Behari Lal Engineering opens ₹302 crore IPO with 23% grey market premium
The Indian manufacturer has launched its public listing to fund capacity expansion, drawing early retail interest and strong grey market pricing despite a slow start from institutional buyers.
Bidding for the initial public offering of Behari Lal Engineering opened today, giving investors a three-day window to subscribe to the ₹302 crore issue before it closes on 14 August 2026. The company has set a price band of ₹271 to ₹285 per equity share, with the public offer comprising a ₹93 crore fresh issuance and a ₹209 crore offer for sale.
Early trading data shows a measured start to the book-building process, with the overall issue booked 0.31 times by mid-morning. Retail investors led the early demand by subscribing to 0.48 times their allocated portion, while non-institutional investors filled 0.30 times and qualified institutional buyers had not yet placed any bids.
Despite the slow institutional start, unofficial market indicators point to strong listing expectations among traders. Shares are currently changing hands at a grey market premium of ₹67, signaling a potential listing gain of roughly 23% above the upper price band when the stock officially debuts on the BSE and NSE exchanges on 19 August 2026.
Proceeds from the fresh issue will be directed toward capital expenditure at existing facilities and the construction of a third manufacturing plant. This expansion strategy is backed by steadily improving profitability metrics, with the company’s EBITDA margin widening from 13.67% in FY24 to 18.97% in FY26, while its net profit margin grew from 8.02% to 12.10% over the same period.
At the top end of the price band, the listing values the company at a post-issue price-to-earnings multiple of 18.7. Mahesh M. Ojha, vice president of research and business development at KC Securities, noted that this valuation appears reasonable given the company's growth profile, adding that capacity expansion should improve operating leverage and product mix over the medium term.
Brokerage Swastika Investmart also recommended applying for the issue, citing steady revenue growth and a healthy order book of ₹178.57 crore as of May 2026. However,
