IPO Overview
Incorporated in 1995, Behari Lal Engineering is an integrated iron and steel manufacturing company producing customised products for critical industrial applications. Its portfolio includes metal rolls, engineering castings, alloy steel products, forging ingots, and forged shafts/blocks. The company’s product portfolio is well diversified, with alloy steel products contributing 45.8% of FY26 revenue, followed by metal rolls (26.4%), engineering castings (19.5%), and forging products (4.4%). Its engineered components serve sectors including automobiles, infrastructure, mining, steel, power, aerospace & defence, cement, and heavy engineering. With over two decades of manufacturing expertise, the company serves 1,825 customers and exports its products across 21 countries spanning five continents, with repeat customers accounting for 84.7% of FY26 revenue.
The company is launching its Mainboard IPO on BSE and NSE. The book-built issue comprises a fresh issue of 0.33 crore equity shares aggregating up to ₹93.00 crore and an Offer for Sale (OFS) of 0.73 crore equity shares aggregating up to ₹208.62 crore by existing shareholders, making the total issue size ₹301.62 crore. The IPO is priced at a band of ₹271 – ₹285 per share. It opens on 12 August 2026 and closes on 14 August 2026, with listing expected on 19 August 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 11 August 2026 |
| IPO Open Date | 12 August 2026 |
| IPO Close Date | 14 August 2026 |
| Allotment Date | 17 August 2026 (Expected) |
| Credit to Demat | 18 August 2026 |
| Listing Date | 19 August 2026 (Tentative) |
| Price Band | ₹271 – ₹285 per share |
| Face Value | ₹10 per share |
| Lot Size | 52 shares |
| Minimum Investment (Retail) | ₹14,820 (approx) |
| Issue Size | ₹301.62 crore |
| Fresh Issue | ₹93.00 crore |
| Offer For Sale (OFS) | 73,20,001 shares (₹208.62 crore) |
Note: A substantial portion of the IPO is an Offer for Sale. Investors should distinguish between money entering the company through the fresh issue and proceeds going to selling shareholders.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
The IPO includes an Offer for Sale of 73,20,001 shares. Unlike the OFS proceeds, fresh issue funds will be available to the company for expansion and other corporate requirements.
Selling Shareholders: Existing promoter group members — Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg, and Bhuvnesh Garg.
Objects of the Issue (Fund Utilization)
The company plans to use the fresh issue proceeds for: funding capital expenditure for installing new machinery, equipment, rooftop solar panels, and related civil works across its two manufacturing facilities — ₹63.04 crore; and repayment / pre-payment of certain borrowings — ₹0.57 crore. The remainder will be used for general corporate purposes.
- Capital expenditure for new machinery, equipment & rooftop solar panels — ₹63.04 crore
- Repayment / prepayment of borrowings — ₹0.57 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: Emkay Global Financial Services Limited & Systematix Corporate Services Limited
- Registrar to the Issue: MUFG Intime India Private Limited
Promoters & Management
The promoters of the company are Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg, and Bhuvnesh Garg — a family-driven promoter group with deep roots in Punjab’s industrial manufacturing ecosystem.
Company Details
Behari Lal Engineering (BLEL) is a precision engineering manufacturer with over two decades of experience in the steel and engineered components segment. Its operations are supported by a modern, fully integrated manufacturing ecosystem comprising a digital steel melting shop, ladle refining furnace (LRF), vacuum degassing (VD), foundry, heat treatment facilities, machine shops, and rolling mills. This integrated setup, combined with strong in-house product development capabilities, enables the company to deliver highly customised, precision-engineered components tailored to specific customer requirements.
Sectors Served:
- Steel & Iron
- Mining & Crushing
- Power
- Sugar
- Automotive
- Aerospace & Defence
- Cement
- Heavy Engineering & Infrastructure
Key Products Manufactured:
- Metal Rolls (for rolling mills)
- Engineering Castings (0.5 kg to 20 MT)
- Alloy Steel Products (bars in multiple sections/grades, tool steel, valve steel)
- Forging Ingots & Forged Shafts/Blocks
Key Capabilities:
- In-house design and machining capabilities, stringent quality certifications, and long-standing customer relationships supporting strong repeat business.
- Fully integrated manufacturing — steel melting, LRF, vacuum degassing, foundry, heat treatment, and rolling mills under one roof
Manufacturing Facilities:
- Two manufacturing facilities at Mandi Gobindgarh, Punjab, with an order book of approximately ₹178.57 crore as of 31 May 2026.
- Combined installed capacity of 1,19,690 MT with overall capacity utilisation of 87.7% in FY26.
Certifications:
- Stringent quality certifications supporting aerospace, defence, and automotive sector requirements
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | PAT Margin |
| FY23 | ₹184.81 | ₹32.10 | ~17.6% |
| FY24 | ₹449.96 | ₹35.79 | ~16.9% |
| FY25 | ₹516.30 | ₹52.95 | ~8.97% |
| FY26 | ₹546.52 | ₹64.64 | ~11.8% |
Key Financial Metrics
- PAT has increased from ₹35.79 crore in FY24 to ₹64.64 crore in FY26 — representing growth of approximately 81% in two years.
- Debt-to-equity stands at only 0.06, while ROCE is 27.11% and ROE is 23.60% — indicating a largely debt-free, high-efficiency balance sheet.
- Post-issue P/E: 18.65x (based on FY26 earnings); Price to Book Value: 3.63x; Return on Net Worth: 21.12%.
- Implied post-issue market capitalisation at upper price band: approximately ₹1,206 crore.
Company Strengths
- One of India’s largest manufacturers of metal rolls, catering to approximately 10–11.5% of domestic demand in FY26.
- Fully integrated manufacturing ecosystem — from steel melting to machining — enabling delivery of highly customised, precision-engineered components under one roof.
- Diversified product portfolio across four major categories serving eight-plus industrial sectors, reducing dependence on any single product or segment.
- Strong repeat customer base — 84.7% of FY26 revenue came from repeat customers out of a total base of 1,825 domestic and international clients.
- Nearly debt-free balance sheet with D/E of just 0.06, along with strong ROCE of 27.11% — reflecting efficient capital deployment.
- Export presence across 21 countries spanning five continents, providing meaningful revenue diversification beyond the domestic market.
Key Risks & Challenges
- Large OFS component: A substantial portion of the IPO is an Offer for Sale — meaning a significant part of the ₹301.62 crore raised goes to selling shareholders, not to the company for growth.
- PAT inconsistency: The company posted a lower net profit of ₹28.13 crore in FY25, with the decline attributed to an extraordinary item of ₹16.97 crore — raising questions about earnings sustainability.
- High borrowings: Overall borrowings stood at ₹242.57 crore as of December 31, 2025, which remains a concern despite the low D/E ratio.
- Sector cyclicality: Steel, mining, and heavy engineering sectors are inherently cyclical — any downturn in industrial capex or commodity prices can directly impact revenues.
- Geographic concentration: Both manufacturing facilities are located in Mandi Gobindgarh, Punjab — creating single-location risk for all production activity.
- Valuation concern: Based on FY25 earnings, the P/E stands at 28.44x — making the issue appear fully priced if the bumper FY26 profitability is not sustained going forward.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
