Swastid Badve and Sumedh Badve, the promoters of Belrise Industries, explained that the stake sale aimed to facilitate the merger of two affiliated entities—Badwe Auto Farms and Xtes—into the public company. Swastid Badve noted that merging the entities without dilution would have pushed promoter shareholding beyond the regulatory limit. “That would have breached the MPS norms,” he stated, referencing regulations set forth by the Securities and Exchange Board of India (SEBI).
Post-transaction, promoter holding is approximately 66–67%. The promoters stated that no additional stake sale will be needed to finalize the merger, mentioning that the transactions would occur at or near book value. “We believe this will be value accretive for shareholders from day one,” Swastid Badve remarked.
The partnership with Plasan Sasa focuses on the production of an unmanned ground vehicle, Atom, for the Indian market. Additionally, Belrise will supply components for Plasan’s global supply chain as part of the collaboration.
Sumedh Badve commented that the defense sector usually has a longer timeline. “The defense space takes time to develop, but once it does, it progresses steadily,” he added. Although orders from the Ministry of Defence may take some time to materialize, Belrise has already initiated work on export-linked component supplies, with revenue anticipated from the next financial year.
Also Read | Belrise expects revenue to double by FY27, sees commercial vehicles as its next big opportunity
Management indicated that the defense and aerospace segments are expected to yield positive returns on capital employed, even though they might lead to higher working capital cycles. Without specifying a revenue target, Swastid Badve mentioned that the defense business will evolve into a “meaningful part” of the company over time.
Belrise has upheld its forecast of mid-teens revenue growth, with stable margins for the medium term. The company has stated that initial gains from defense manufacturing will be countered by margin pressures arising from four new manufacturing facilities. “No facility delivers optimal margins from day one,” Swastid Badve commented.
Belrise Industries currently has a market capitalization of approximately ₹14,990 crore. The stock has appreciated by over 73% in the last six months.
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