Behari Lal Engineering Files for Rs 110 Crore IPO, Aims to Expand Operations
Behari Lal Engineering Ltd., a major metal roll producer in India, has filed draft papers with SEBI for an IPO. The offering includes a fresh issue of shares worth Rs 110 crore and an OFS of 28.56 lakh shares by existing shareholders. The company plans to list on NSE and BSE, with proceeds aimed at capital expenditure, debt repayment, and corporate purposes. Behari Lal Engineering, which caters to 10% of India's metal roll demand, reported revenue of Rs 507.90 crore and profit of Rs 52.90 crore in fiscal year 2025, showing significant growth from the previous year.
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Behari Lal Engineering Ltd., one of India's largest metal roll producers, has taken a significant step towards going public by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company aims to raise Rs 110 crore through fresh share issuance, along with an offer for sale (OFS) component.
IPO Structure and Listing Plans
The IPO comprises two main components:
- Fresh issue of shares worth Rs 110 crore
- Offer for Sale (OFS) of 28.56 lakh shares by existing shareholders
The OFS portion includes shares from:
- Director Rajesh Garg
- Director Lovlish Garg
- Promoter group Dinesh Kumar Garg HUF
Behari Lal Engineering plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company has appointed Emkay Global Financial Services and Systematix Corporate Services as the book-running lead managers for the IPO.
Utilization of IPO Proceeds
The funds raised through the IPO are earmarked for several key purposes:
- Capital expenditure for new equipment
- Debt repayment
- General corporate purposes
These allocations suggest that the company is focusing on expanding its production capabilities while also improving its financial position.
Company Overview and Financial Performance
Behari Lal Engineering is an integrated iron and steel manufacturing company that specializes in providing customized engineering solutions. The company has established itself as a significant player in the metal roll production sector, catering to approximately 10% of India's demand.
The company's financial performance has shown positive growth:
| Fiscal Year | Revenue (in Rs crore) | Profit (in Rs crore) |
|---|---|---|
| 2024 | 446.00 | 35.70 |
| 2025 | 507.90 | 52.90 |
This financial data indicates a year-on-year revenue growth of about 13.9% and a substantial profit increase of approximately 48.2%.
Market Position and Future Outlook
As one of India's largest metal roll producers, Behari Lal Engineering holds a strong position in the market. The company's ability to meet 10% of the country's demand underscores its significant role in the industry.
The decision to go public through an IPO suggests that the company is looking to capitalize on its market position and fuel further growth. The planned capital expenditure for new equipment indicates an intention to expand production capabilities, which could potentially increase the company's market share and revenue in the coming years.
Investors and industry observers will likely keep a close watch on Behari Lal Engineering's IPO progress and its potential impact on the iron and steel manufacturing sector in India.
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