Belrise Industries IPO Sees Slow Subscription, Grey Market Premium Rises By 19%

Mumbai: Belrise Industries’ Rs 144.89 crore IPO opened for subscription on May 21, 2025. However, it received a low response on Day 2. According to data from NSE, only 67 per cent of the total shares were subscribed. Investors placed bids for 11.82 crore shares, while 17.70 crore shares were available.

Among all categories, Non-Institutional Investors (NIIs) showed the most interest. Their portion was subscribed 1.44 times. In contrast, retail investors subscribed only 48 per cent of their share. Qualified Institutional Buyers (QIBs) subscribed just 42 per cent.

IPO Details and Price Band

Belrise Industries is offering only a fresh issue of shares. There is no offer-for-sale component. The price band for the IPO is set between Rs 85 to Rs 90 per share. One lot has 166 shares. So, a retail investor needs Rs 14,940 to buy one lot at the upper price.

Retail investors can apply for up to 13 lots. This would mean a maximum investment of Rs 1,94,220.

Strong Grey Market Interest

Despite low subscription numbers, the grey market is showing strong demand. On Day 2, the grey market premium (GMP) for Belrise shares rose to Rs 17. This means the shares are trading at Rs 107 in the unofficial market. That is 18.89 per cent higher than the issue price.

Analysts Give Positive Reviews

Several analysts have given the IPO a “Subscribe” rating. They see long-term value in the company. Geojit, Choice Broking, ICICI Securities, and Anand Rathi all recommend subscribing. Geojit says the stock looks fairly priced at a P/E of 25.8x based on FY24 earnings.

Analysts like the company’s strong presence in the EV and IC engine segments, its market share, and its future growth plans.

Company Plans and Listing Date

The IPO will close on May 23, 2025. The basis of allotment will be announced on May 26. Shares will be credited to demat accounts on May 27. The stock is expected to list on BSE and NSE on May 28, 2025.

The funds raised will be used to repay loans and for general corporate use.

About Belrise Industries

Belrise Industries was founded in 1996. It makes auto parts for two-wheelers, cars, and commercial vehicles. It has a 24 per cent market share in two-wheeler metal components. The company works with major brands like Bajaj Auto, Honda, and Royal Enfield. It operates 17 plants in 10 cities across 9 states in India.