Pune-based automotive component manufacturer Belrise Industries has submitted draft documents to SEBI for a Rs 2,150-crore initial public offering (IPO) in order to reduce its debt burden.
The IPO will consist of only new shares, with all proceeds, excluding expenses, going to the company. The company plans to use Rs 1,618.08 crore, which is 62.52 percent of its total borrowings, to reduce its debt and improve its debt-equity ratio.
Belrise may also consider a pre-IPO placement of Rs 430 crore, which would decrease the amount raised through the new shares. The remaining funds from the IPO will be used for general corporate purposes.