Behari Lal Engineering
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Subscription
- Qualified institutionalQIB
- 128.00×
- Big non-institutionalbNII · above ₹10 lakh
- 138.27×
- Small non-institutionalsNII · ₹2–10 lakh
- 130.07×
- Retail individualRII · up to ₹2 lakh
- 32.17×
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 14 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 19 Aug 2026 | ₹133 | +46.67% | ₹5,300 | ₹418 | ₹6,916 |
| 18 Aug 2026 | ₹133 | +46.67% | ₹5,300 | ₹418 | ₹6,916 |
| 17 Aug 2026 | ₹105 | +36.84% | ₹4,100 | ₹390 | ₹5,460 |
| 16 Aug 2026 | ₹84 | +29.47% | ₹3,300 | ₹369 | ₹4,368 |
| 15 Aug 2026 | ₹83 | +29.12% | ₹3,300 | ₹368 | ₹4,316 |
| 14 Aug 2026 | ₹83 | +29.12% | ₹3,300 | ₹368 | ₹4,316 |
| 13 Aug 2026 | ₹80 | +28.07% | ₹3,200 | ₹365 | ₹4,160 |
| 12 Aug 2026 | ₹74 | +25.96% | ₹2,900 | ₹359 | ₹3,848 |
| 11 Aug 2026 | ₹67 | +23.51% | ₹2,600 | ₹352 | ₹3,484 |
| 10 Aug 2026 | ₹53 | +18.60% | ₹2,100 | ₹338 | ₹2,756 |
| 09 Aug 2026 | ₹25 | +8.77% | ₹1,000 | ₹310 | ₹1,300 |
| 08 Aug 2026 | ₹25 | +8.77% | ₹1,000 | ₹310 | ₹1,300 |
| 07 Aug 2026 | ₹30 | +10.53% | ₹1,200 | ₹315 | ₹1,560 |
| 06 Aug 2026 | ₹0 | — | — | — | ₹0 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Issue details
- IPO date
- 12 Aug 2026 – 14 Aug 2026
- Listing date
- 19 Aug 2026
- Face value
- ₹10 per share
- Price band
- ₹271 – ₹285
- Lot size
- 52 shares
- Sale type
- Fresh capital cum OFS
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹302 Cr
- Fresh issue
- ₹93 Cr 32,63,157 shares
- Offer for sale
- ₹209 Cr 73,20,001 shares
- Market cap at offer price
- ₹1,206 Cr
- Promoter holding
- 88.51% → 70.84% pre-issue → post-issue
- ISIN
- INE1EEM01017
- CIN
- U27109PB1995PLC016490
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Emkay Global Financial Services Ltd.
- Registered office
- Village Salani, Amloh Road, Mandi Gobindgarh, Punjab-147 301, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 20,36,900 | 27.48% | 27.48% |
| Anchor investor · within QIB | 31,74,946 | — | 42.83% |
| NII (HNI) | 16,12,761 | 21.76% | 21.76% |
| bNII > ₹10L · within NII | 10,75,174 | — | 14.50% |
| sNII < ₹10L · within NII | 5,37,587 | — | 7.25% |
| Retail (RII) | 37,63,108 | 50.77% | 50.77% |
| Employee | 0 | — | 0.00% |
| Market maker | 0 | — | 0.00% |
| Total issue | 74,12,769 | — | 100.00% |
Net offer to the public of 74,12,769 shares, out of a total issue of 74,12,769. Indented rows sit inside the category above them and are not added to it.
Application size
Minimum 52 shares per lot, in multiples, at ₹285
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 52 | ₹14,820 |
| Retail (max) | 13 | 676 | ₹1,92,660 |
| S-HNI (min) | 14 | 728 | ₹2,07,480 |
| S-HNI (max) | 67 | 3,484 | ₹9,92,940 |
| B-HNI (min) | 68 | 3,536 | ₹10,07,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹285 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 16.56 | 15.28 |
| P/E (×) | 17.21 | 18.65 |
| Price to book (×) | 3.63 | — |
| Market cap | — | ₹1,206 Cr |
Key performance indicators
Latest reported period, standalone
- Return on net worth
- 21.12%
- ROCE
- 27.11%
- Debt / equity
- 0.06
- PAT margin
- 12.10%
- EBITDA margin
- 18.97%
- NAV per share
- ₹78.41
- Price to book
- 3.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
Standalone ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 546.52 | 516.3 | 449.96 |
| Revenue from operations | 534.02 | 507.91 | 446.08 |
| Other income | 12.49 | 8.39 | 3.87 |
| Total expenses | 459.94 | 446.94 | 400.04 |
| Operating profit | 86.58 | 69.36 | 49.92 |
| Operating margin | 15.84% | 13.43% | 11.09% |
| Profit before tax | 86.58 | 69.36 | 49.92 |
| Profit after tax | 64.64 | 52.95 | 35.79 |
| PAT margin | 11.83% | 10.26% | 7.95% |
| Balance sheet | |||
| Total assets | 367.87 | 295.98 | 262.08 |
| Current assets | 251.18 | 196.92 | 177.81 |
| Current liabilities | 58.73 | 51.56 | 58.17 |
| Total liabilities | 61.77 | 54.36 | 68.14 |
| Net worth | 306.1 | 241.62 | 193.94 |
| Current ratio | 4.28× | 3.82× | 3.06× |
| Return on equity | 21.12% | 21.91% | 18.45% |
| Cash flow | |||
| Operating cash flow | 27.54 | 61.89 | 37.14 |
| Investing cash flow | -37.56 | -19.68 | -52.38 |
| Financing cash flow | 8.71 | -40.22 | 13.77 |
| Net cash flow | -1.32 | 1.99 | -1.47 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Funding capital expenditure requirement for purchase and installation of new equipment/machinery and roof-top solar panels at Manufacturing Facility 1 ₹22.99 Cr
The company proposes to purchase and install new equipment/machinery (including computers, printers and computer peripherals) along with civil work for such installation and roof-top solar panels at Village Salani, Amloh Road, Mandi Gobindgarh, Punjab to enhance machining capacity for metal rolls and improve quality and checking methodology.
2 Funding capital expenditure requirement for purchase and installation of new equipment/machinery and roof-top solar panels at Manufacturing Facility 2 ₹40.05 Cr
The company proposes to purchase and install new equipment/machinery along with civil work for such installation and roof-top solar panels at Village Turan, Amloh Road, Mandi Gobindgarh, Punjab to increase heat treatment and forging capacity and improve quality and checking methodology.
3 Repayment and/or pre-payment of certain borrowings availed by the company ₹0.57 Cr
The company proposes to utilize funds for full or partial repayment or pre-payment of certain fund based borrowings to help deleverage the company, maintain optimal debt-equity ratio, improve return on capital employed and enable utilization of internal accruals for business growth.
4 General corporate purposes —
The company proposes to utilize funds for general corporate purposes including meeting ongoing corporate exigencies, working capital requirements, strategic initiatives, building dedicated sales and management teams, business development initiatives and other expenses as approved by the Board from time to time.
1 of 4 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
Selling shareholders
Existing holders selling into the offer — these proceeds go to the seller, not to the company
| Seller | Capacity | Shares offered | Avg. cost |
|---|---|---|---|
| Rajesh Garg | Promoter Selling Shareholder | 19,43,623 | ₹1.12 |
| Lovlish Garg | Promoter Selling Shareholder | 3,50,000 | ₹2.72 |
| Yogita Garg | Promoter Group Selling Shareholder | 21,43,623 | ₹4.08 |
| Dinesh Kumar Garg HUF | Promoter Group Selling Shareholder | 1,50,000 | ₹5.18 |
| SG Tech Engineering Private Limited | Investor Selling Shareholder | 27,32,755 | ₹89.65 |
5 sellers offering 73,20,001 shares.
About Behari Lal Engineering
Behari Lal Engineering Limited, originally incorporated as Behari Lal Ispat Private Limited on May 23, 1995, has evolved into a fully integrated iron and steel manufacturing company with over 2 decades of expertise. The company operates two manufacturing facilities in Mandi Gobindgarh, Punjab, equipped with modern capabilities including a digital steel melting shop with ladle refining furnace (LRF), vacuum degassing (VD), foundry, heat treatment, machine shops, and rolling mills. The company specializes in precision engineered components for critical industrial applications including metal rolls, engineering castings, alloy steel products, forging ingots, and forged shafts/blocks. These products serve diverse end-user industries such as automobile, steel, mining, infrastructure and construction, power, aerospace and defence, and cement. The company has established long-standing relationships with a large customer base across domestic and international markets, with revenue from repeat customers constituting 86.10%, 80.04%, and 78.80% in Fiscals 2025, 2024, and 2023 respectively. The company's revenue from operations has grown from ₹4,629.28 million in Fiscal 2023 to ₹5,079.12 million in Fiscal 2025.
Management
Parkash Chand Garg
Director
Rajesh Garg
VP of Sales
Dinesh Garg
MD
Lovlish Garg
Director
Strengths
As stated in the offer document
Long standing relationships with a large number of customers spread across a wide array of end-user industries with stringent qualification processes
The company has catered to 1,825 customers as of March 31, 2026, with 62.98% customer retention rate and revenue from repeat customers at 84.69% (₹4,522.77 million) in Fiscal 2026.
Diversified product portfolio catering to varied application industries
The company manufactures four main product categories - Metal Rolls (26.35% revenue), Engineering Castings (19.54% revenue), Alloy Steel Products (45.81% revenue), and Forging Ingots serving over 10 industries.
Strategically located Manufacturing Facilities with advanced equipment and robust overlapping processes which enables high capacity utilisation
The company operates 2 manufacturing facilities in Mandi Gobindgarh with combined installed capacity of 119,690 MT and achieved 87.71% capacity utilization in Fiscal 2026.
Robust presence in the steel manufacturing industry leveraging on the legacy and experience of our Promoters and strong domain expertise of our management team
The company has over 2 decades of experience in steel industry with founder Parkash Chand Garg having 30 years as director and management team with extensive industry experience.
Track record of financial performance and consistent growth
The company achieved revenue CAGR of 9.41% and PAT CAGR of 34.38% between Fiscal 2024-2026, with revenue of ₹5,340.25 million and PAT of ₹646.36 million in Fiscal 2026.
Risk factors
As stated in the offer document
Customer Concentration Risk
The company generates significant revenues from its top 10 customers, constituting 38.00%, 39.91% and 37.81% of revenue from operations in Fiscals 2026, 2025 and 2024 respectively. The company does not enter into long-term contracts with customers, making it vulnerable to customer loss or significant reduction in revenue from key customers.
Dependence on Repeat Customers
The company derives 84.69%, 86.10% and 80.04% of revenue from repeat customers in Fiscals 2026, 2025 and 2024 respectively. Loss of repeat customers or reduction in their demand could adversely affect the company's business and financial condition.
Raw Material Cost and Supply Risk
Cost of raw materials constituted ₹2,806.58 million, ₹2,716.46 million, and ₹2,745.21 million (61.02%, 60.78% and 68.62% of total expenses) in Fiscals 2026, 2025 and 2024 respectively. Substantial delay or failure to procure necessary raw materials could adversely impact operations and customer obligations.
Outstanding Creditor Dues
As of March 31, 2026, the company had outstanding dues of ₹201.77 million to 42 creditors. Failure to make timely payments may lead to creditors not providing materials in future or initiating legal proceedings including insolvency proceedings against the company.
Indebtedness and Financial Covenants
As of May 31, 2026, total sanctioned and outstanding indebtedness was ₹840.79 million and ₹148.65 million respectively. The company's financing agreements contain restrictive covenants that could adversely affect its ability to operate the business and may result in acceleration of repayment obligations upon default.
Supplier Concentration Risk
The company is reliant on raw materials from third-party suppliers without long-term contracts. Procurement cost from top 10 suppliers was ₹1,766.96 million, ₹1,385.04 million, and ₹1,583.14 million (38.39%, 30.99%, and 39.57% of total expenses) in Fiscals 2026, 2025 and 2024 respectively.
Company Analysis
from DRHPBehari Lal Engineering Limited is an integrated iron and steel manufacturing company specializing in customized engineering solutions including metal rolls, engineering castings, alloy steel products, and forged components for automotive, infrastructure, and industrial applications.
Behari Lal Engineering Limited, originally incorporated as Behari Lal Ispat Private Limited on May 23, 1995, has evolved into a fully integrated iron and steel manufacturing company with over 2 decades of expertise. The company operates two manufacturing facilities in Mandi Gobindgarh, Punjab, equipped with modern capabilities including a digital steel melting shop with ladle refining furnace (LRF), vacuum degassing (VD), foundry, heat treatment, machine shops, and rolling mills. The company specializes in precision engineered components for critical industrial applications including metal rolls, engineering castings, alloy steel products, forging ingots, and forged shafts/blocks. These products serve diverse end-user industries such as automobile, steel, mining, infrastructure and construction, power, aerospace and defence, and cement. The company has established long-standing relationships with a large customer base across domestic and international markets, with revenue from repeat customers constituting 86.10%, 80.04%, and 78.80% in Fiscals 2025, 2024, and 2023 respectively. The company's revenue from operations has grown from ₹4,629.28 million in Fiscal 2023 to ₹5,079.12 million in Fiscal 2025.
Objects of the Issue
- Funding capital expenditure requirement for purchase and installation of new equipment/machinery (including computers, printers and computer peripherals) along with civil work for such installation at Manufacturing Facility 1 ₹242.88 million p.141
- Funding capital expenditure requirement for purchase and installation of new roof-top solar panels at Manufacturing Facility 1 ₹39.00 million p.141
- Funding capital expenditure requirement for purchase and installation of new equipment/machinery along with civil work for such installation at Manufacturing Facility 2 ₹438.81 million p.141
- Funding capital expenditure requirement for purchase and installation of new roof-top solar panels at Manufacturing Facility 2 ₹39.00 million p.141
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company ₹7.00 million p.141
- General corporate purposes p.141
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹10 each, aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹10 each, aggregating up to ₹1,100.00 million
- Offer for Sale
- Up to 7,854,521 Equity Shares of face value of ₹10 each, aggregating up to ₹[●] million by Selling Shareholders
- Price Band
- [●] to [●] per Equity Share
- Lot Size
- [●] (Bid Lot)
- Face Value
- ₹10 each
Business Model
The company generates revenue primarily through the sale of precision engineered metal rolls, engineering castings, alloy steel products, and forged components to customers in diverse end-user industries. The business operates on a purchase order basis without long-term contracts, serving repeat customers and new customers. Revenue streams include: (1) Alloy Steel Products contributing 50.84% of revenue in Fiscal 2025; (2) Metal Rolls contributing 24.56%; (3) Engineering Castings contributing 17.74%; (4) Forging Ingots and Forged Shafts/Blocks contributing 2.29%; (5) Job Work Income contributing 2.61%; and (6) Other income including high sea sales and traded goods contributing 1.96%. The company benefits from subsidies under the Invest Punjab Scheme including electricity duty compensation and GST refunds.
Business Segments
SWOT Analysis
- • Integrated operations with modern facilities and technical capabilities(p.143)
- • Strong and long-standing customer relationships over decades(p.43)
- • High repeat customer revenue indicating strong customer retention(p.44)
- • Diversified customer base across multiple end-use industries(p.45)
- • Quality certifications and recognized engineering capabilities(p.51)
- • Strong industry growth tailwinds and market opportunity(p.143)
- • High capacity utilization demonstrating operational efficiency(p.54)
- • Improved financial performance with declining debt(p.69)
- • High dependence on top 10 customers without long-term contracts(p.43)
- • Reliance on few key raw material suppliers without long-term agreements(p.47)
- • Geographic concentration with single location manufacturing facilities(p.70)
- • High proportion of revenue dependent on raw material costs(p.46)
- • Inventory management challenges and working capital requirements(p.49)
- • Significant outstanding contingent liabilities from GST and tax matters(p.67)
- • Historical delays in payment of statutory dues(p.57)
- • Filed statutory forms with incorrect information(p.57)
- • Industry growth in alloy steel and metal rolls segments(p.143)
- • Expansion into new end-use industries and customer segments(p.143)
- • Capitalize on China+1 strategy and increased demand for specialized steel(p.143)
- • Capacity expansion to meet growing customer demand(p.143)
- • Product portfolio optimization toward higher-value products(p.56)
- • Expected growth in Indian foundry market(p.143)
- • Improved sustainability initiatives to enhance brand and operational efficiency(p.146)
- • International market expansion across multiple geographies(p.45)
- • Raw material price volatility and supply disruptions(p.63)
- • Economic slowdown impacts on end-use industries(p.63)
- • Increasing environmental regulations and compliance costs(p.63)
- • Intense competition from low-cost markets including China(p.63)
- • Skilled labor shortage in the foundry sector(p.63)
- • Energy-intensive production processes and power cost volatility(p.63)
- • Adverse geopolitical developments affecting exports and operations(p.84)
- • Macroeconomic slowdown in key customer markets affecting demand(p.83)
- • Dependence on continuous technology upgrades in competitive industry(p.63)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Parkash Chand Garg | Promoter | 7.17% | — |
| Rajesh Garg | Promoter and Selling Shareholder | 9.98% | — |
| Dinesh Garg | Promoter | 10.43% | — |
| Lovlish Garg | Promoter and Selling Shareholder | 14.17% | — |
| Bhuvnesh Garg | Promoter | 5.64% | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
Peer comparison
The comparable listed companies named in the offer document, as on 31 Mar 2026
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Behari Lal Engineering Ltd. THIS ISSUE | 16.56 | 78.41 | 18.65, computed at the offer price | 3.63, computed at the offer price | 21.12% |
| 4.77 | 29.26 | 18.48 | — | 16.39% | |
| 136.11 | 859.98 | 34.43 | — | 15.53% | |
| 8.58 | 39.03 | 37.99 | — | 21.89% | |
| -18.54 | 172.42 | — | — | -10.81% | |
Vardhman Special Steel Ltd. | 13.15 | 132.11 | 23.19 | — | 9.59% |
| 4.81 | 163.00 | 43.46 | — | 7.93% | |
| 46.82 | 340.02 | 62.02 | — | 13.70% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.