Belrise Industries’ stock price declined by 4% after a solid initial public offering (IPO). Should investors consider buying, selling, or holding their shares?

Belrise Industries share price: The stock was launched on May 28, starting at ₹100 on the NSE and ₹98.5 on the BSE, indicating good demand with a subscription rate of 41.30 times. Although it experienced initial gains, the stock hovered around ₹96 as analysts recommended holding for the long term amidst market fluctuations.

Belrise Industries made a strong entrance in the stock market on Dalal Street today, May 28, as the shares opened at an 11.11% premium at ₹100 each on the NSE, compared to the offer price of ₹90. On the BSE, the listing was at a 9.44% premium at ₹98.5 per share.

After a robust opening on the exchanges, Belrise Industries’ stock briefly rose to a daily peak of ₹102 but failed to maintain that level, trading close to ₹96 by noon (representing a 4% drop from the listing price). The IPO saw excellent engagement from all investor categories, achieving an overall subscription of 41.30 times during the bidding period from May 21 to May 23.

Following the IPO debut of Belrise Industries, Prashanth Tapse, Senior VP (Research) at Mehta Equities, remarked that the listing fell short of market expectations due to a weak market atmosphere. He highlighted that the IPO had an exceptional response, with a total subscription exceeding 41 times, greatly surpassing anticipations.

Market expert says about Belrise Industries’ stock

He recommended that, considering the current market trends and inherent risks, long-term investors who were allotted shares should hold onto them, even with anticipated short- to medium-term volatility. For more conservative investors, he advised taking profits on the first day of trading.

Gaurav Garg from Lemonn Markets Desk mentioned that Belrise Industries had a strong market debut on May 28, opening at ₹100 on the NSE (an 11.11% premium) and ₹98.5 on the BSE (a 9.44% premium) against the issue price of ₹90. He indicated that there was significant demand for the IPO, with qualified institutional buyers subscribing 108.35 times, non-institutional investors 38.33 times, and retail investors 4.27 times.

He pointed out that Belrise is an important supplier of vital components and engineering solutions for various vehicles, including two-, three-, and four-wheelers, along with commercial and agricultural vehicles. The company collaborates with major original equipment manufacturers (OEMs) like Hero MotoCorp, Bajaj Auto, and Jaguar Land Rover. According to Garg, its strong relationships with OEMs and focus on forward-looking sectors position it as a promising option for medium- to long-term investors.