Punjab-based Behari Lal Engineering's ₹301.62 crore IPO reached over 3 times subscription on its second day. With shares priced between ₹271 and ₹285, the company is aiming to fund equipment upgrades and debt reduction. While investor interest is rising, potential shareholders are weighing the company's customer concentration risks and high client turnover observed in recent financial reports.
The initial public offering of Behari Lal Engineering has gathered significant momentum on its second day, with the issue subscribed 3.24 times as of August 13, 2026. The Punjab-based manufacturer, which focuses on iron and steel products, is looking to raise a total of ₹301.62 crore. This amount includes a fresh issue of shares worth ₹93 crore and an offer for sale (OFS) of ₹208.62 crore, where existing shareholders are selling their stake.
Anchor Book and Financial Performance
Before opening to the public, the company secured ₹90.48 crore from nine anchor investors on August 11, including names such as WhiteOak Capital Asset Management, Bandhan Mutual Fund, 360 ONE, and Singularity AMC. For the financial year 2026, the company reported a revenue of ₹546.52 crore and a profit after tax of ₹64.64 crore. This performance data provides a snapshot of the company's recent scale, which investors are currently evaluating alongside the growth plans proposed in the IPO.
Business Risks and Customer Dependencies
While the subscription numbers indicate strong interest, the company’s filings highlight specific operational risks that investors often monitor. A major point to consider is the concentration of business among a small group of clients. In FY26, the company’s top 10 customers accounted for 38% of its total revenue, and it operates without long-term contracts with many of these buyers. This lack of long-term agreements increases the risk that losing a few large clients could impact future revenue.
Additionally, the company reported a customer turnover rate—the percentage of clients that stopped doing business with them—of 38.58% in the same fiscal year. This high rate of customer movement suggests a competitive market where the company must constantly work to retain or replace its client base, which could affect future stability and profit margins.
Use of Funds and Listing Plans
The company plans to use ₹93 crore from the fresh issue primarily to buy and install new manufacturing machinery and rooftop solar panels at its Punjab facilities. A smaller portion, ₹57 lakh, is allocated for debt repayment, which may provide some relief to the company's balance sheet. The remainder of the proceeds is earmarked for general business purposes.
Market sentiment currently reflects optimism, with unofficial grey market data suggesting a premium of around ₹74 per share. This indicates a potential listing price near ₹359, representing a 26% jump over the upper price band of ₹285. However, investors should note that grey market premiums are speculative and do not guarantee actual listing performance. The IPO is scheduled to close on August 14, with the shares expected to list on the BSE and NSE on August 19, 2026.