Last update:November 21, 2024, 3:05 PM IST

Belrise Industries’ IPO is an entirely new share issue with no offer-for-sale component, according to the draft prospectus.

According to the draft IPO documents filed on Tuesday, Belrise Industries plans to use proceeds of Rs 1,618 crore for debt repayment.

Auto component maker Belrise Industries has filed preliminary documents with capital markets regulator Sebi to raise Rs 2,150 crore through an initial public offering (IPO). The IPO is an entirely new issue of equity shares without an offer for sale (OFS) component, according to Red Herring’s draft prospectus (DRHP).

The company may consider raising up to Rs 430 crore through a pre-IPO placement. If this is done, the size of the problem will be reduced.

According to the drafts filed on Tuesday, the company plans to use proceeds worth Rs 1,618 crore to pay down debt.

The company has a loan of Rs 2,463 crore on its books as of June 2024.

Belrise Industries is an India-based automotive component manufacturing company that offers a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agricultural vehicles.

As of June 2024, it has marketed its products both domestically and internationally, with operations expanding to several markets, including Austria, Slovakia, the UK, Japan and Thailand.

The company has a long-standing relationship with customers including major multinational manufacturers (OEMs) such as Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield Motors.

It has 15 manufacturing facilities in eight states as of June 30, 2024.

Financially, the company’s income from operations grew 13.7% to Rs 7,484.24 crore in FY24 from Rs 6,582.50 crore in the previous financial year. Profit after tax was Rs 310.88 crore in FY24 from Rs 313.66 crore in the previous fiscal.

For the three months ended June 30, 2024, revenue from operations was Rs 1,780.97 crore and profit after tax was Rs 71.58 crore.

Axis Capital, HSBC Securities and Capital Markets (India) Private Ltd, Jefferies India and SBI Capital Markets are the lead managers of the issue.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)