Behari Lal Engineering launches a ₹301.62 crore IPO with early signs of a positive listing, buoyed by a significant grey market premium despite light initial subscription levels.
Behari Lal Engineering opened its ₹301.62 crore initial public offering on August 12 with early market signals pointing to a modestly positive debut. NDTV Profit reported that the grey market premium stood at ₹67, implying an estimated listing price of about ₹352 a share, or a gain of roughly 23.5% over the upper end of the issue price band. The subscription window runs until August 14.
The issue combines a fresh sale of 32.63 lakh shares worth ₹93 crore with an offer for sale of 73.20 lakh shares worth ₹208.62 crore. The price band is set at ₹271 to ₹285 a share, and retail investors must apply for at least 52 shares, meaning a minimum outlay of ₹14,820 at the top of the band. The company had already raised ₹90.48 crore from anchor investors before the public offer opened, according to NDTV Profit.
Subscription was still light early on Wednesday, with NDTV Profit putting the issue at 0.42 times subscribed by 11:10 a.m. The stock is scheduled to be finalised for allotment on August 17 and is tentatively due to list on the NSE and BSE on August 19. Emkay Global Financial Services is the book-running lead manager and MUFG Intime India is the registrar.
Behari Lal Engineering, founded in 1995 as Behari Lal Ispat Pvt. and renamed last year before becoming a public company, makes customised iron and steel products including metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts. For FY26, the company reported total income of ₹546.51 crore and profit after tax of ₹64.48 crore, up 21.9% from the previous year, while EBITDA rose to ₹101.32 crore from ₹81.31 crore. The proceeds from the fresh issue are earmarked for new machinery, rooftop solar installations, debt repayment and general corporate purposes.
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.
