Belrise Industries Limited, one of the leading homegrown producers of safety-critical automotive component. It is hitting the Indian capital markets with a ₹ 21,500 million all-fresh issue IPO on the. Without an offer-for-sale, the promoters are demonstrating great confidence in the future of the company. Specializing in precision sheet metal, as well as fabrication in 2W, 3W, and 4W segments, Belrise is placing a big bet on the country’s robust and growing auto market and EV revolution. Most of the IPO proceeds will be used for deleveraging, allowing for better margins and financial flexibility. As the company gears up to expand its EV-ready product suite and strengthen its relationships with leading OEMs, investors need to ask the important question of whether Belrise is the right bet in this highly competitive market with many leading listed companies.
The Offer
New Issue: The entire Issue is being made through the Fresh Issue. The Company proposes to offer Equity Shares of face value of ₹5 each, priced between ₹ 85 and ₹ 90. aggregating up to ₹ 21,500.00 million
Offer for Sale: Issue does not have an Offer for Sale component. This implies that there are no selling shareholders including the prompters of the company.
Managers: The BRLMs to the Issue are Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and SBI Capital Markets Limited
The Issue is being made through the Book Building Process. The Bid/Issue opens on Wednesday, May 21, 2025, and closes on Friday, May 23, 2025.
The Equity Shares are being offered for listing on the BSE and the NSE with NSE being the Designated Stock Exchange for the purpose of finalizing the Basis of Allotment.
Objects of the Issue
The object to utilise the Net Proceeds from the IPO to predominantly pay its outstanding debt.
Repayment/pre-payment of debt: The largest use of the Net Proceeds is to repay current debt of the Company. An amount of ₹ 16,181.27 million is intended to be utilized for full or partial repayment/prepayment of the company’s outstanding borrowings.
Total consolidated borrowings of ₹ 29,044.92 million that were outstanding as of March 31, 2025, and this repayment plan is for ~60% of such total consolidated borrowings. The objective is to reduce interest-bearing liabilities, cut interest cost, better debt to-equity ratio and release the internal accrual for growing the business to an unending horizon.
General corporate purposes: The remaining Net Proceeds will be used for general corporate purposes and the company’s business needs as determined by management. The precise sum of this shall be established when the Issue Price is determined, but not to exceed 25% of the Gross Proceeds of the Issue shall be applied towards general corporate purposes. Such purposes may include the following but are not limited to:
Industry Overview
Indian automotive components manufacturing industry is one of the key supporting pillars for the overall growth of the Indian automobile industry. The sector caters to supplying various parts and aggregates that are used to manufacture 2Ws, 3Ws, and 4Ws (passenger and commercial vehicles) etc. Belrise Industries Limited is among the companies working within this framework concentrating on safety-critical components like precision sheet metal pressing and fabrication for these diverse vehicle segments. India is well suited as a manufacturing base to target both local and export markets. It is the world’s largest two-wheeler and three-wheeler market in terms of volume.
Size of the Market and Outlook
The global two-wheeler metal components market is valued at ₹ 1,453.85 billion in 2023. It is further estimated to reach ₹ 1,767.28 billion by 2029, 2.9% CAGR between 2024 and 2029. Indian market is expected to grow much faster at 11-13% over the same period.
Underlying Growth Catalysts
The strong growth is underpinned by India’s strong economic tailwinds and a confluence of micro and macro factors. In addition, increased rural demand is also contributing to the trend. Technological breakthroughs are also persistently driving the change in the industry.
The overall Indian Auto industry is projected to grow across segments. Sales of Indian two-wheeler Industry are expected to grow at a CAGR of 6-8% from FY 2025 to FY 2031 and is likely to attain volumes of 29-30 million by FY 2031. The Indian three-wheeler market is also likely to expand at a CAGR of 5-7% during the same 2025E-30E period. The passenger and commercial vehicle market is estimated to grow at a CAGR of 4.5‒6.5% and 3‒5% during the period 2024 to 2029.
EV revolution is accelerating growth
A major driving force for the industry remains the rise of EVs. EV penetration is expected to be significant, and it could be about 33-37% in two-wheeler and above 30-34% in three-wheeler by FY 2031 and by FY2029 respectively. This movement toward electrification is driven by various forces, including concern about the environment, favourable government policies and incentives, consumer attraction to the lower operating costs of EVs, and the rise of charging infrastructure throughout the country. That said, entry barriers are high due to high capital investment, high operating costs and tough competitive environment.
Belrise Industries Limited – A Voyage of Auto Component Manufacturing
Origins and Evolution
Belrise Industries Limited, established on 25th September 1996 is a leading player in the Indian automotive component industry. The company was originally incorporated, in the name of “Badve Engineering Private Limited”. More than a decade later, on January 7, 2008, the company was converted into a public limited company and was rechristened as “Badve Engineering Limited”. Belrise Industries Limited saw yet another name change on August 29, 2022.
Key Business and Operational Presence
Belrise Industries Limited operates as an Auto Components and Aggregates catering to Two-Wheelers (2W), Three-Wheelers (3W) and Four-Wheelers (4W) with a focus on safety-critical parts. Specifically, precision sheet metal pressing & fabrication. The company’s production facilities are at key automotive centres in India.
Key Milestones In The Company’s Journey:
Leadership and Market Associations
Belrise has experienced first generation promoters and professional management.
The Promoters of the company are Shrikant Shankar Badve, Supriya Shrikant Badve and Sumedh Shrikant Badve. Shrikant Shankar Badve, the Managing Director is at the helm of the leadership and shares the vision for the company. Supriya Shrikant Badve is the Promoter and Whole-Time Director of the Company. The experienced management team has helped to build and maintain relationships with customers for duration of the company’s operation.
Its customer base includes leading companies like Bajaj Auto Limited, Honda Motorcycle & Scooter India Private Limited, Hero MotoCorp Limited, Jaguar Land Rover Limited and Royal Enfield Motors Limited. A total of 29 OEMs are services by Belrise Industries Limited worldwide for various vital auto parts.
The company has not undertaken any material acquisitions in the past 10 years.
Competitor Analysis
The Indian automobile-component-manufacturing sector is a competitive one. The competitive position of the companies operating in this market is based on several factors including pricing, manufacturing capabilities, product quality, and reputation. Both domestic and international companies are part of the market.
Major Players in the Market
Belrise Industries Limited operates alongside major listed automotive component firms. Some of them include
The latter are major players in the automotive parts-manufacturing sector, hence, are likely to enjoy some advantages in the form of longer established customers bases, greater market penetration, and wider product ranges.
The competitive dynamics among these players significantly affect the operational climate of all the companies in the industry including Belrise Industries Limited.
Belrise – Strength And Risks
Core Strengths
Challenges and Risks
Belrise faces a highly competitive industry with well capitalised domestic and foreign competitors.
Financial Overview
Belrise Industries Limited has a historical track record of growth and is strategically positioned within the automotive parts industry.
Robust Revenue Expansion
The company has shown a consistent increase in its revenue.
Income from operations increased from ₹53,968.54 million for the financial year 2022 to ₹74,842.41 million for the financial year 2024, thereby displaying a growth of 17.76%. For the nine months ended December 31, 2024, the income from operations was at ₹60,134.26 million, which is 0.93% higher than ₹59,578.76 million for the same period last year. The increase is basically due to the higher sales of automobile parts.
The company’s plans, to grow the content per vehicle via new, high-value, and more complex products, as well as expanding the scale of its EV portfolio. Revenue from products designed for electric vehicles has received significant focus – growing at a 24.60% CAGR during the period FY22-FY24 and rising 33.19% in the nine months ended December 31, 2024, as compared to the nine months of the previous year.
The Dynamics of Profitability.
Belrise has a history of profitability, with a restated profit after tax attributable to owners of 2,618.47 million, 3,136.63 million and 3,108.79 million for the Financial Years 2022, 2023 and 2024 respectively.
The 19.79% growth in PAT of FY23 over FY22, came from an increase in its turnover. The company has a track of good profits but the restated profit after tax for the nine months ended December 31, 2024, is ₹2,454.67 million, showing decline of 17.49% over the ₹2,975.00 million during the nine months ended December 31, 2023. The decline in profit in the nine-month period was primarily due to a higher effective tax rate of 19.88%, compared to a tax rate of 15.18% in the prior nine-month period.
PAT margin for the nine months ended December 31, 2024, was 4.08% compared to 4.99% in the corresponding prior period, and was 4.15%, 4.77% and 4.85% for FY24, FY23 and FY22, respectively.
Key Figures & Tables
Figure: Peer Comparison
| Name of the Company | Revenue from operations (in ₹ million) | Face value (₹) | EPS (Basic) (₹ per share) | EPS (Diluted) (₹ per share) | RoNW (%) | Closing price on May 13, 2025 (₹) | P/E (x) | NAV per equity share (₹) |
| Belrise Industries Limited | 74842.41 | 5 | 4.78 | 13.33 | 35.94 | |||
| Bharat Forge Ltd | 156820.7 | 2 | 20.43 | 20.43 | 13.84 | 1204.1 | 58.9 | 153.9 |
| Uno Minda Ltd | 139103.6 | 2 | 15.36 | 15.34 | 21.68 | 953.95 | 62.1 | 91.71 |
| Motherson Sumi Wiring India Ltd | 83213.6 | 1 | 1.44 | 1.44 | 42.45 | 245.5 | 39.4 | 56.76 |
| JBM Auto Ltd | 47231.86 | 2 | 15.12 | 15.12 | 22.21 | 688.3 | 98.75 | 98.75 |
| Endurance Technologies Ltd | 100520.3 | 10 | 48.38 | 48.38 | 16.24 | 2165.6 | 44.7 | 353.8 |
| Minda Corporation Ltd | 46511 | 2 | 9.65 | 9.49 | 13.99 | 487.05 | 51.3 | 82.84 |
Source: DRHP
Figure: Key Operating & Financial Metrics
| Particulars | 9M FY24 (Dec 31, 2024) | 9M FY23 (Dec 31, 2023) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from Operations (₹ million) | 60134.26 | 59578.76 | 74842.41 | 65824.96 | 53968.54 |
| Revenue Growth (%) | 0.93% | NA | 13.70% | 21.97% | 25.54% |
| EBITDA (₹ million) | 7670.42 | 7600.02 | 9383.63 | 8976.57 | 7634.78 |
| EBITDA Margin (%) | 12.76% | 12.76% | 12.54% | 13.64% | 14.15% |
| Profit After Tax (₹ million) | 2454.67 | 2975 | 3108.79 | 3136.63 | 2618.47 |
| Profit After Tax Margin (%) | 4.08% | 4.99% | 4.15% | 4.77% | 4.85% |
| Return on Average Equity (RoAE) (%) | 9.97% | 13.61% | 14.18% | 16.60% | 16.44% |
| Return on Average Capital Employed (RoACE) (%) | 11.03% | 12.66% | 14.83% | 14.04% | 12.86% |
| Revenue – 2-Wheeler (%) | 64.56% | 59.92% | 63.30% | 65.48% | 73.18% |
| Revenue – 3-Wheeler (%) | 2.92% | 2.04% | 2.17% | 2.09% | 2.65% |
| Revenue – 4-Wheeler (Passenger) (%) | 3.54% | 3.76% | 4.22% | 4.45% | 4.73% |
| Revenue – 4-Wheeler (Commercial) (%) | 5.66% | 4.72% | 5.01% | 5.71% | 4.99% |
| Revenue – Others (Auto) (%) | 1.54% | 4.21% | 4.25% | 2.06% | 2.36% |
| Revenue – Others (Non-Auto) (%) | 21.78% | 25.35% | 21.05% | 20.21% | 12.09% |
| Revenue – India (%) | 75.06% | 73.20% | 76.81% | 77.92% | 86.22% |
| Revenue – International (%) | 24.94% | 26.80% | 23.19% | 22.08% | 13.78% |
| Revenue – Total (%) | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
| Total No. of Manufacturing Plants | 15 | 15 | 15 | 15 | 15 |
Source: DRHP
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