Behari Lal Engineering’s Rs 301.62-crore initial public offering (IPO) continued to attract strong investor interest on Thursday, August 13, with the issue receiving bids worth more than seven times the shares on offer by the second day of subscription. The recently disclosed grey market premium (GMP) also indicated a possibility of a strong IPO on the stock exchanges for the company shares.
The Behari Lal Engineering IPO was launched on August 12 and was fully subscribed on the first day itself. By 4:15 pm on August 13, the issue had been subscribed 7.14 times, according to the latest subscription data.
The latest GMP was at Rs 78 per share. At the upper end of the IPO price band of Rs 285, this GMP indicates a potential listing price of around Rs 363 per share. At this level, the implied listing premium would be around 27.37%.
However, investors should be advised that the grey market premium is unofficial and the price of the premium in the grey market can change before listing and might not be guaranteed to be the price and could change before listing.
Behari Lal Engineering IPO subscription status
The IPO is meeting the highest demand of investors of all kinds. As of 4:15 pm on Thursday, the total subscription on Twitter is about 7.14 times.
Qualified institutional buyers (QIBs) subscribed 2.22 times their reserved amount, while non-institutional investors (NIIs) subscribed 9.67 times. The retail investor portion was subscribed 8.71 times.
We also have a very strong response from non-institutional and retail investors that has contributed to the overall subscription figures.
Behari Lal Engineering IPO GMP Today
The GMP for Behari Lal Engineering IPO stood at Rs 78 on August 13. Based on the upper issue price of Rs 285, the grey market indication suggests a possible listing price of Rs 363.
The GMP has increased from Rs 53 in recent days, more than 47% from that level.
Although the GMP is positive for market sentiment, investors will need to consider financial performance, valuation, industry outlook, and IPO structure in the company’s financial position before investing.
IPO Structure and Price Band
The IPO has a price band of Rs 271 to Rs 285 per share.
The issue comprises a fresh issue of 32.63 lakh equity shares amounting to 93 crore and an offer for sale (OFS) of 73.20 lakh shares worth 208.62 crore.
The fresh issue and OFS together make up the total IPO size of Rs 301.62 crore.
Retail investors are required to bid for a minimum of 52 shares. At the upper price band of Rs 285, the minimum investment would therefore be Rs 14,820.
Emkay Global Financial Services is the book-running lead manager for the issue, while MUFG Intime India is the registrar.
Anchor investors and IPO proceeds
Before the public issue opened, Behari Lal Engineering raised Rs 90.48 crore from anchor investors. A total of 31.75 lakh equity shares were allocated to anchor investors at Rs 285 per share.
The company intends to use the net proceeds from the fresh issue for a number of purposes. These are to purchase and install new equipment and machines, computers and related civil works.
A portion of the proceeds will also be used to install rooftop solar panels at the company's facilities. The company will also repay or prepay some of the outstanding borrowings and use the rest for general corporate purposes.
Financial Performance
Behari Lal Engineering reported an improvement in financial performance in FY26.
The total income of the company increased to Rs 546.51 crore in FY26 from Rs 516.30 crore in FY25. Profit after tax rose 21.9% to Rs 64.48 crore from Rs 52.90 crore in the previous financial year.
EBITDA also increased to Rs 101.32 crore in FY26 from Rs 81.31 crore a year earlier.
The financial performance and high subscription figure of the company have led investors to invest in the IPO.
Business Profile
Behari Lal Engineering was formed in 1995 as Behari Lal Ispat Pvt. It was renamed Behari Lal Engineering Pvt. in 2024, and it was converted into a public limited company.
The company is an integrated iron and steel manufacturing company; it offers customised engineering solutions. It has a product range of metal rolls, engineering castings, alloy steel products, forging ingots, and forged shafts.
Allotment and Listing Dates
The share allotment is expected to be concluded on August 17. The company's shares are tentatively to be listed on both the NSE and BSE on August 19.
With the issue already getting strong subscription and the GMP indicating a potential listing premium, investors will be closely watching the final subscription figures, allotment process and market conditions ahead of the listing.
Behari Lal Engineering IPO: Key Details. IPO size: Rs 301.62 crore. Price band: Rs 271-Rs 285. GMP: Rs 78. Indicative listing price based on GMP: Rs 363. Potential premium at upper price band: 27.37%. Day 2 subscription: 7.14 times. QIB subscription: 2.22 times. NII subscription: 9.67 times. Retail subscription: 8.71 times. Minimum retail investment: Rs 14,820. Expected allotment: August 17. Tentative listing: August 19.
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