The Behari Lal Engineering IPO has received exceptional market response with 15.79 times oversubscription as of 10:45 AM on Day 3, demonstrating strong investor interest across all categories. The IPO received bids for 11,12,08,292 shares against 74,12,769 shares on offer, with the retail portion subscribed 15.79 times and NII portion subscribed 29.26 times. The grey market premium (GMP) stands at ₹80 as of August 13, translating to a listing premium of approximately 28% against the upper issue price of ₹285 per share. The IPO is priced in the band of ₹271-285 per share with a minimum bid size of 52 shares requiring a minimum investment of ₹14,820 at the upper price band. The subscription period runs from August 12 to August 14, 2026, with the basis of allotment expected on August 17, 2026 and listing scheduled for August 19, 2026 on both NSE and BSE. As per InvestorGain and IPO Watch, the grey market premium has maintained positive momentum, with the implied listing price working out to around ₹365 per share at current GMP levels, though actual listing price can differ significantly from grey market indications.
The retail portion was subscribed 15.79 times with bids received for 37.63 lakh shares, demonstrating particularly strong retail investor interest. The subscription breakdown shows QIBs subscribed 2.29 times, NIIs 29.26 times, and RIIs 15.79 times as of August 14, 2026. The IPO comprises a fresh issue of ₹93 crore and an OFS of ₹208.62 crore, with the total issue size of approximately ₹301.62 crores. The IPO has reserved up to 50% of the issue for QIBs, at least 15% for NIIs and at least 35% for retail investors. The promoter holding drops from 88.51% pre-issue to around 70.84% post-issue, representing a nearly 18 percentage points dilution. The allotment of shares is expected to be finalized on August 17, 2026, with the company's shares likely to be listed on both NSE and BSE on August 19, 2026.
The Behari Lal Engineering IPO has secured ₹90.48 crore from anchor investors, allocating 31.74 lakh equity shares at ₹285 per share to 9 anchor investors before the public issue opened. The anchor book included Tata AIA Life Insurance Company, PineBridge Global Funds, Amicorp Capital (Mauritius) Ltd, WhiteOak Capital and Bandhan Mutual Fund. WhiteOak Capital Asset Management was the largest anchor investor, acquiring 7.01 lakh shares through three schemes for about ₹20 crore. Bandhan Mutual Fund was allotted 4.91 lakh shares worth around ₹14 crore, while 360 ONE acquired 4.56 lakh shares valued at approximately ₹13 crore. Singularity AMC, backed by market veteran Madhusudan Kela, picked up 3.5 lakh shares for about ₹10 crore. The grey market premium has maintained positive momentum, with the implied listing price working out to around ₹365 per share at current GMP levels, though actual listing price can differ significantly from grey market indications.
The company's profitability improved consistently during the recent period, with Profit After Tax (PAT) increasing from ₹28.80 crores in FY2023 to ₹64.64 crores in FY2026. The company's revenue grew 6% in FY26 to ₹546.52 crores, while PAT grew 22%, demonstrating significant margin expansion despite modest top-line growth. The EBITDA margin expanded from 13.67% in FY24 to 18.97% in FY26, while PAT margin improved to 12.10%. The funds from the fresh issue will be utilized for purchasing and installing equipment and machinery, including computers and peripherals, and related civil work at manufacturing facilities. The company also plans to install rooftop solar panels at both facilities, repayment or pre-payment of certain borrowings worth ₹0.57 crores, and the remaining amount will be available for general corporate purposes in accordance with applicable regulations. Emkay Global Financial Services and Systematix Corporate Services are the merchant bankers to the issue, with Emkay Global Financial Services serving as the book-running lead manager and MUFG Intime India acting as the registrar.
Incorporated in 1995, Behari Lal Engineering Limited has established itself as one of India's largest metal rolls producers, meeting 10-11.5% of the country's demand in FY26. As of March 2026, the company served 1,825 domestic and international customers across 21 countries, including Amba Shakti Industries, BMW Industries, Shyam Metallics, Vardhman Special Steels, and Laxcon Steels. The company operates two manufacturing facilities at Mandi Gobindgarh in Punjab and has recently commenced construction of a third facility in Fatehgarh Sahib district. The company's precision engineered products cater to a wide variety of industrial applications across automobiles, steel, cement, mining, infrastructure, construction, power, aerospace and defence sectors. In FY26, revenue from operations showed diversified sector contribution with automobiles contributing 38.65%, infrastructure 20.68%, aggregate crusher manufacturers 18.35%, industrial equipment manufacturers 16.85%, and others including aerospace, defence, cement and power contributing 5.47%. The company had an order book of ₹178.57 crore as of May 31, 2026, providing visibility for future revenue. Multiple brokerages including SBI Securities, SBICAP Securities, BP Equities, Kantilal Chhaganlal Securities, and Arihant Capital Markets have recommended subscribing to the IPO, citing the company's expansion plans and focus on higher-value products.
