Behari Lal Engineering's initial public offering (IPO) has garnered significant attention, with the issue being subscribed 7.78 times by the second day of bidding. The IPO, which includes a fresh issue of shares worth Rs 93 crore and an offer for sale of 73.20 lakh equity shares, is priced between Rs 271 and Rs 285 per share.
On the retail front, the IPO was subscribed 9.36 times, with bids for 37.63 lakh shares. Non-institutional investors showed even stronger interest, subscribing 11.11 times with bids for 16.12 lakh shares, while qualified institutional buyers subscribed 2.22 times, with bids for 20.36 lakh shares. The grey market premium (GMP) for the IPO stands at Rs 80, indicating a 28% premium over the upper price band, suggesting a potential listing price of around Rs 365 per share.
The proceeds from the fresh issue are earmarked for purchasing and installing equipment and machinery at the company's manufacturing facilities, as well as for installing rooftop solar panels. Additionally, funds will be used for repaying certain borrowings and for general corporate purposes.
Behari Lal Engineering raised Rs 90.48 crore from anchor investors a day before the IPO opened, allotting 31.75 lakh equity shares at Rs 285 per share. The anchor investors include Tata AIA Life Insurance Company, PineBridge Global Funds, Amicorp Capital (Mauritius) Ltd, WhiteOak Capital, and Bandhan Mutual Fund.
The IPO allotment is expected to be finalized on August 17, 2026, with shares likely to be listed on the NSE and BSE on August 19, 2026. Emkay Global Financial Services Ltd. is the book-running lead manager for the issue, with MUFG Intime India Pvt. Ltd. as the registrar.
Behari Lal Engineering operates two manufacturing facilities in Punjab and is constructing a third facility. The company is one of India's largest metal rolls producers and plans to use the IPO proceeds to fund capital expenditure and expand its product mix.
Background
Behari Lal Engineering's IPO comes at a time when the Indian stock market is witnessing increased investor interest in new listings. The company's strategic focus on expanding its manufacturing capabilities and product offerings aligns with broader industry trends towards diversification and growth.
Looking ahead, investors should monitor the listing performance of Behari Lal Engineering's shares, given the strong subscription and grey market sentiment. The company's strategic focus on expanding its manufacturing capabilities and product offerings could drive future growth.
