Behari Lal Engineering IPO listing tomorrow: Here’s what GMP hints ahead of debut

Behari Lal Engineering IPO listing: Shares of Behari Lal Engineering are slated to list in the Indian stock market tomorrow (Wednesday, 19 August).

Behari Lal Engineering IPO allotment was finalised yesterday (Monday, 17 August). Those who have been allocated shares can expect them to be credited to their demat accounts today, Tuesday, 18 August. Those who have not yet received their shares can also expect to receive the refund today.

The integrated iron and steel manufacturing company launched its IPO for subscription from Wednesday, 12 August, to Friday, 14 July. By the conclusion of the bidding period, the offering received a healthy response, particularly from non-institutional investors (NIIs) who subscribed to their portion 165.32 times. Qualified institutional buyers (QIBs) quota was booked 165.33 times.

Retail investors' segment showed a subscription rate of 53.27 times. Notably, on the third day of the offer, Behari Lal Engineering IPO subscription status stood at 108.44 times, as reported by the BSE.

Behari Lal Engineering IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Behari Lal Engineering IPO price band was fixed at ₹271 to ₹285 per equity share, with a face value of ₹10. Investors could apply for the mainboard IPO in lot sizes of 52 equity shares and in multiples of 52 equity shares thereafter.

Behari Lal Engineering IPO GMP today

Behari Lal Engineering IPO GMP today is +105. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Behari Lal Engineering share was ₹390 apiece, which is 36.84% higher than the IPO price of ₹285.

Based on grey market activity over the past 13 sessions, the IPO's GMP is trending upward today, suggesting strong listing expectations. Throughout this period, the GMP fluctuated between ₹0.00 and ₹105, according to experts.

Behari Lal Engineering IPO details

Behari Lal Engineering IPO comprises a fresh issue of equity shares worth ₹93 crore and an offer for sale (OFS) of 73.20 lakh equity shares.

The company plans to utilise the net proceeds from the fresh issue primarily towards capital expenditure to expand and upgrade its manufacturing capabilities. The funds will be used to purchase and install new machinery and equipment, along with computers, printers, and other peripherals, and to undertake associated civil works at its two manufacturing facilities in Mandi Gobindgarh, Punjab.

The company also plans to install rooftop solar panels at both manufacturing facilities as part of its expansion and energy-efficiency initiatives.

A portion of the proceeds will be used to repay or prepay certain borrowings, while the remaining funds will be allocated to general corporate purposes.

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

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