Behari Lal Engineering IPO to open on August 12: Price band, issue size, subscription dates and key details

Introduction

Founded in 1995 and based in Mandi Gobindgarh, Behari Lal Engineering is a Punjab-based iron and steel manufacturer that makes precision-engineered components for heavy industry, like metal rolls, engineering castings, alloy steel products, forging ingots and shafts, serving steel, mining, and power sectors.

Behari Lal Engineering IPO: Key highlights

Behari Lal Engineering IPO dates and timeline

Three days of bidding, then allotment and listing about a week later.

Behari Lal Engineering IPO price band, lot size and minimum investment

Face value ₹10, price band ₹271 to ₹285. Retail investors can bid at the cut-off price. HNI categories bid at a specific price within the band.

QIB gets not more than 50% of the offer, retail not less than 35%, and NII not less than 15%.

Behari Lal Engineering IPO issue size and offer structure

The OFS is spread across several sellers. Corporate shareholder SG Tech Engineering is the largest at close to ₹78 crore, followed by promoter Yogita Garg at around ₹61 crore, Rajesh Garg at roughly ₹55 crore, and smaller contributions from Lovlish Garg and Dinesh Kumar Garg (HUF). Promoter holding drops from 88.51% pre-issue to around 70.84% post-issue.

Behari Lal Engineering IPO: Objectives of the issue

Only the fresh issue proceeds of ₹93 crore actually reach the company. The OFS money goes to selling shareholders. Fresh proceeds go toward new equipment and machinery at both manufacturing facilities, rooftop solar panels at each site, partial repayment of existing borrowings, and general corporate purposes.

About Behari Lal Engineering Limited

Incorporated in 1995, Behari Lal Engineering runs an integrated iron and steel manufacturing operation in Mandi Gobindgarh, Fatehgarh Sahib district, Punjab, a region known for its steel and rolling mill industry.

Products include metal rolls across grades like alloy cast steel and graphitic steel, engineering castings from 500 kg to 20 metric tonnes, alloy steel products, forging ingots, and shafts. End markets are steel, mining, aggregate crushing, power, and sugar.

As of late May 2026, the order book stood at close to ₹179 crore, which is reasonable near-term visibility for a business of this size. Five promoters from the Garg family run the company: Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg, and Bhuvnesh Garg.

Behari Lal Engineering financial performance

Revenue grew 6% in FY26. PAT grew 22%. That gap between top-line and bottom-line growth is the more interesting number. Margins improved meaningfully even without a sharp revenue jump. Borrowings stayed low throughout, with the slight FY26 uptick from a near-zero FY25 base.

Two recent steel sector listings offer a rough comparison. Rajputana Stainless listed at ₹122 with a P/E of 21.1x. VMS TMT listed at ₹99 with a P/E of 22.24x. Behari Lal Engineering at 18.65x sits below both, though product mix and scale differences make direct comparisons imprecise.

Strengths of Behari Lal Engineering IPO

• PAT grew 22% in FY26 against 6% revenue growth. Margins are improving, not just top-line
• ROE above 23% and ROCE above 27% are healthy for a manufacturing business
• Debt-to-equity of 0.06. Near-zero leverage gives the balance sheet significant room
• Order book of close to ₹179 crore as of May 2026 provides near-term revenue visibility
• Product range spans metal rolls, castings, alloy steel, and forgings, so it is not a single-product operation

Risks associated with Behari Lal Engineering IPO

• At 18.65x post-issue P/E and 3.63x price-to-book, the issue is priced for the company's current trajectory, not at a discount
• Revenue growth of 6% in FY26 was modest. Whether the margin expansion story continues without better top-line growth is worth watching
• OFS is the larger component at ₹208.62 crore versus the ₹93 crore fresh issue. Most proceeds go to existing shareholders
• The business operates in a narrow industrial niche. Demand is tied to broader infrastructure and industrial capex cycles
• Promoter holding drops nearly 18 percentage points post-issue, a meaningful dilution

Should you consider the Behari Lal Engineering IPO?

The fundamentals are clean. Low debt, improving margins, healthy return ratios, and an order book that gives some confidence around near-term revenue. The business has been around since 1995 and has built a track record worth looking at.

The valuation is not cheap. At 18.65x post-issue earnings and 3.63x book value, there is limited discount built in. Independent broker coverage has leaned toward subscription recommendations, with the common caveat that this suits medium-to-long-term holders more than those looking for a listing pop.

Read the RHP before applying. The OFS-heavy structure and the modest revenue growth in FY26 are the two things worth sitting with before bidding.

Conclusion

Behari Lal Engineering brings a low-debt, steady-growth engineering components business to market at ₹271 to ₹285, with bidding running August 12 to 14 and listing set for August 19. The margin improvement story in FY26 and the clean balance sheet are the positives. The valuation does not leave obvious room for error, and the OFS-heavy structure means most proceeds don't reach the company. How the market prices it at listing will be the real test.