Belrise Industries shares set for premium listing on May 28; analysts recommend buy, sell or hold strategy

Belrise Industries shares set for premium listing on May 28.

Shares of Belrise Industries are set to make their market debut on Wednesday, May 28, following a robust response to its Rs 2,150-crore initial public offering (IPO), which was subscribed 41.30 times.

The IPO, which consisted entirely of a fresh issue of equity shares with no offer-for-sale (OFS) component, was offered in a price band of Rs 85 - 90 per share. Earlier, the auto components maker raised Rs 645 crore from anchor investors.

Market experts expect a premium listing for the stock, supported by strong investor interest and positive sentiment around the company’s growth prospects.

"We believe that the company may list at a premium, looking at the optimism and demand for the IPO," said Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Wealth.

The company is known for its process engineering and manufacturing excellence, with a growing focus on increasing content per vehicle and expanding into electric vehicles (EVs), four-wheelers and commercial vehicles.

At the upper end of the price band, the company is valued at 26 times its FY24 earnings per share. Its post-issue market capitalisation stands at Rs 8,008.9 crore, translating to a market cap-to-sales ratio of 1.07 based on FY24 figures.

Solanki said the IPO was “fairly priced” and reiterated a “Subscribe – Long Term” stance, advising investors to hold the stock post listing for long-term wealth creation.

Market participants expect the stock to list with a 20-25 per cent premium over its issue price of Rs 90. For those allotted shares, analysts suggest a hold strategy unless there is unexpected volatility.

"For investors who received allotment, it would be wise to hold the stock for the medium to long term," said Mahesh M. Ojha, AVP – Research and Business Development at Hensex Securities. "Those looking to enter post listing should wait for price stability. If the stock retraces toward the Rs 100–105 zone and fundamentals stay intact, it could offer a good entry opportunity," he added.

However, some market watchers also advised caution. "Given the current market momentum and associated risks, we recommend allotted long-term investors to continue holding. Conservative investors may consider booking profits on listing day," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

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

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.