Punjab-based Behari Lal Engineering opens its Rs 301.62 crore IPO, blending growth prospects with sector cyclicality, as it aims to fund expansion and debt repayment amidst strong investor demand.
Behari Lal Engineering has opened a ₹301.62 crore initial public offering on August 12, with the issue set to close on August 14 and a tentative listing date of August 19, according to Trade Brains. The offering combines a fresh issue of shares worth ₹93 crore with an offer for sale of ₹208.62 crore, and the price band has been fixed at ₹271 to ₹285 a share. Retail applicants must bid for at least 52 shares, putting the minimum application size at ₹14,820.
The Punjab-based company, founded in 1995, makes iron and steel products and provides engineering solutions for industrial users. Its range includes metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts and blocks. Trade Brains said the company serves 1,825 domestic and overseas customers as of March 31, 2026, including names such as Amba Shakti Industries, BMW Industries, Shyam Metallics & Energy, Laxcon Steels, MSP Steel & Power, Jai Balaji Industries, Propel Industries and Metso India. Manufacturing is carried out at two plants in Mandi Gobindgarh, Punjab, and the company reported an order backlog of ₹1,785.69 million as of May 31, 2026.
According to the issue documents cited by Trade Brains, the company plans to use most of the proceeds for capital spending at both plants, including new machinery, civil work and rooftop solar installations. A smaller portion will go towards debt repayment, with the balance earmarked for general corporate purposes. Emkay Global Financial Services and Systematix Corporate Services are acting as book-running lead managers, while MUFG Intime India is the registrar.
The company’s financial performance has strengthened over the past three years. Total income rose from ₹449.96 crore in FY24 to ₹516.30 crore in FY25 and ₹546.52 crore in FY26, while profit after tax increased from ₹35.79 crore to ₹52.95 crore and then ₹64.64 crore over the same period, Trade Brains reported. That growth supports the company’s case for expansion, although the grey market premium quoted by the publication suggested investor appetite was already strong, with shares trading at a premium of 23.51% to the upper end of the price band.
Trade Brains said the company’s appeal lies in its broad product mix, established customer relationships and experienced promoters, including Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg and Bhuvnesh Garg. It also pointed to the company’s positioning in the steel and engineering supply chain and its ability to offer bespoke industrial products. But the risks are just as clear: revenue is concentrated among a small group of top customers, much of the business depends on repeat orders, and the company remains heavily exposed to the Indian market and to sectors such as automotive, infrastructure and aggregate crushers. For investors, the IPO appears to offer a mix of growth potential and familiar cyclicality in a sector where demand can move sharply with industrial activity.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
