Behari Lal Engineering IPO Day 2: GMP signals decent listing, issue subscribed over 2x. Should you subscribe?

The Rs 302-crore initial public offering (IPO) of Behari Lal Engineering entered its second day of bidding with strong investor interest. In the grey market, the IPO is currently trading at a 26% premium, indicating expectations of a strong listing for the iron and steel manufacturing company.

On the first day, the issue was subscribed 2.02 times against the 74.12 lakh shares on offer. The retail portion was subscribed 2.70 times, with bids received for 37.63 lakh shares.

The IPO comprises a fresh issue of shares worth Rs 93 crore and an offer for sale (OFS) of 73.20 lakh equity shares, amounting to approximately Rs 209 crore. The price band has been fixed at Rs 271–Rs 285 per share. The issue will remain open for subscription until August 14.


A day before the IPO opened for public bidding, Behari Lal Engineering raised Rs 90.48 crore from anchor investors. The company allotted 31.75 lakh equity shares to anchor investors at Rs 285 per share. Participants in the anchor book included Tata AIA Life Insurance Company, PineBridge Global Funds, Amicorp Capital (Mauritius) Ltd, WhiteOak Capital and Bandhan Mutual Fund.

The allotment of shares for the Behari Lal Engineering IPO is expected to be finalized on August 17, 2026. The company’s shares are likely to be listed on both the NSE and BSE on August 19, 2026.

Emkay Global Financial Services Ltd. is serving as the book-running lead manager for the issue, while MUFG Intime India Pvt. Ltd. is the registrar.

Behari Lal Engineering IPO GMP
The Behari Lal Engineering IPO is commanding a grey market premium (GMP) of Rs 74, or 26%, over the upper price band of Rs 285. Based on the current GMP, the estimated listing price stands at around Rs 359 per share.

However, investors should note that the grey market is unofficial, and the actual listing price can differ significantly from GMP-based estimates.

Behari Lal Engineering IPO subscription status
On Day 1, the overall issue was subscribed 2.03 times against the 74.12 lakh shares on offer.

Retail Individual Investors (RIIs): 2.70 times against 37.63 lakh shares

Non-Institutional Investors (NIIs): 2.11 times against 16.12 lakh shares

Qualified Institutional Buyers (QIBs): 73% against 20.36 lakh shares

How will the IPO proceeds be used?
Behari Lal Engineering plans to use the proceeds from the fresh issue for purchasing and installing equipment and machinery, including computers and peripherals, and related civil work at its manufacturing facilities.

Funds will also be used for installing rooftop solar panels at both facilities, repayment or pre-payment of certain borrowings and general corporate purposes.

Should you subscribe to Behari Lal Engineering IPO?
Anand Rathi maintained a ‘Subscribe-Long Term’ rating for Behari Lal Engineering’s maiden public issue, believing that the IPO is fairly priced. The company benefits from in- house engineering, design and material development capabilities, along with stringent quality and customer qualification processes that support its presence across critical industrial applications. Its integrated manufacturing setup enables it to serve diverse end-use industries, while long-standing customer relationships and a broad product portfolio provide a degree of business resilience, it added.

SBI Securities also recommended investors to subscribe to the IPO of the company, which is one of India’s largest metal roll producers. “Going ahead, the company intends to utilize fresh proceeds to fund capex at its existing facilities and is in the process of setting up the third manufacturing facility. The company continues to focus on expanding the share of higher-value products in its sales mix, which combined with the expanded capacities shall result in improved profitability with scale,” it added.

Behari Lal Engineering operates two manufacturing facilities at Mandi Gobindgarh in Punjab and has recently commenced construction of a third facility in Fatehgarh Sahib district.

The company manufactures metal rolls, engineering castings, alloy steel products and forging ingots for industries including steel, power and heavy engineering.

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