Belrise Industries Ltd., an automotive component manufacturing company, has submitted draft papers for an initial public offering with the Securities and Exchange Board of India. The Rs 2,150-crore IPO consists of a fresh issue of shares of face value of Rs 5 and no offer for sale component, according to the draft red herring prospectus.
Proceeds from the fresh issue to the extent of Rs 1,618 crore will be used to pare debt. The rest will be deployed for general corporate purposes.
As on Sept. 30, 2024, the company's total outstanding debt stood at Rs 2,588.3 crore on a consolidated basis, which includes non-fund based borrowings and accrued interest on borrowings.
The Belrise Industries IPO will be managed by Axis Capital Ltd., HSBC Securities and Capital Markets (India) Pvt., Jefferies India Pvt. and SBI Capital Markets Ltd.
Aurangabad-based Belrise Industries offers a range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles, according to the DRHP. The product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components and exhaust systems, among others.
The company was formerly known as Badve Engineering Ltd.
It specialises in precision sheet metal pressing and fabrication and is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of fiscal 2024, in terms of revenue, the prospectus said citing a Crisil report.
Its clients include Bajaj Auto Ltd., Honda Motorcycle & Scooter India Pvt., Hero MotoCorp Ltd., Jaguar Land Rover Ltd. and Royal Enfield Motors Ltd., among others. As of June 30, the company serviced a total of 27 original equipment manufacturers globally, and operated 15 manufacturing facilities across nine cities in eight state.
Belrise Industries reported revenue from operations of Rs 7,484 crore and net profit of Rs 310 crore in financial year 2024. Domestic sales accounted for 77% of the income, compared to 23% share of exports. Operating margin was at 12.54%.
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