Another IPO is preparing to come in the market. Yes, auto component manufacturing company Bellrise Industries is preparing to launch an IPO. The company has filed preliminary documents for this with market regulator SEBI. The company plans to raise Rs 2,150 crore through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the IPO is entirely a new issue of equity shares with no offer for sale (OFS) component, PTI reported.
What is the motive behind raising money?
According to the news, the company may consider raising up to Rs 430 crore through pre-IPO placement. If this is done, the size of the issue will be reduced. According to the draft papers filed, the company intends to use the proceeds of Rs 1,618 crore to repay debt. The company has borrowings of Rs 2,463 crore in its accounts till June 2024. Belrise Industries is an automotive component manufacturing company based in India, offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agricultural vehicles.
The company’s customers are big brands.
As of June 2024, it markets its products domestically and internationally and has operations in several markets, including Austria, Slovakia, the UK, Japan, and Thailand. The company also has long standing customers such as leading multinational OEMs (Original Equipment Manufacturers) such as Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield Motors. Let us tell you, by June 30, 2024, it has 15 manufacturing facilities in eight states.
Book-Running Lead Manager
Axis Capital, HSBC Securities & Capital Markets (India) Pvt Ltd, Jefferies India and SBI Capital Markets are the book-running lead managers to the issue. On the financial front, the company’s revenue from operations grew 13.7 per cent to Rs 7,484.24 crore in FY24 from Rs 6,582.50 crore in the previous fiscal. Profit after tax in FY 2024 stood at Rs 310.88 crore, compared to Rs 313.66 crore in the previous financial year. Revenue from operations for the three months ended June 30, 2024 stood at Rs 1,780.97 crore and profit after tax at Rs 71.58 crore.
