Belrise Industries Limited, a Pune-based automotive component giant, kicked off its ₹2,150-crore Initial Public Offering (IPO) on May 21, 2025, but its Grey Market Premium (GMP)—a key indicator of investor enthusiasm—has shown volatility, dipping to ₹4 per share on the opening day, down from a high of ₹18 on May 17. The GMP, reflecting unlisted share trading in the grey market, suggests a modest 4.44% listing gain over the IPO’s upper price band of ₹90, sparking debate among investors about whether Belrise’s mainboard debut on May 28 will deliver the expected returns. As subscription continues until May 23, the fluctuating GMP raises questions about market sentiment and the IPO’s allure in a cautious Indian market.
The IPO, entirely a fresh issue of 23.89 crore equity shares, aims to reduce Belrise’s ₹1,618-crore debt and fund general corporate purposes. Priced at ₹85-₹90 per share, with a minimum bid of 166 shares (₹14,940 at the upper end), it has attracted attention for its scale and Belrise’s robust client base, including Bajaj, Hero, Tata Motors, and Jaguar Land Rover. Posts on X highlight mixed sentiment, with some investors praising the IPO’s “good valuations” and anchor book (₹645 crore from BlackRock, ICICI Prudential), while others note the low GMP signals “less potential gains” compared to Borana Weaves’ ₹55 premium. The GMP’s decline from ₹13-₹14 (14.44%) on May 20 to ₹4 today underscores fading pre-listing hype.
Belrise, established in 1996, is a top-tier manufacturer of safety-critical components like chassis, suspension systems, and mirrors for two-wheelers, three-wheelers, and commercial vehicles, holding a 24% market share in India’s two-wheeler metal components segment. Its FY24 revenue of ₹7,484 crore, up 17.76% from FY22, and a stable ₹311-crore profit bolster its appeal. Brokerages like ICICI Securities and Anand Rathi recommend subscribing, citing Belrise’s double-digit growth and two-wheeler market dominance. “Near-term prospects look promising with premiumisation trends,” ICICI noted, projecting sustained demand. However, Choice Broking’s ‘subscribe’ rating flags risks like high debt and reliance on two-wheeler sales, which face cyclical demand.
The GMP’s volatility—peaking at ₹18 (20%) on May 17, dropping to ₹8 on May 19, and now at ₹4—reflects market jitters. Posts on X suggest that in a bull market, Belrise could have listed at 40-50% gains, but current “no major momentum” caps expectations at 10-20%. Critics argue the GMP’s decline mirrors broader market caution, with the Sensex falling 872 points on May 20 amid global cues. Compared to Borana Weaves’ 24% GMP, Belrise’s modest premium raises concerns about oversaturation in the IPO market, with five issues opening this week.
Investors like Mumbai trader Anil Gupta remain optimistic, citing Belrise’s debt repayment plan, which could save ₹160 crore in interest annually. Yet, the GMP’s slide suggests retail investors, allocated 35% of the issue, may temper expectations.