Belrise Industries Announces Scheme of Amalgamation with Badve Autocomps & Eximius Infra
Belrise Industries is merging with Badve Autocomps and Eximius Infra Tech. The deal aims to simplify structure and reduce RPT by ₹11,511.38 crore. BAPL reported FY25 revenue of ₹14,211 crore and EITSPL ₹6,956 crore. The merger is expected to offer immediate EPS accretion and is targeted for completion in 10-12 months.
The amalgamation of two companies with significant revenue figures into Belrise Industries Limited is a major corporate action that is expected to have a substantial impact on the company's financial performance, operational structure, and market positioning.
The announcement details a strategic merger aimed at simplifying the group structure, reducing related party transactions, and enhancing operational efficiencies. The immediate EPS accretion and near book value transaction further support a positive sentiment.
Belrise Industries Limited has announced a scheme of amalgamation involving its own entity as the transferee company and Badve Autocomps Private Limited (BAPL) and Eximius Infra Tech Solutions Private Limited (EITSPL) as transferor companies. This strategic move aims to simplify the group's structure, reduce related party transactions by approximately ₹11,511.38 crore, and enhance operational efficiencies through increased verticalization across manufacturing and supply chains.
The merger is expected to lead to immediate Earnings Per Share (EPS) accretion for Belrise Industries, as the transaction is executed close to book value, implying a P/E ratio of approximately 8.3x for the transferor companies compared to Belrise's listed entity P/E of 30.9x. BAPL reported FY25 revenues of ₹14,211 crore and PAT of ₹793 crore, with EBITDA at ₹1,873 crore (13.2% margin). EITSPL reported FY25 revenues of ₹6,956 crore (including subsidy income) and PAT of ₹330 crore, with EBITDA at ₹848 crore (12.2% margin).
This amalgamation is projected to increase Belrise's wallet share amongst existing customers, leading to better customer stickiness, and enable it to transition from a Tier-1 component supplier to a Tier-0.5 system supplier. The combined entity will have a diversified revenue split, with 62.40% from 2-Wheeler and 3-Wheeler segments, 34.09% from 4-Wheeler segments, and 3.51% from other vehicle types post-merger. The presentation also details the extensive product portfolio, manufacturing facilities, and longstanding customer relationships, including recognitions from major OEMs. The merger is anticipated to be completed within 10-12 months, subject to regulatory approvals. The swap ratio involves 140 shares of Belrise for every 1 share of BAPL and 10 shares of Belrise for every 135 shares of EITSPL.
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Belrise Industries Limited filed this with the NSE as a statutory disclosure, categorised under amalgamation. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Belrise Industries Limited. Read the original for the full detail.