Belrise Merger Strengthens Core Manufacturing Platform; Expands Rapidly in Defence and Aerospace
Belrise Industries Limited (BIL), one of India’s leading integrated automotive component manufacturers, is accelerating its transformation into a scaled, diversified precision-engineering company through the merger of two profitable group companies having strong operating metrics, Badve Autocomps and Eximius Infra Tech with Belrise Industries Limited, significantly strengthening its operating platform, group structure and long-term growth visibility. The company is also expanding rapidly in the aerospace & defense division.
Badve Autocomps reported revenues of ₹1,421 crore, EBITDA of ₹187 crore with operating margins of 13.2%, and a PAT of ₹79 crore, while Eximius Infra Tech recorded revenues of ₹696 crore, EBITDA of ₹85 crore with operating margins of 12.2%, and a PAT of ₹33 crore. Together, the merger is expected to add approximately ₹1,000 crore in revenue (post related party eliminations) to the consolidated entity. Additionally, Belrise marks its entry into global aerospace supply chains with its first international acquisition, Europe-based SDM. The announcements are aligned to the company’s objective of building a global aerospace supply chain.
Commenting on the developments, Shrikant Badve, Managing Director of Belrise Industries Limited, said, “The merger of Badve Autocomps and Eximius Infra Tech with Belrise Industries is a defining step in simplifying our group structure and building a larger, more integrated manufacturing platform, giving us the scale and capability to engage OEMs more deeply and move further up the value chain as a system-level supplier. This consolidation was a key commitment articulated in our DRHP at the time of our IPO, and with this merger, we have delivered on that promise.”
Executed at close to book value, the merger implies a P/E of 8.3x for the merged entities on FY 25 basis, compared to 30.9x for the listed entity on a TTM basis, resulting in immediate EPS accretion for Belrise shareholders. EY acted as the independent registered valuer for the transaction, while JM Financial provided the fairness of opinion. The consolidation is also expected to materially reduce related-party transactions by approximately ₹1,152 crore.
