Behari Lal Engineering IPO Day 3: GMP at 28%, subscription stays strong. Should you subscribe?

The Rs 302-crore initial public offering (IPO) of Behari Lal Engineering has entered its final day of bidding, backed by strong investor interest. In the grey market, the IPO is currently commanding a 28% premium, signalling expectations of a strong listing for the iron and steel manufacturing company.

On the second day of bidding, the issue was subscribed 7.78 times, against the 74.12 lakh shares on offer. The retail portion was subscribed 9.36 times, with bids received for 37.63 lakh shares.

The IPO consists of a fresh issue of shares worth Rs 93 crore and an offer for sale (OFS) of 73.20 lakh equity shares worth approximately Rs 209 crore. The price band has been set at Rs 271–Rs 285 per share.


A day before the IPO opened for public subscription, 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. The anchor book included Tata AIA Life Insurance Company, PineBridge Global Funds, Amicorp Capital (Mauritius) Ltd, WhiteOak Capital and Bandhan Mutual Fund.

The allotment 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 the NSE and the BSE on August 19, 2026.

Emkay Global Financial Services Ltd. is acting 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 generating considerable buzz in the grey market, with the issue commanding a GMP of Rs 80, translating into a 28% premium over the upper price band of Rs 285 per share. At the current GMP, the estimated listing price works out to around Rs 365 per share, suggesting a potential upside for investors from the IPO price.

That said, GMP is only an unofficial market indicator and should not be viewed as a guarantee of listing gains. The actual listing price could vary significantly depending on market conditions and investor sentiment on the listing day.

Behari Lal Engineering IPO Subscription Status:

The strong grey market sentiment is also reflected in the subscription figures. On Day 2, the IPO was subscribed 7.78 times overall, with bids pouring in for the 74.12 lakh shares on offer.

• Retail Individual Investors (RIIs): 9.36 times subscribed, with bids for 37.63 lakh shares
• Non-Institutional Investors (NIIs): 11.11 times subscribed, with bids for 16.12 lakh shares
• Qualified Institutional Buyers (QIBs): 2.22 times subscribed, with bids for 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 subscribe to the IPO of the company, which is one of India’s largest metal rolls producers. “Going ahead, the company intends to utilize fresh proceeds to fund capex at its existing facilities and is in 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.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)