Last Updated:
Belrise Industries Ltd debuted on the stock market with a 9.44% premium at Rs 98.5 on BSE, but shares soon declined to Rs 92.7.
Belrise Industries IPO listing.
Belrise Industries IPO Listing: Belrise Industries Ltd on Wednesday made a stock market debut with a muted listing. Shares of the company were listed on stock exchanges at a premium of 9.44 per cent at Rs 98.5 apiece on the BSE, compared with the IPO issue price of Rs 90. However, the shares started declining soon after listing and hit its day’s low of Rs 92.7 as of 10:15 am.
On the NSE, the shares listed at a gain of 11.11 per cent at Rs 100 apiece.
Should You Buy, Sell Or Hold?
According to a market expert, “The Belrise Industries IPO’s muted listing is a disappointment for investors, especially as it declined sharply immediately after the listing. Investors are advised to exercise caution and book profit as of now. If someone wants to stay invested, it might yield gain only in the long term.”
The IPO’s GMP available at various portals showed as high as 30 per cent listing gains for investors. Retail investors applied for the IPO going by these GMP figures. “It is, therefore, reiterated to carefully consider a company’s fundamentals before applying for the IPO, rather looking at just the GMP.”
Most brokerages had suggested applying for the IPO for ‘long term’.
Bajaj Broking in its IPO note recommended ‘subscribe for long term’ for Belrise Industries IPO, saying the company is a leading player in precision sheet metal pressing and fabrication, holding a 24 per cent market share in India’s two-wheeler metal components segment as of FY2024.
On the final day of bidding on May 23, the Belrise Industries IPO received a 43.14 times subscription, with a bidding of 7,21,33,41,590 shares against the offered shares of 16,72,22,223. The retail and NII participation stood at 4.52 times and 40.58 times, respectively. Its qualified institutional buyer (QIB) category got a 112.63 times subscription.
Belrise Industries raised Rs 2,150.00 crores through this bookbuilding IPO. Following Ather Energy and Borana Weaves, Belrise Industries is the third company in the mainboard segment to launch an IPO in FY26.
The company, based in Pune, set a price band of Rs 85-90 per share. The public offer consists entirely of a fresh issue of 23.89 crore equity shares, valued at Rs 2,150 crores. There is no offer-for-sale component in this IPO.
In the allocation of shares, 50% is reserved for qualified institutional bidders, 15% for non-institutional investors, and 35% for retail investors.
The primary objective of this IPO is to reduce the company’s debt. Out of the net proceeds, Rs 1,618.1 crore will be used to repay debt, while the rest will go towards general corporate purposes.
- First Published:
