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Shares of Behari Lal Engineering Ltd made a strong debut on Indian stock exchanges on August 19, listing at INR 458 on the BSE and INR 465 on the NSE against an issue price of INR 285. The listings represented premiums of 60.70% and 63.15%, respectively, giving the company a market valuation of INR 2,135.22 crore. The company’s INR 302-crore initial public offering was subscribed 108.44 times on the final day of bidding. Behari Lal Engineering operates manufacturing facilities in Mandi Gobindgarh and is expanding with a third facility in Fatehgarh Sahib, Punjab.
Shares of Behari Lal Engineering Ltd made a strong debut on Indian stock exchanges on August 19, listing at a substantial premium to the company’s IPO price as investor demand remained high for the integrated iron and steel manufacturer. The stock opened at INR 458 on the BSE, 60.70% above the issue price of INR 285, while it debuted at INR 465 on the NSE, representing a 63.15% premium.
Following the listing, the company’s market valuation stood at approximately INR 2,135.22 crore. The market debut came after strong demand for the company’s initial public offering, which was subscribed 108.44 times on the final day of bidding on August 14.
The company had fixed the IPO price band at INR 271–285 per equity share. The public issue had a total size of approximately INR 302 crore, comprising a fresh issue of shares worth up to INR 93 crore and an Offer for Sale involving up to 73.20 lakh equity shares.
Proceeds from the fresh issue are earmarked for capacity and infrastructure-related expenditure at the company’s manufacturing operations. Behari Lal Engineering plans to purchase and install equipment and machinery, including computers and peripherals, along with undertaking associated civil works at its manufacturing facilities.
A portion of the proceeds is also intended for the installation of rooftop solar panels at the company’s two existing facilities. The company plans to use part of the funds for repayment or pre-payment of certain borrowings, with the remaining proceeds allocated towards general corporate purposes.
Behari Lal Engineering currently operates two manufacturing facilities at Mandi Gobindgarh in Punjab, an established industrial centre for steel and engineering activity. The company has also recently started construction of a third manufacturing facility in Fatehgarh Sahib district, expanding its manufacturing footprint within the state.
The company manufactures a range of products used across industrial sectors, including metal rolls, engineering castings, alloy steel products and forging ingots. Its customer industries include steel, power and heavy engineering, where these products are used in manufacturing and industrial applications.
The strong subscription to the IPO preceded the company’s stock market debut and reflected substantial demand during the issue period. The issue was open within the INR 271–285 price band, with the final issue price fixed at the upper end of the range at INR 285.
The fresh capital is expected to support the company’s planned investment in manufacturing equipment and related infrastructure, while the proposed solar installations form part of its planned expenditure at its existing facilities.
With the addition of the Fatehgarh Sahib facility to its two operational plants in Mandi Gobindgarh, Behari Lal Engineering is expanding its manufacturing capacity in Punjab. The company’s listing provides it with access to the public equity market following the completion of its INR 302-crore IPO.
Source PTI
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