Another IPO is preparing to hit the market. Yes, auto components manufacturing company Bellrise Industries is preparing to launch an initial public offering (IPO). The company has filed preliminary documents in this regard with market regulator SEBI. The company plans to raise Rs 2,150 crore through an initial public offering (IPO). As per the draft red herring prospectus (DRHP), the IPO is completely a fresh issue of 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. Doing this will reduce the size of the problem. As per the drafts submitted, the company intends to use the proceeds of Rs 1,618 crore to repay debt. The company has loans worth Rs 2,463 crore in its accounts as of June 2024. Belrise Industries is an India-based automotive components manufacturing company that offers a wide range of safety-critical systems and other engineering solutions for two, three and four-wheeled vehicles, commercial vehicles and agricultural vehicles.
The company’s clients are big brands.
As of June 2024, it markets its products nationally and internationally and has operations in several markets, including Austria, Slovakia, the United Kingdom, Japan and Thailand. The company also has long-standing customers such as leading multinational OEMs like Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield Motors. Let us tell you that as of June 30, 2024, you will have 15 manufacturing facilities in eight states.
Senior Book Management Manager
Axis Capital, HSBC Securities & Capital Markets (India) Pvt Ltd, Jefferies India and SBI Capital Markets are the lead managers of the issue. On the financial front, the company’s operating income 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 FY2024 amounted to 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 was Rs 1,780.97 crore and profit after tax was Rs 71.58 crore.
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