Behari Lal Engineering IPO gets 'subscribe' tag from analysts; GMP at 23%

Strong industry outlook, robust order book and customer base, along with scope for improved profitability, make analysts bullish on Behari Lal Engineering IPO.

Behari Lal Engineering IPO: The initial public offering (IPO) of Behari Lal Engineering, available for bidding from August 12 till August 14, worth ₹302 crore has garnered positive views from brokerages. It also enjoys a strong grey market premium (GMP), adding to the offer's appeal.

 

Strong industry outlook, robust order book and customer base, along with scope of improved profitability make analysts bullish on Behari Lal Engineering IPO.

 

Bihari Lal Engineering is one of India’s largest metal rolls producers and met ~10-11.5 per cent of the country demand in FY26. As of March 2026, the company catered to 1,825 customers, with exports to 21 countries. It has over time built long-term client relationships, with a customer base comprising of Amba Shakti Industries, BMW Industries, Shyam Metalics, Vardhman Special Steels, among others.

 

 

Historically, the company has recorded Revenue/EBITDA/PAT CAGR of 9.4 per cent/24.7 per cent/34.4 per cent respectively over the FY24-FY26 period. 

 

Brokerages on Bihari Lal Engineering

 

SBI Securities | Subscribe

The company continues to focus on expanding the share of higher-value products in its

sales mix, which combined with the expanded capacities shall result in improved profitability with scale, said SBI Securities. 

 

"At the upper price band of Rs 285, the issue is valued at FY26 P/E multiple of 18.7x based on post-issue capital. We recommend investors to SUBSCRIBE to the issue at the cut-off price," it added.

 

Master Capital | Subscribe for long term

Master Capital Services said that India's alloy steel, metal rolls and foundry industries are poised for strong growth, supported by rising infrastructure and construction activity and increasing demand for long and flat steel products. 

 

In this favourable environment, Behari Lal Engineering is well positioned to benefit from rising demand through its strong presence in the industry, integrated manufacturing capabilities, customised engineering solutions and established customer relationships, said the brokerage. "Investors may consider the IPO as a potential long-term investment opportunity."

 

Swastika | Subscribe for medium-to-long term

Swastika said that the company posted steady growth in its top and bottom lines for the reported periods. However, it added that the issue appears fully priced, with no direct listed peer for easy comparison.

 

"High customer concentration and unhedged forex exposure could impact earnings. Well-informed investors may park funds for medium to long term," it added.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

Bihari Lal Engineering IPO details

The offer is a mix of fresh issue of ₹93.00 crore and an offer for sale (OFS) of ₹208.62 crore.

 

The price band for the offer is set at ₹271 to ₹285 per share. Investors can apply for the offer in lots of 52 shares and multiples thereof. 

 

The company plans to use the proceeds from share sale for funding capex requirement at manufacturing facilities, repaying debt and meeting general corporate purposes. 

 

The offer was close to full subscription mark as it garnered 0.85 times bids as of 12.45 PM. The retail investors led the bidding process so far with 1.24 times bids. Non-institutional investor (NII) quota was subscribed 0.79 times and the qualified institutional buyer (QIB) segment saw 0.17 times bids. 

 

Bihari Lal Engineering IPO GMP

Bihari Lal Engineering IPO GMP today is ₹67. At this level, shares of Bihari Lal Engineering could list at ₹352 on the bourses, a premium of 23.51 per cent over the upper end of the offer price. 

 

Shares of the company are slated to list on bourses on August 19.

 

Emkay Global Financial Services and Systematix Corporate Services are the book-running lead managers. 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.