Behari Lal Engineering IPO
Behari Lal Engineering LtdMainboard
This IPO has listed.
- Open date
- 12 Aug 2026
- Close date
- 14 Aug 2026
- Min. Investment
- ₹14,820
- Lot Size
- -
- Fresh Issue
- ₹93.00 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- -
Subscription rate
- Qualified Institutional Buyers165.33x
- Non-Institutional Investors165.32x
- Retail-Individual Investors53.27x
- Total108.44x
Schedule
- Completed: IPO open date12 Aug 2026
- Completed: IPO close date14 Aug 2026
- Completed: Allotment date17 Aug 2026
- Completed: Funds unblock or debit18 Aug 2026
- Completed: Tentative listing date19 Aug 2026
About
Promoter shareholding in Behari Lal Engineering Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Parkash Chand Garg | 27,98,160 | 7.17% | 27,98,160 | 6.61% |
| Rajesh Garg | 38,97,115 | 9.98% | 19,53,492 | 4.62% |
| Dinesh Garg | 40,72,195 | 10.43% | 40,72,195 | 9.63% |
| Lovlish Garg | 55,32,125 | 14.17% | 51,82,125 | 12.25% |
| Bhuvnesh Garg | 22,01,550 | 5.64% | 22,01,550 | 5.20% |
| Anju Garg | 36,86,865 | 9.44% | 36,86,865 | 8.72% |
| Dinesh Kumar Garg HUF | 29,67,125 | 7.60% | 28,17,125 | 6.66% |
| Yogita Garg | 33,59,600 | 8.61% | 12,15,977 | 2.87% |
| Kanav Garg | 31,77,750 | 8.14% | 31,77,750 | 7.51% |
| Rajesh Kumar Garg HUF | 19,66,120 | 5.04% | 19,66,120 | 4.65% |
| Lovlish Garg HUF | 6,95,000 | 1.78% | 6,95,000 | 1.64% |
| Pratibha Goyal | 1,98,880 | 0.51% | 1,98,880 | 0.47% |
| Ridhisha Achal Bansal | 1,000 | 0.00% | 1,000 | 0.00% |
Behari Lal Engineering IPO Strengths & Risks
- Long standing relationships with a large number of customers spread across a wide array of end-user industries with stringent qualification processes.
- Diversified product portfolio catering to varied application industries.
- Strategically located Manufacturing Facilities with advanced equipment and robust overlapping processes which enables high capacity utilisation.
- Robust presence in the steel manufacturing industry leveraging on the legacy and experience of our Promoters and strong domain expertise of our management team.
- Track record of financial performance and consistent growth.
- Risks Relating to the Business: The company generates significant revenues from its top 10 customers, and in Fiscals 2026, 2025 and 2024, revenue from the company's top 10 customers was Rs. 2,029.21 million, Rs. 2,027.16 million and Rs. 1,686.51 million constituting 38.00%, 39.91% and 37.81%, respectively, of its revenue from operations. The company does not enter into long term contracts with its customers and the loss of such customers or a significant reduction in the company's revenue from such customers will have a material adverse impact on its business and financial condition.
- Risks Relating to the Business: The company's success depends on its continuing relationship with the company's customers and its derives a significant majority of the company's revenue from repeat customers. In Fiscals 2026, 2025 and 2024, revenue from repeat customers was Rs. 4,522.77 million, Rs. 4,372.98 million and Rs. 3,570.50 million constituting 84.69%, 86.10% and 80.04%, respectively, of the company's revenue from operations. Loss of one or more of its repeat customers or reduction in their demand for the company's offerings could adversely affect its business, results of operation and financial conditions.
- Risks Relating to the Business: The company caters to diverse end use industries and customers in the automobile, infrastructure, Aggregate Crusher Manufacturer (ACM) and engineering (industrial equipment) which contributed an aggregate of Rs. 2,063.85 million, Rs. 1,104.50 million, Rs. 980.15 million and Rs. 899.96 million to the company's revenue from operations constituting 38.65%, 20.68%, 18.35% and 16.85% of its total revenue from operations during Fiscal 2026, respectively. Any adverse impact on these industries or result in the loss of customers in these end use industries could have an adverse effect on the company's business, revenue from operations and financial condition.
- Risks Relating to the Business: A substantial proportion of the company's sales is concentrated in India and sales to customers in India and its revenues from sales to customers in India was Rs. 4,860.47 million, Rs. 4,859.33 million, and Rs. 4,245.17 million constituting 91.02%, 95.67% and 95.17% of the company's revenue from operations in Fiscals 2026, 2025 and 2024. Any inability to maintain and grow its revenues from the company's sales in India may have an adverse effect on the company's business, financial condition, result of operation, cash flows and future business prospects.
- Risks Relating to the Business: The cost of raw materials, including through imports, constitutes the largest component of its expenses and cost of material consumed was Rs. 2,806.58 million, Rs. 2,716.46 million, and Rs. 2,745.21 million constituting 61.02%, 60.78% and 68.62%, of the company's total expenses during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Substantial delay or failures to procure necessary raw materials could have an adverse impact on its operations and the company's ability to meet its customer obligations which could adversely impact on the company's business and its revenue.
- Risks Relating to the Business: The company has dues which is outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on the company's reputation, business and financial condition.
- Risks Relating to the Business: The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company's business, results of operations and financial conditions. Conditions and restrictions imposed on the company by the agreements governing its indebtedness could adversely affect the company's ability to operates its business.
- Risks Relating to the Business: The company's Restated Financial Statements contain contingent liabilities aggregating Rs. 35.58 million for Fiscal 2026 and capital commitments aggregating Rs. 19.29 million for Fiscal 2026. If these contingent liabilities and capital commitments materialise, it may adversely affect its cash flows and results of operations.
- Risks Relating to the Business: The company is reliant on raw materials that are procured from third party suppliers with whom the company does not have long term contracts. Its procurement cost towards the company's top 10 suppliers during Fiscal 2026, 2025, and 2024 was Rs. 1,766.96 million, Rs. 1,385.04 million, and Rs. 1,583.14 million constituting 38.39%, 30.99%, and 39.57% of its total expenses, respectively. Failures to ensure a consistent supply of raw materials at commercially acceptable prices will adversely affect the company's business and financial condition.
- Risks Relating to the Business: The pricing in the steel industry is subject to market demand, volatility and economic conditions. Reduction in steel prices may have a material adverse impact on the company's business, results of operations, and financial conditions.
- Risks Relating to the Business: Purchase of raw materials, stock in trade and consumables such as scrap, ferro alloy, rolls, ingots and billets from the company's top 10 vendors was Rs. 1,766.96 million, Rs. 1,385.04 million and Rs. 1,583.14 million constituted 49.00%, 38.05% and 47.65%, of its total purchases in Fiscals 2026, 2025 and 2024, respectively. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on the company's business and its revenue.
- Risks Relating to the Business: Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business, revenue from manufacturing operations and financial condition.
- Risks Relating to the Business: The company is heavily reliant on its alloy steel products, metal rolls and engineering castings business segment which cumulatively contributed more than 90.00% to the company's revenue from operations in each of Fiscal 2026, Fiscal 2025 and Fiscal 2024.
- Risks Relating to the Business: Delays or defaults in customer payments and receivables may adversely impact the company's profits and cash flows.
- Risks Relating to the Business: The company's business is dependent on its ability to provide products in accordance with agreed specifications within contracted timelines. Failures to adhere to such requirements could result in the loss of business and reputation.
- Risks Relating to the Business: Exchange rate fluctuations could adversely affect the company's operations and increase its cost of manufacturing operations.
- Risks Relating to the Business: The company is heavily dependent on machinery and its operating processes for the company's operations. Any breakdown of its machinery or the company's operating systems will have a significant impact on its business, financial results and growth prospects. The company's success and financial condition will depends on its ability to maximise the company's manufacturing capacities.
- Risks Relating to the Business: Under-utilization of the company's currently operational production lines at its Manufacturing Facilities and an inability to effectively utilize the company's expanded manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
- Risks Relating to the Business: The company's current order book value is not necessarily indicative of future growth. Further, some of the orders that constitute its current order book could be cancelled, put in abeyance, delayed, or not paid for by the company's customers, which could adversely affect its financial condition.
- Risks Relating to the Business: There are certain outstanding legal proceedings involving the Company, and Promoter, which, if determined against it, could have a material adverse effect on its business, cash flows, financial condition and results of operations.
- Risks Relating to the Business: The company's operations is subject to manufacturing risk and causing fatal injury to personnel including death and destruction of property and consequent imposition of civil and criminal penalties.
- Risks Relating to the Business: The company's future success will depends on its ability to effectively implement the company's business and growth strategies. Its failures in effectively implementing the company's business and growth strategies may adversely affect its results of operations.
- Risks Relating to the Business: The company's operations is dependent on its product development capabilities and if the company is unable to continually develop new products and grades, its ability to grow, and, or, compete effectively, might be compromised, which would have an adverse impact on the company's business and financial condition.
- Risks Relating to the Business: There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- Risks Relating to the Business: The Company has filed statutory forms with incorrect information in the past and there has been variation in the corporate records of the Company. Its cannot assure you that the company will not be subject to penalties or that no other action will be initiated against the company in this regard.
- Risks Relating to the Business: The company's business operations requires significant working capital. If its experience insufficient cash flows to meet required payments on the company's working capital requirements, there may be an adverse effect on the results of its operations.
- Risks Relating to the Business: The company's contracts with its customers could include warranty provisions and penalty/damages which if invoked, could have an adverse effect on the company's business, result of operations and financial condition.
- Risks Relating to the Business: The company is dependent on its Promoters, Key Managerial Personnel, and members of Senior Management. Failures to retain or replace them will adversely affect the company's business.
- Risks Relating to the Business: The company does not has documentary evidence for the educational qualifications of 2 of its Promoters who are also the Directors of the Company, included in the `Its Management' in this Red Herring Prospectus.
- Risks Relating to the Business: The Company has recently commenced construction for its third manufacturing facility. Any unanticipated delays in construction or the company's failure to build the new manufacturing facility may result in cost overruns and could have an adverse impact on its business, reputation, financial condition, and results of operations.
- Risks Relating to the Business: The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions has not been entered into with related parties and that such transactions will not have an adverse effect on the company's financial conditions and result of operations.
- Risks Relating to the Business: The company has not yet placed orders in relation to the capital expenditure for the purchase of equipment and machinery which are proposed to be funded out of the Net Proceeds. If there is any delay in placing the orders, or in the event the vendor is not able to provide the equipment in a timely manner, or at all, it may result in time and cost overruns and the company's business, prospects and results of operations may be adversely affected.
- Risks Relating to the Business: The company operates in a competitive environment. Competition from existing players and new entrants and consequent pricing pressures and its inability to compete effectively could have a material adverse effect on the company's operating margins, business growth and prospects, financial condition and results of operations and may lead to a lower market share.
- Risks Relating to the Business: The company faces certain risks and challenges that are specific to the industry in which its operates. If any or a combination of these risks and challenges materialise it could have a material adverse effect on the company's business, results of operations and financial condition.
- Risks Relating to the Business: The company is completely reliant on third-party logistics service providers for transport of raw materials and finished products. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, its freight and forwarding charges were Rs. 84.25 million, Rs. 90.28 million and Rs. 52.92 million constituting 1.83%, 2.02% and 1.32%, respectively, of the company's total expenses.
- Risks Relating to the Business: The company has availed unsecured loans including from related parties which are unsecured and may be recalled at any time. If such loans are recalled, its may need to find adequate funding to replace such loans which may not be available on commercially acceptable terms or at all.
- Risks Relating to the Business: Inability to obtain or protect the company's intellectual property rights may adversely affect its reputation and the company's business.
- Risks Relating to the Business: Failures to meet quality standards required by the company's customers may lead to cancellation of existing and future orders and have an adverse impact on its business operations.
- Risks Relating to the Business: Any failures to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for the company's operations from time to time may adversely affect its business.
- Risks Relating to the Business: The company's manufacturing operations is power and fuel intensive. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's power and fuel expenses was Rs. 351.46 million, Rs. 326.98 million and Rs. 236.82 million constituting 7.64, 7.32% and 5.92%, respectively of its total expenses. Significant increase in power could adversely affect the company's results of operation and profitability.
- Risks Relating to the Business: The company's employee benefits expense is one of the larger components of its fixed operating costs. An increase in employee benefits expense could reduce the company's profitability.
- Risks Relating to the Business: If the company is unable to attract new customers or sell additional products to its existing customers, the company's revenue growth will be adversely affected.
- Risks Relating to the Business: The company is dependent on its Manufacturing Facilities, which are situated in Mandi Gobindgarh, Punjab. Further, the company has recently commenced construction for its third manufacturing facility in Mandi Gobindgarh, Punjab, as well. The company is subject to the risks associated with a single location manufacturing facilities.
- Risks Relating to the Business: The company's business benefits from certain subsidies towards electricity dues, GST refund etc. Withdrawal of or reduction in these subsidies could have an adverse impact on its financials.
- Risks Relating to the Business: Any downgrade of the company's credit rating facilities could have an impact on its ability to obtain externing debt funding and cost of debt funds which could have an adverse impact on the company's financial condition.
- Risks Relating to the Business: The company may need to seek additional financing in the future to support its growth strategies. Any failures to raise additional financing could have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: Conflicts of interest may arise out of common pursuit between the Company, Group Company and entities forming part of its Promoter Group.
- Risks Relating to the Business: The majority of the company's directors including its independent directors does not has any experience of being a director in a listed company. This may requires them to divert their attention from its business concerns to understand the detailed operations of a listed company.
- Risks Relating to the Business: The industry report prepared by CRISIL, which the company has commissioned and paid for, identifies certain risks and challenges associated with the industry in which its operates. If these risks and challenges materialise, it could adversely affect the company's business, financial condition and prospects.
- Risks Relating to the Business: The company's Promoters, who is also the Selling Shareholders, have subscribed to, and purchased, Equity Shares, at a price which could be below the Offer Price. The average cost of acquisition of Equity Shares by the company's Promoters could also be lower than the Offer Price.
- Risks Relating to the Business: The company's operations is reliant on human resources. Any disruption in steady and regular supply of workforce for its operations could have an adverse impact on the company's business operations and financial conditions.
- Risks Relating to the Business: The company's Promoters and Promoter Group will, even after the completion of the Offer, continue to be its largest Shareholders and can influence the outcome of resolutions, which may potentially involve conflict of interest with the other Shareholders.
- Risks Relating to the Business: Health, safety and environmental matters, including compliance with environmental laws and remediation of contamination, could result in substantially increased capital requirements and operating costs.
- Risks Relating to the Business: Inability to maintain adequate internal controls may affect the company's ability to effectively manage its operations which may adversely affect the company's business operations.
- Risks Relating to the Business: The company's Promoters, some of its Directors, Key Managerial Personnel and Senior Management have interests in the Company other than reimbursement of expenses incurred and normal remuneration or benefits.
- Risks Relating to the Business: The company has availed on lease, the use of certain properties from which its operates some of the company's business operations, from certain members of its Promoter Group. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on the same or similar commercial terms.
- Risks Relating to the Business: An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- Risks Relating to the Business: If the company is subject to any frauds, theft, or embezzlement by its employees, vendors, suppliers, it could adversely affect the company's reputation, results of operations, financial condition and cash flows.
- Risks Relating to the Business: The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
- Risks Relating to the Business: Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- Risks Relating to the Business: The Company has not paid any dividends on Equity Shares in the last 3 Fiscals and during the current Fiscal. There can be no assurance that the Company will be in a position to pay dividends in the future.
- Risks Relating to the Business: Failures to keep the company's technical knowledge confidential could erode its competitive advantage.
- Risks Relating to the Business: The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution and are based on management estimates.
- Risks Relating to the Business: This Red Herring Prospectus contains information from an industry report prepared by CRISIL which the company has commissioned and paid for in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- Risks Relating to the Business: The requirements of being a publicly listed company may strain the Company's resources.
- Risks Relating to the Business: Certain non-GAAP financial measures and certain other statistical information relating to the company's operations and financial performance like Earnings before interest, tax, depreciation and amortization expenses (EBITDA), EBITDA margin, return on capital employed (ROCE), return on equity (ROE), inventory turnover ratio and debt to equity, have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
