Belrise Industries Limited, formerly known as Badve Engineering Limited, is all set to launch its Initial Public Offering (IPO). The company is one of the major suppliers of components for the automobile industry. In this blog, we explore more about the company, the sector, risks, financials, and other details of the IPO. So, let’s deep dive into the Belrise Industries IPO.
About the Company
Incorporated in 1996 and headquartered in Aurangabad, Maharashtra, Belrise Industries Limited is one of India’s largest manufacturers of automotive systems and components. The company’s product portfolio includes:
- Precision sheet metal pressing and fabrication
- Suspension and chassis components
- Aluminium die casting and machined parts
- EV-focused assemblies and modules
- Surface treatment and paint
As of March 31, 2025, Belrise operates 17 manufacturing facilities across 10 cities in 9 Indian states, with 7 of them located in Maharashtra.
The company’s major customers include Ashok Leyland, Bajaj Auto, Hero MotoCorp, Honda, Jaguar Land Rover, Mahindra & Mahindra, Tata Motors, and Eicher.
Sector Overview
Promoters and Their Experience
The company is promoted by:
- Shrikant Shankar Badve – 81.42% stake
- Supriya Shrikant Badve – 6.66%
- Sumedh Shrikant Badve – 2.23%
Together, the promoters hold 90.30% of the company’s pre-issue paid-up capital. Mr. Shrikant Badve has over two decades of experience in the automotive components industry and has steered the company from a regional manufacturer to a national player with international clients.
Objectives of the IPO
Belrise Industries plans to raise Rs 2,150 from the IPO. This is going to be a Fresh issue, and the funds will be utilized for the following objectives.
- Rs. 1,618.13 crore will be used to repay or prepay outstanding borrowings.
- The remaining funds (up to 25%) will be utilized for general corporate purposes, including capital expenditure, working capital, branding, R&D, and contingencies.
The reduction will help the company to reduce the leverage ratios and free up the capital for growth initiatives.
Belrise Industries IPO Details
| IPO Name | Belrise Industries |
| IPO Date | May 21, 2025 to May 23, 2025 |
| Issue Price Band | ₹85 to ₹90 per share |
| Lot Size | 166 Shares |
| Listing At | NSE & BSE |
| Allotment Date | May 26, 2025 |
| Listing Date | May 28, 2025 |
| Retail (Min) lot & Amount | 1 lot & ₹14,940 |
| Retail (Max) lots & Amount | 13 lots & ₹1,94,220 |
| Small-HNI (Min) lots & Amount | 14 lots & ₹2,09,160 |
| Small -HNI (Max) lots & Amount | 66 lots & ₹9,86,040 |
| Big-HNI (Min) lots & Amount | 67 lots & ₹10,00,980 |
Financial Snapshot
| Particulars (Rs. in million) | FY22 | FY23 | FY24 |
| Revenue from Operations | 53,968.5 | 65,837.4 | 74,842.4 |
| EBITDA | 7,634.8 | 8,720.1 | 9,383.6 |
| Profit After Tax | 2,618.5 | 3,178.2 | 3,108.8 |
| EBITDA Margin (%) | 14.15% | 13.24% | 12.54% |
| PAT Margin (%) | 4.85% | 4.83% | 4.15% |
| ROCE (%) | 12.86% | 13.47% | 14.83% |
| ROE (%) | 16.44% | 15.97% | 14.18% |
Key Financial Ratios (FY24)
| Ratio | FY24 |
| Current Ratio | 1.52 |
| Debt to Equity Ratio | 1.03 |
| Debt Service Coverage Ratio | 1.59 |
| Inventory Turnover Ratio | 12.65 |
| Trade Receivables Turnover Ratio | 5.61 |
| Net Profit Margin (%) | 4.15% |
The financial ratios reflect a moderately leveraged by operationally efficient company. Reduction in debt post-IPO is expected to improve liquidity for the company.
Key Insights Based on Financials
- Stable Revenue Growth: Revenue has grown at a CAGR of 17% from FY 22 to FY 24.
- Healthy Profitability: Although PAT Margin has dropped slightly in FY 24, absolute profits have remained stable.
EBITDA Performance: EBITDA margin has slightly dipped, indicating rising raw material or logistics costs, but overall EBITDA numbers look healthy.
Risk Factors
- Customer Concentration: A large part of the revenues comes from a few customers
- Geographic Risk: 7 out of 17 plants are in Maharashtra—any regional disruption could significantly impact operations.
- Raw Material Volatility: Prices of steel and aluminum can affect margins.
- EV Transition Risk: Delay in EV adoption could affect projected growth in EV segment components.
- High Working Capital: OEM contracts often come with long credit periods, straining liquidity.
Peer KPI Comparison (9M FY24)
| Company | Revenue (₹ Mn) | EBITDA (₹ Mn) | PAT (₹ Mn) | EBITDA Margin (%) | PAT Margin (%) | ROACE (%) | ROAE (%) | No. of Mfg Units |
| Belrise Industries Ltd. | 60,134.26 | 7,670.42 | 2,454.67 | 12.76 | 4.08 | 11.03* | 9.97* | 17 |
| Bharat Forge Ltd. | 112,702.00 | 20,126.20 | 6,306.00 | 17.86 | 5.60 | NA | NA | 50 |
| Uno Minda Ltd. | 122,462.90 | 13,470.70 | 7,313.00 | 11.00 | 5.97 | NA | NA | 18 |
| Motherson Sumi Wiring India Ltd. | 67,712.70 | 7,259.10 | 4,409.30 | 10.72 | 6.51 | NA | NA | 74 |
| JBM Auto Ltd. | 38,266.30 | 4,798.30 | 1,426.00 | 12.54 | 3.73 | NA | NA | 25 |
| Endurance Technologies Ltd. | 85,973.30 | 11,286.20 | 5,912.20 | 13.13 | 6.88 | NA | NA | 31 |
| Minda Corporation Ltd. | 37,349.60 | 4,219.20 | 2,033.40 | 11.30 | 5.44 | NA | NA | 30 |
Conclusion
Belrise Industries’ IPO offers investors a chance to invest in a steadily growing auto component company with a significant focus on the future of mobility. Its diversified product base, blue-chip client list, and expansion into EV-centric products present long-term opportunities.
However, as with any other investment, investors should weigh the risk. Read and understand the RHP of the company and check if the company’s financials, growth, and risks align with the investor’s financial goals.
For more information on current & upcoming IPO, refer to the following link.