Behari Lal Engineering Shares Soar 61% On Debut

Mumbai, August 19: Behari Lal Engineering shares made a strong debut on the stock exchanges on Wednesday, August 19, with the stock listing at a premium of more than 60% over its IPO price. The shares opened at Rs 460 on the NSE, marking a 61.40% premium over the issue price of Rs 285. On the BSE, the stock debuted at Rs 458, representing a 60.70% premium. 

The strong listing came despite a weak broader market, highlighting robust investor interest in the Punjab-based iron and steel manufacturer following its highly subscribed public issue. 

IPO Receives Over 100 Times Subscription 

The strong debut followed an overwhelming response to Behari Lal Engineering’s Rs 301.62-crore initial public offering. The issue, which was open for subscription between August 12 and Au gust 14, was subscribed 108.44 times during the three-day bidding period. 

The IPO received bids for more than 80.38 crore shares against 74.12 lakh shares on offer. Qualified institutional buyers and non-institutional investors subscribed around 165 times their respective portions, while the retail portion was subscribed 53.27 times. 

The company had fixed the IPO price band at Rs 271-285 per share, with the issue ultimately priced at the upper end of the range. 

IPO Structure, Anchor Investors 

Stock soared on debut after strong IPO. Source: NSE 

The IPO comprised a fresh issue of shares worth Rs 93 crore and an offer for sale of 73.2 lakh shares worth around Rs 208.62 crore. 

Ahead of the public issue, the company raised Rs 90.48 crore from nine anchor investors through the allotment of 31.74 lakh shares at Rs 285 apiece. WhiteOak Capital Asset Management was the largest anchor investor, receiving 7.01 lakh shares across three schemes. 

Bandhan Mutual Fund was allotted 4.91 lakh shares, while 360 ONE acquired 4.56 lakh shares. 

How Behari Lal Engineering Will Use IPO Funds 

The company plans to use a significant portion of the fresh issue proceeds to expand and upgrade its manufacturing capabilities. 

Around Rs 63 crore has been earmarked for purchasing and installing new equipment and machinery, including rooftop solar panels, at its manufacturing facilities in Salani and Turan villages in Punjab. 

The company has also allocated around Rs 57 lakh towards repayment or pre-payment of borrowings, with the remaining proceeds intended for general corporate purposes. 

What Does Behari Lal Engineering Do? 

Behari Lal Engineering is an integrated iron and steel manufacturer based in Punjab. The company manufactures customised and precision-engineered products for industrial customers. 

Its portfolio includes metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts, among other products. The company has been operating since 1995 and caters to industrial applications requiring specialised steel and engineering products. 

What Investors Should Watch 

The sharp listing gain has already pushed the stock significantly above its IPO price, making future business execution increasingly important for sustaining the valuation. 

Investors will track the company’s ability to execute its planned capacity expansion, improve its product mix and increase the contribution of higher-value products. The company’s investments in new machinery and solar infrastructure are also expected to support operational efficiency. 

With the stock debuting more than 61% above its IPO price, Behari Lal Engineering has delivered a strong start on the bourses. However, after the sharp initial gain, its longer-term performance will depend on earnings growth, capacity utilisation and the successful execution of its expansion plans. 

Source

• https://www.nseindia.com/get-quote/equity/BLEL/Behari-Lal-Engineering-Limited