Belrise Industries files for an initial public offering (IPO) to raise ₹2,150 crore. The company plans to use the funds primarily for debt reduction and to further expand its operations. The draft red herring prospectus (DRHP) reveals that the IPO will consist entirely of fresh equity shares, with no offer for sale (OFS) component.
Debt reduction plans with Belrise Industries’ ₹2,150 crore IPO
Belrise Industries intends to use ₹1,618 crore of the IPO proceeds to reduce its existing debt. As of June 2024, the company’s total debt stands at ₹2,463 crore. By paying down this debt, the company aims to strengthen its financial position, making room for increased investments and improved operational efficiency.
Belrise Industries seeks global expansion with ₹2,150 crore IPO
The IPO will also help Belrise Industries expand its footprint in global markets. Currently, the company operates across markets like Austria, the UK, Japan, and Thailand. With well-known customers such as Bajaj Auto, Hero MotoCorp, and Jaguar Land Rover, the company aims to capitalize on these relationships and extend its global reach. The funds raised through the IPO will allow Belrise to invest in new technologies and infrastructure to support this growth.
Strong growth in FY24 for Belrise Industries
For FY24, Belrise Industries saw a 13.7% increase in revenue, reaching ₹7,484.24 crore. Despite a slight dip in profit after tax (PAT), the company’s performance remains strong, with healthy growth prospects for the future. With its debt reduction plans and focus on expanding globally, Belrise is well-positioned for continued growth.
IPO managed by leading financial institutions
Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets are managing the IPO. These reputable institutions reflect the confidence investors have in Belrise Industries’ potential. The IPO is expected to attract significant investor interest and help the company achieve its strategic goals.
Conclusion:
Belrise Industries’ ₹2,150 crore IPO will reduce its debt and fuel its expansion plans. With solid financial backing and strategic growth initiatives, the company is set for long-term success in both domestic and international markets.
