Lalbaba Engineering Files ₹1,000 Crore IPO to Fund Expansion and Debt Repayment

Mumbai, September 30, 2025 – Lalbaba Engineering Limited has submitted draft papers for an initial public offering (IPO) of up to ₹1,000 crore. The issue consists of a fresh issue of ₹630 crore towards expansion and an offer for sale (OFS) of ₹370 crore by the existing promoters and group shareholders of the promoters. The equity shares of the company will be listed on both NSE and BSE with face value of ₹5 per share. The book running lead managers for the IPO include IIFL Capital Services, Motilal Oswal Investment Advisors, and Nuvama Wealth Management, while the registrar will be MUFG Intime India Private Limited.

Lalbaba Engineering IPO Structure and Allocation

The IPO has been structured with a fresh issue and an OFS. The fresh proceeds of the issue are intended to be used mainly for financing capital expenditure for increasing the size of the Haldia manufacturing facility, approximating ₹271.20 crore, and for repayment or prepayment of certain borrowings of ₹209 crore. The remaining net proceeds will be applied towards general corporate purposes. Share allotment will be through the normal book-building process, with not more than 50 percent to Qualified Institutional Buyers (QIBs), minimum 15 percent to Non-Institutional Investors (NIIs), and minimum 35 percent to retail investors, as far as valid bids are received.

Lalbaba Engineering IPO Company Background

Lalbaba Engineering is a leading engineering solution company involved in the production of high-performance seamless tubes, precision forgings, and integrated rail systems. Its products cater to major sectors such as railways, automotive, energy, and industrial infrastructure. On August 31, 2025, the company is India’s largest manufacturer of cold-finished seamless tubes and second-largest overall manufacturer in cold-finished steel tubes on an installed capacity basis, as per a company-ordered CRISIL report.

Lalbaba Engineering IPO Financial Performance

On the basis of restated consolidated financials, Lalbaba Engineering posted revenue from operations of ₹771.61 crore during FY25 with a profit after tax of ₹42.44 crore. Net worth remained at ₹181.63 crore, while borrowings totaled ₹264.72 crore. Earnings per share were ₹4.35 on a basic and ₹3.99 on a diluted basis.

Lalbaba Engineering IPO Promoters and Shareholding

The promoters are LBIC Engineering Pvt Ltd and promoter individual shareholders Kishan Dhanuka, Amit Dhanuka, Nikunj Dhanuka, and Nishit Dhanuka. The OFS enables these promoters to offload part of their shares, yet retain a high stake after listing.

About the Company

Its India headquarters is home to Lalbaba Engineering, which is known for engineering superiority and high-capacity manufacturing. The IPO will help the company raise capital to expand Haldia facility, lower debt, and consolidate its position as a top seamless tubes and precision engineering component supplier for critical infrastructure industries.

Notes: Key details are drawn from the company’s filed draft document, including the front pages, summary, objects, financials, and offer structure sections.

REF: https://nsearchives.nseindia.com/corporate/Registration_29092025224924_LalbabaEngineeringLimitedDRHP.pdf

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