Lalbaba Engineering Files for Rs 1,000 Crore IPO, Aims to Fuel Expansion
Lalbaba Engineering Ltd., a West Bengal-based engineering solutions company, has filed its DRHP with SEBI for a Rs 1,000 crore IPO. The offering includes a fresh issue of Rs 630 crore and an OFS of Rs 370 crore. Funds will be used for expanding the Haldia facility, debt repayment, and general corporate purposes. The company specializes in seamless tubes, precision forgings, and integrated rail systems, serving both domestic and international markets. Lalbaba Engineering reported strong financial growth with a 28.70% increase in revenue and a 59.50% rise in profit for FY2025. IIFL Capital Services, Motilal Oswal Investment Advisors, and Nuvama Wealth Management are the book-running lead managers for the IPO.
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Lalbaba Engineering Ltd., a West Bengal-based engineering solutions company, has taken a significant step towards going public by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise Rs 1,000 crore through an initial public offering (IPO), signaling its ambitions for growth and expansion.
IPO Structure and Fundraising
The proposed IPO comprises two components:
- Fresh Issue: Rs 630 crore
- Offer-for-Sale (OFS): Rs 370 crore by promoter shareholders
Additionally, Lalbaba Engineering is considering a pre-IPO placement of up to Rs 126 crore, which could potentially reduce the size of the fresh issue.
Utilization of Funds
The company has outlined clear objectives for the funds raised through the IPO:
- Expansion of Haldia Facility: Rs 271.20 crore
- Debt Repayment: Rs 209.00 crore
- General Corporate Purposes: Remaining amount
Company Profile
Lalbaba Engineering specializes in manufacturing:
- Seamless tubes
- Precision forgings
- Integrated rail systems
The company operates across three facilities and caters to both domestic and international markets, including the United States, Canada, Mexico, and the United Arab Emirates.
Financial Performance
Lalbaba Engineering has demonstrated strong financial growth:
| Metric | Fiscal Year 2025 | Year-on-Year Growth |
|---|---|---|
| Revenue from Operations | Rs 771.61 crore | 28.70% |
| Profit | Rs 42.44 crore | 59.50% |
IPO Management
The book-running lead managers for this IPO are:
- IIFL Capital Services
- Motilal Oswal Investment Advisors
- Nuvama Wealth Management
This IPO represents a significant milestone for Lalbaba Engineering, potentially providing the company with the capital needed to fuel its expansion plans and strengthen its market position in the engineering solutions sector.
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