Behari Lal Engineering

Incorporated in 1995, Behari Lal Engineering Limited manufactures precision-engineered components for critical industrial applications. Its product portfolio spans metal rolls across grades such as alloy cast steel, alloy steel base adamite, graphitic steel, and S.G. iron pearlitic, engineering castings ranging from 500 kg to 20 MT for the steel, iron, mining, aggregate crushing, power, and sugar industries, alloy steel products including carbon, alloy, and stainless steel bars in sizes from 6 mm to 230 mm, and forging ingots and forged shafts and blocks used as raw material in open-die and closed-die forging.

The company's manufacturing operations comprise two units located in Mandi Gobindgarh, Punjab, supported by advanced equipment and overlapping production processes. As of March 31, 2026, the company served 1,825 domestic and international customers, including Amba Shakti Industries, BMW Industries, Shyam Metallics and Energy, Laxcon Steels, MSP Steel & Power, Jai Balaji Industries, Propel Industries, and Metso India. As of May 31, 2026, its order book stood at ₹178.57 crore, supporting near-term revenue visibility.

The company is promoted by Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg, and Bhuvnesh Garg. Its competitive strengths include long-standing relationships across a wide array of end-user industries, a diversified product portfolio, strategically located manufacturing facilities with advanced equipment, an experienced promoter and management team, and a consistent track record of financial performance.

The Behari Lal Engineering IPO is a bookbuilt mainboard issue aggregating up to ₹302 crore, comprising a fresh issue of shares worth up to ₹93 crore and an offer for sale of up to ₹209 crore, the latter making up the bulk of the issue across five promoter selling shareholders and one corporate entity, SG Tech Engineering Pvt. Ltd. The issue is priced in a band of ₹271 to ₹285 per equity share, with a lot size of 52 shares, and will open on August 12, 2026, closing on August 14, 2026, with listing expected on August 19, 2026 on both the BSE and NSE.

Net proceeds from the fresh issue are earmarked primarily for capital expenditure on new equipment and machinery at its two manufacturing facilities, worth a combined ₹56.24 crore, along with rooftop solar panel installations worth ₹6.80 crore and a small loan repayment of ₹0.57 crore, with the remainder allocated to general corporate purposes. The company has shown steady financial growth, with total income rising from ₹449.96 crore in FY24 to ₹546.52 crore in FY26, and profit after tax growing from ₹35.79 crore to ₹64.64 crore over the same period.

At the upper price band, the issue is priced at a post-issue P/E of 18.65 times FY26 earnings, with a Return on Net Worth of 21.12% and a Price to Book Value of 3.63 times, reflecting a reasonably valued issue supported by a healthy return profile and a Debt/Equity ratio of just 0.06, indicating a largely debt-free balance sheet. Key strengths cited include long-standing customer relationships across diverse end-user industries, a diversified product portfolio, and strategically located manufacturing facilities. Key risks include the issue's heavy tilt toward an offer-for-sale structure that returns limited fresh capital to company operations, and exposure to cyclicality in the broader steel and industrial manufacturing sector. Investors may find it useful to benchmark this issue against other recently listed steel and engineering-sector IPOs when evaluating its relative valuation.