there is pressure on the margin. However, the plan to increase the vehicle on content and repay the debt is expected to improve profits. The recent acquisition strategy also features the strengthening of product portfolio and increase in sales.
Bajaj Broking – Subscribe to Long Term
Bajaj Broking said that the decrease in interest spending after IPO and recent acquisition will strengthen the company’s four -wheeler sector. Therefore, this IPO has been advised to subscribe from long -term perspective.
Gray Market Premium (GMP)
Before opening the IPO, the shares of Bellariz Industries are trading at a premium of Rs 13 in the unlisted market. Investors consider GMP to be a sign of potential listing gains.
Objective of IPO
The main objective of this IPO is to reduce the debt of the company. The company will use ₹ 1,618.1 crore to repay the loan and the remaining amount will be used for normal corporate works.
financial performance
The company’s net profit declined by 17.5% to Rs 245.5 crore in the first nine months (till December 2024) of FY24, while revenue was recorded at Rs 6,013.4 crore with a slight increase of 0.9%.
Company Profile
Bellarize Industries is an automotive component-making company that provides safety-cultical systems and engineering solutions for two-wheelers, three-wheelers, commercial vehicles and agricultural vehicles. Its major customers are Bajaj, Honda, Hero, Tata Motors, Mahindra, Royal Enfield, Ve Commercial Vehicles and Jaguar Land Rover.
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