Behari Lal Engineering launched its ₹301.62 crore IPO today, open for subscription until August 14. The issue is priced between ₹271 and ₹285 per share. While the company plans to fund capacity expansion through the fresh issue, investors should note the large offer-for-sale component and sector-specific risks like raw material price fluctuations.
Behari Lal Engineering Ltd launched its initial public offering (IPO) today, August 12, 2026, marking a significant step for the Punjab-based manufacturer. The issue will remain open for public subscription until August 14, 2026. The company has set a price band of ₹271 to ₹285 per equity share, with a minimum lot size of 52 shares. This means retail investors looking to participate will need to invest at least ₹14,820 at the upper end of the price band.
The total issue size stands at ₹301.62 crore. It is important for investors to distinguish between the two parts of this offering. The IPO consists of a fresh issue of ₹93 crore, which is intended to bring capital into the company, and an Offer-for-Sale (OFS) of approximately ₹208.62 crore. The OFS portion involves existing shareholders and promoters selling a part of their holdings; the money from this specific portion goes to the selling shareholders rather than into the company’s business operations.
Behari Lal Engineering intends to use the money raised from the fresh issue to fund capital spending on its manufacturing capabilities. Specifically, the company plans to purchase new machinery and equipment for its facilities in Mandi Gobindgarh, Punjab. Additionally, the company is allocating funds for the installation of rooftop solar panels, which is a move to improve operational efficiency and potentially manage energy costs. A portion of the proceeds is also earmarked to reduce existing debt.
The company has demonstrated growth in recent years, with its revenue increasing from ₹449.96 crore in the fiscal year 2024 to ₹546.52 crore in fiscal year 2026. Its profit after tax has also seen an upward trend, reaching ₹64.64 crore in fiscal 2026. According to CRISIL, the company is recognized as a significant player in the metal rolls production segment in India, and it is projected to capture a notable portion of the country's demand.
Despite the growth, investors should consider the inherent risks associated with the industry. Behari Lal Engineering operates in the iron and steel sector, which is highly cyclical and sensitive to broader economic conditions. Profitability can be impacted by fluctuations in raw material prices, which are a major input cost. Furthermore, the company faces customer concentration risks, as it relies on a set of top customers without long-term contracts in all cases. The competitive nature of the heavy engineering and industrial manufacturing sector means the company must consistently maintain its operational efficiency to protect its margins.
The anchor investment portion, which was already completed, saw the company raise ₹90.48 crore from institutional investors at the upper price band of ₹285. The shares are tentatively expected to list on the NSE and BSE on August 19, 2026. Investors should track the subscription levels in the coming days, as this often provides insight into market sentiment ahead of the listing.