Behari Lal Engineering IPO Day 2: Issue booked 4.38x so far. Check GMP, review, key dates. Apply or not?

Behari Lal Engineering IPO subscription status: The Behari Lal Engineering IPO was subscribed 2.03 times on the first day of bidding on Wednesday, 12 August, indicating a positive response from investors.

The company has fixed the Behari Lal Engineering IPO price band at ₹271– ₹285 per equity share, with a face value of ₹10 per share. The three-day issue opened for subscription on 12 August and will close on 14 August. The anchor investor bidding took place on 11 August.

The Behari Lal Engineering IPO lot size is 52 equity shares, with investors allowed to bid in multiples of 52 shares thereafter.

Under the reservation structure, up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs) and at least 35% for retail investors.

The basis of allotment is expected to be finalised on 17 August, followed by refunds on 18 August. Shares are expected to be credited to successful investors' demat accounts on the same day, with the Behari Lal Engineering shares likely to list on the BSE and NSE on 19 August.

Ahead of the public issue, Behari Lal Engineering raised ₹90.48 crore from anchor investors on 11 August.

Behari Lal Engineering IPO GMP

Behari Lal Engineering IPO GMP today is +74. 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 ₹359 apiece, which is 25.96% higher than the IPO price of ₹285.

According to recent grey market activity over the past 8 sessions, the IPO's GMP is showing an upward trend today, suggesting expectations of a robust listing. Throughout this timeframe, the GMP fluctuated between ₹0.00 and ₹74, according to experts.

Behari Lal Engineering IPO review

Swastika Investmart said Behari Lal Engineering has demonstrated steady growth in both revenue and profitability during the reported periods. The company's EBITDA margin expanded from 13.67% in FY24 to 16.01% in FY25, then to 18.97% in FY26, while the PAT margin improved to 12.10%.

The brokerage noted that the company had an order book of ₹178.57 crore as of 31 May 2026, providing some visibility for future revenue. However, it believes the IPO appears to be fully priced, with no directly comparable listed peer available for a straightforward valuation assessment.

Swastika Investmart also highlighted high customer concentration and unhedged foreign exchange exposure as key risks that could affect the company's earnings. Given these factors, the brokerage said well-informed investors may consider the issue for the medium to long term.

SBICAP Securities recommended subscribing to the Behari Lal Engineering IPO, noting that the company plans to use the fresh issue proceeds to fund capital expenditure at its existing manufacturing facilities and support the development of its third plant.

The brokerage highlighted the company's focus on increasing the contribution of higher-value products to its sales mix, which, along with expanded capacity, is expected to support profitability as the business scales. At the upper price band of ₹285 per share, the IPO is valued at a FY26 P/E multiple of 18.7x based on the post-issue capital. SBICAP Securities has assigned a “SUBSCRIBE” rating to the issue at the cut-off price.

BP Equities said the company's improving profitability has been supported by a greater contribution from value-added products, while its net debt declined from ₹4.07 crore in FY24 to ₹1.66 crore in FY26, indicating a strengthening balance sheet. The brokerage noted that Behari Lal Engineering's diversified product portfolio, integrated manufacturing capabilities, improving profitability and low leverage provide healthy visibility for long-term growth. At the upper price band of ₹285, the issue is valued at a P/E multiple of 17.2x, based on FY26 diluted EPS of ₹16.56.

BP Equities believes the valuation is reasonable given the company's earnings growth, improving financial position and favourable long-term outlook for infrastructure and industrial capital expenditure, and has therefore recommended a “SUBSCRIBE” rating for long-term investors.

Behari Lal Engineering IPO details

The 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 by existing shareholders.

The company plans to deploy the net proceeds from the fresh issue primarily towards expanding and upgrading its manufacturing capacity. 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 for the issue, while MUFG Intime India Pvt. Ltd. is acting as the registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.