Behari Lal Engineering IPO Sees Strong Demand on Day 2 with 2x Subscription and Positive GMP: Should You Invest?
The Rs 302-crore initial public offering (IPO) of Behari Lal Engineering has generated significant investor interest as it enters its second day of bidding. The IPO includes 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 is set at Rs 271–Rs 285 per share, and as of now, the issue has been subscribed 2.02 times, with considerable demand from the retail segment, which saw a subscription rate of 2.70 times. The IPO will remain open for subscription until August 14, and share allotments are expected to be finalized on August 17, with a listing date targeted for August 19 on the NSE and BSE.
In the grey market, Behari Lal Engineering’s IPO is commanding a premium of Rs 74, or 26%, over the upper price band, suggesting strong market sentiment and expectations for robust listing performance. Based on the current grey market premium, the estimated listing price would be around Rs 359 per share. However, investors should exercise caution, as the grey market is unofficial and actual listing prices may differ from these estimates. The overall subscription status shows promising signs, with non-institutional investors and qualified institutional buyers also participating actively, albeit at slightly lower rates compared to retail investors.
The implications of this IPO for Indian investors are significant. Analysts, including those from Anand Rathi and SBI Securities, have issued positive ratings, recommending long-term subscriptions based on the company’s growth potential and operational capabilities. Behari Lal Engineering’s plans to allocate the fresh proceeds toward infrastructure expansion and the installation of rooftop solar panels suggest a commitment to sustainability alongside growth. As the company aims to enhance its existing facilities and expand its product offerings, this IPO represents an opportunity for investors looking to capitalize on the burgeoning metal industry in India, particularly given the anticipated benefits from strategic investments in capacity and product diversification.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)