Mumbai: Belrise Industries made its stock market debut today, listing at Rs 100 on the NSE. This was an 11.11 per cent premium over its issue price of Rs 90. However, the stock opened slightly lower on the BSE at Rs 98.50, giving a 9.44 per cent premium. This debut fell short of investor expectations, as the grey market premium (GMP) had suggested a 21-23 per cent gain on listing day.
The initial public offering (IPO) of Belrise Industries was open from May 21 to May 23, with a price range of Rs 85-90 per share. The company raised Rs 2,150 crore through this IPO by selling over 23.88 crore equity shares.
Leading up to the listing, market watchers had predicted a strong start for the stock. The GMP was around Rs 20-21, and on the last day of bidding, it had reached as high as Rs 28. This led many investors to expect the stock to list at around Rs 109-111 per share.
Despite the below-expectation listing, the IPO itself saw strong demand. It was oversubscribed 41.30 times, receiving about 25.35 lakh applications worth Rs 65,920 crore. Qualified Institutional Buyers (QIBs) showed the most interest, subscribing 108.35 times. Non-Institutional Investors (NIIs) subscribed 38.33 times, while Retail Investors subscribed 4.22 times.
Belrise Industries is a well-known automotive components maker. It was founded in 1988 and is based in Waluj, Maharashtra. The company manufactures parts such as sheet metal, castings, polymer components, suspension parts, and mirror systems. These are used in two-wheelers, three-wheelers, and four-wheelers.
Top brokerage houses had given positive reviews of the IPO, recommending investors to subscribe for both listing gains and long-term growth potential. The issue was managed by SBI Capital Markets, HSBC Securities, Axis Capital, and Jefferies India. MUFG Intime India was the registrar of the issue.
Though the listing was not as strong as expected, the overall interest shows confidence in the company's long-term future.
