💡Overview & Quick Summary
Behari Lal Engineering Limited IPO Summary: Behari Lal Engineering Limited is launching a Rs. 301.62 Crore public offer (Fresh Issue: Rs. 93.00 Cr; OFS: Rs. 208.62 Cr) priced between Rs. 271 and Rs. 285 per share from August 12 to August 14, 2026. The company is one of India's largest metal rolls producers, meeting 10.00–11.5% of national demand in FY26. Financials reflect consistent expansion with FY26 Revenue reaching Rs. 546.52 crore, EBITDA at Rs. 101.33 crore (18.54% margin), PAT at Rs. 64.64 crore (22% YoY growth), and RoNW at 21.12%. Sushil Finance recommends SUBSCRIBE due to strong capital efficiency, operating leverage and capex-led growth.
1. IPO Overview
Behari Lal Engineering Limited, an integrated iron and steel manufacturer specializing in customized engineering solutions and metal rolls, has finalized its initial public offering parameters. The issue opens for subscription on August 12, 2026 and closes on August 14, 2026. The price band has been determined at Rs. 271 to Rs. 285 per share with a face value of Rs. 10 per share.
| Issue Parameter |
Details |
| Price Band |
Rs. 271 to Rs. 285 Per Share |
| Issue Opens On |
Aug 12, 2026 |
| Issue Closes On |
Aug 14, 2026 |
| Lot Size |
52 Shares & in Multiples thereafter |
| Total Issue Size |
Rs. 301.62 Cr (1,05,83,158 Shares) |
| Fresh Issue Size |
Rs. 93.00 Cr |
| Offer for Sale (OFS) |
Rs. 208.62 Cr (up to 73,20,001 Equity Shares) |
| Face Value |
Rs. 10 Per Share |
| Listing Stock Exchanges |
BSE & NSE |
| Lead Managers |
Emkay Global Financial Services Ltd., Systematix Corporate Services Ltd. |
| Registrar to the Issue |
MUFG Intime India Pvt. Ltd. |
2. Key IPO Details
The offer structure details the issuance breakdown alongside category reservations across Qualified Institutional Buyers (QIB), Non-Institutional Investors / High Net-Worth Individuals (HNI), and Retail Individual Investors.
Offer Structure
| Issuance Segment |
Amount (in Cr.) |
| Fresh Issue |
Rs. 93.00 Cr |
| Offer for Sale (OFS) |
Rs. 208.62 Cr |
| Total Public Issue |
Rs. 301.62 Cr |
Issue Breakup by Investor Category
| Reservation Category |
% of Issue |
Amount in Cr. (at upper band) |
| QIB (Qualified Institutional) |
50% |
Rs. 150.81 Cr |
| HNI (Non-Institutional) |
15% |
Rs. 45.24 Cr |
| RETAIL |
35% |
Rs. 105.57 Cr |
| TOTAL |
100% |
Rs. 301.62 Cr |
3. Company Overview
Behari Lal Engineering Limited is an integrated iron and steel manufacturer specializing in customized engineering solutions. Per CRISIL Research, the company is one of India's largest metal rolls producers, meeting 10.00% to 11.5% of national demand in FY26.
The company operates across three distinct core manufacturing segments:
- Alloy Steel Products: Accounted for 45.81% of FY26 revenue.
- Metal Rolls: Accounted for 26.35% of FY26 revenue.
- Engineering Castings: Accounted for 19.54% of FY26 revenue.
Behari Lal Engineering operates from two manufacturing facilities located in Mandi Gobindgarh, Punjab, boasting a combined installed capacity of 119,690 MT running at a high utilization rate of 87.71% in FY26. The company is family-led by the Garg promoters and has established durable, long-standing customer relationships, evidenced by repeat customers contributing 84.69% of FY26 revenue.
4. Objects of the Issue
The Offer comprises a Fresh Issue aggregating up to Rs. 93 crore plus an Offer for Sale of up to 73,20,001 equity shares. The OFS is predominantly conducted by the Promoter and Promoter Group Selling Shareholders (Rajesh Garg, Lovlish Garg, Yogita Garg, Dinesh Kumar Garg HUF) along with investor shareholder SG Tech Engineering Private Limited.
The Net Proceeds from the Fresh Issue are earmarked for deployment as follows:
- Capital Expenditure (Capex): Approximately Rs. 63.04 crore is earmarked for capex toward new equipment/machinery and rooftop solar panels at both manufacturing facilities.
- Debt Repayment: A modest Rs. 0.57 crore is allocated for debt repayment.
- General Corporate Purposes: The balance fresh issue proceeds (capped at 25% of gross proceeds) will be deployed toward general corporate needs.
This structure represents an overwhelmingly capex-led growth issue with negligible debt repayment, indicating the company is largely self-funded and using the public raise mainly to expand and modernize its operational capacity.
5. Key Investment Highlights
- Long-standing Customer Relationships: Built across diverse end-user industries, with repeat customers contributing 84.69% of FY26 revenue.
- Diversified Product Portfolio: Well-balanced product mix spanning Alloy Steel Products (45.81%), Metal Rolls (26.35%), and Engineering Castings (19.54%) of FY26 revenue.
- Strategically Located Facilities: Located in Mandi Gobindgarh, Punjab, with advanced, overlapping processes enabling an 87.71% capacity utilization across an installed capacity of 119,690 MT.
- National Category Leadership: Positioned as one of India's largest metal rolls producers, fulfilling 10.00–11.5% of total national demand in FY26 (Source: CRISIL Report).
- Consistent Financial Growth & High Profitability: Multi-year financial expansion reaching FY26 revenue of Rs. 534.03 crore (Total Income of Rs. 546.52 crore), EBITDA of Rs. 101.33 crore, and PAT of Rs. 64.64 crore.
Brief Financial Performance Summary
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
449.96 |
516.30 |
546.52 |
| Total Expenditure |
400.04 |
446.94 |
459.94 |
| EBITDA |
60.99 |
81.31 |
101.33 |
| Profit Before Tax (PBT) |
49.92 |
69.36 |
86.58 |
| Profit After Tax (PAT) |
35.79 |
52.95 |
64.64 |
| E.P.S. (Diluted) (Rs.) |
10.07 |
13.56 |
16.56 |
| RONW (%) |
18.48% |
21.92% |
21.12% |
6. IPO Timeline & Payment Charts
Indicative Event Timetable
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with Designated Stock Exchange |
17/8/2026 |
| Initiation of refunds / unblocking ASBA Fund |
18/8/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
18/8/2026 |
| Commencement of trading of Equity Shares on Stock Exchanges |
19/8/2026 |
Retail Category Bidding Lot Size Matrix (at Upper Band @285)
| Lot Size (Shares) |
Amount (Rs.) |
| 52 | 14,820 |
| 104 | 29,640 |
| 156 | 44,460 |
| 208 | 59,280 |
| 260 | 74,100 |
| 312 | 88,920 |
| 364 | 1,03,740 |
| 416 | 1,18,560 |
| 468 | 1,33,380 |
| 520 | 1,48,200 |
| 572 | 1,63,020 |
| 624 | 1,77,840 |
| 676 | 1,92,660 |
HNI Payment Chart (Upper Band @285)
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
728 |
2,07,480 |
| Big HNI |
3,536 |
10,07,760 |
7. Our View / Recommendation
Analyst Recommendation: SUBSCRIBE
Sushil Finance Research Stance & Valuation View
Behari Lal Engineering merits a SUBSCRIBE, supported by consistent growth, strong returns, and a self-funded, capex-led issue structure.
Revenue grew steadily from Rs. 516.30 crore to Rs. 546.52 crore in FY26, while PAT grew faster from Rs. 52.95 crore to Rs. 64.64 crore (22% YoY growth) as EBITDA margin expanded from 15.75% to 18.54%, reflecting genuine operating leverage and product-mix improvement toward the higher-margin Alloy Steel Products segment.
RoNW has stayed consistently strong across all three years (18.48%–21.92%), evidencing durable capital efficiency rather than a one-off spike. Category leadership as one of India's largest metal rolls producers (10–11.5% national share), high capacity utilization (87.71%), and a new third facility under construction all point to genuine expansion runway.
Importantly, only Rs. 0.57 crore of the fresh issue goes to debt repayment - this is a genuine capacity-expansion raise, not a balance-sheet-repair IPO, funded largely by a company already generating strong internal returns. At listed peer diluted P/E of 18x–62x (average ~31x) against Behari Lal's FY26 diluted EPS of Rs. 16.56, there is reasonable valuation room even at a conservative discount to peers.
8. Frequently Asked Questions (FAQs)
Q1. What is the business model of Behari Lal Engineering Limited?
Behari Lal Engineering is an integrated iron and steel manufacturer offering customized engineering solutions across Metal Rolls, Engineering Castings, and Alloy Steel Products from facilities in Mandi Gobindgarh, Punjab.
Q2. What is the market share of Behari Lal Engineering in Metal Rolls?
According to CRISIL Research, the company meets 10.00% to 11.5% of India's national demand in metal rolls for FY26.
Q3. How much money from the fresh issue goes toward debt repayment?
Only a modest Rs. 0.57 crore is earmarked for debt repayment. Approximately Rs. 63.04 crore of the net proceeds is allocated toward capital expenditure for new machinery and solar panels.
Q4. What are the key financial performance metrics of FY26?
In FY26, Behari Lal Engineering generated Total Income of Rs. 546.52 crore, EBITDA of Rs. 101.33 crore, PAT of Rs. 64.64 crore, Diluted EPS of Rs. 16.56, and a Return on Net Worth (RoNW) of 21.12%.
Q5. Who are the lead managers and registrar for the IPO?
The Lead Managers are Emkay Global Financial Services Ltd. and Systematix Corporate Services Ltd. The Registrar is MUFG Intime India Pvt. Ltd.
9. Red Herring Prospectus (RHP) Reference
10. Disclaimer
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
