Belrise Industries IPO sees stellar demand, subscribed 41.30 times on last day of bidding

The initial public offering (IPO) of Belrise Industries Ltd received a robust response from investors across categories, with the issue being subscribed 41.30 times by the close of bidding day. On Day 3 of bidding, the IPO garnered more than Rs 62,000 crore in demand (calculated at the lower price band of Rs 85 per share).

The IPO had set a price band of Rs 85-90 per share and attracted bids for a total of 7,31,22,94,024 shares against the 17,70,58,824 equity shares on offer.

In total, the IPO garnered over 25 lakh applications, reflecting widespread interest from market participants.

The Qualified Institutional Buyer (QIB) portion was subscribed an impressive 108.35 times. The Non-Institutional Investors (NII) category also showed strong support, with a subscription level of 38.33 times. Retailer participation was notable, as the Retail Individual Investors (RII) portion was subscribed 4.26 times. 

The IPO was managed by leading financial institutions including Axis Capital Limited, HSBC Securities and Capital Markets (India) Pvt Ltd, Jefferies India Pvt Ltd, and SBI Capital Markets Ltd, as the book-running lead managers. MUFG Intime India Pvt Ltd served as the registrar for the issue.

Analysts maintain a positive outlook on Belrise Industries, citing its robust market share, favourable valuations, ambitious expansion plans, experienced management and strong fundamentals. Although, they also pointed out that the company's reliance on the Indian market, with limited exports remains a concern.

Belrise Industries, formerly known for its operations in the auto ancillary sector, is looking to fuel its next phase of growth with the funds raised through the IPO. The proceeds are expected to be used for strategic expansion initiatives, debt reduction, and other general corporate purposes.