2 weeks ago
Behari Lal Engineering IPO subscribed 18.09x, strong listing expected
When a company wants to grow, it can ask people to give it money by buying small parts of the company, called shares.
That is called an IPO — an Initial Public Offering.
The company in this story is Behari Lal Engineering, which makes metal rolls and machine parts in Punjab, India.
It wants money to build bigger factories and add solar panels.
Many people wanted to buy these shares, and demand was very strong.
On the final day of the offer, the IPO was subscribed more than 18 times, meaning people asked for far more shares than were available.
Some investors even pay extra in what is called the 'grey market' to get shares early.
The company expects its shares to start trading on the stock exchange on 19 August.
Buying shares can be risky, though, because prices can go down as well as up.
Behari Lal Engineering IPO was subscribed 18.09x on day 3 of bidding, with the issue closing on Friday, 14 August.
The price band is fixed at ₹271–₹285 per share; GMP of +₹80 points to an estimated listing price of ₹365, about 28% above the upper band.
The issue comprises a fresh issue of ₹93 crore and an offer for sale of 73.20 lakh shares, with ₹90.48 crore raised from anchor investors.
Proceeds will fund capacity expansion and upgrades at its Mandi Gobindgarh plants, rooftop solar installations and repayment of borrowings.
Most brokerages assigned a 'SUBSCRIBE' rating, while Swastika Investmart said the IPO appears fully priced, citing customer concentration and FX risks.
Listing is expected on 19 August on the BSE and NSE, with allotment tentatively finalised on 17 August.
- Who
- Behari Lal Engineering, a Punjab-based manufacturer of metal rolls, engineering castings, alloy steel products and forging ingots, along with its investors.
- What
- The company's IPO was subscribed 18.09x on day 3 of bidding, with a strong listing anticipated.
- Where
- India; shares are expected to list on the BSE and NSE, and the company operates facilities in Mandi Gobindgarh, Punjab.
- When
- Bidding closes on Friday, 14 August; allotment is tentatively scheduled for 17 August, with refunds and demat credit on 18 August.
- Why
- To raise funds to expand and upgrade manufacturing capacity, install rooftop solar panels, repay borrowings and for general corporate purposes.
Bullish brokers (SUBSCRIBE)
Skeptics (valuation caution)
Valuation
Bullish brokers (SUBSCRIBE)
SBICAP Securities, Kantilal Chhaganlal Securities and Arihant Capital say the 17.2–18.7x FY26 P/E valuation appears reasonable given the company's growth profile and peer valuations.
Skeptics (valuation caution)
Swastika Investmart says the IPO appears fully priced and the absence of a directly comparable listed peer makes valuation assessment difficult.
Growth and profitability
Bullish brokers (SUBSCRIBE)
BP Equities highlights improving profitability from value-added products, net debt falling from ₹4.07 crore in FY24 to ₹1.66 crore in FY26, and low leverage as long-term positives.
Skeptics (valuation caution)
Arihant Capital Markets flags steel price volatility, raw material costs and the cyclical nature of industrial demand as key risks to growth.
Risk factors
Bullish brokers (SUBSCRIBE)
Subscribing brokerages expect capacity expansion and a higher contribution from value-added products to drive operating leverage, product mix and profitability.
Skeptics (valuation caution)
Swastika Investmart flags high customer concentration and unhedged foreign exchange exposure as key risks, suggesting only well-informed investors consider the issue from a medium- to long-term perspective.
Key facts
- Price band
- ₹271–₹285 per share
- Day 3 subscription
- 18.09x overall (retail 17.87x, NII 35.05x, QIB 2.29x)
- Grey market premium (GMP)
- ₹80; estimated listing price ₹365 (28.07% above the ₹285 upper band)
- Issue composition
- Fresh issue of ₹93 crore plus OFS of 73.20 lakh equity shares
- Anchor investment
- ₹90.48 crore raised from anchor investors
- Allotment
- Tentatively finalised on 17 August; refunds and demat credit expected on 18 August
- Listing date
- Expected 19 August on BSE and NSE
- Order book
- ₹178.57 crore as of 31 May 2026
Sources
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