Behari Lal Engineering IPO Day 3: Strong Subscription Continues with GMP at 28%—Is It Time to Invest?

The initial public offering (IPO) of Behari Lal Engineering, valued at Rs 302 crore, is set to close its bidding phase today, reflecting robust investor enthusiasm. The IPO includes a fresh issue of shares worth Rs 93 crore and an offer for sale (OFS) comprising 73.20 lakh equity shares amounting to approximately Rs 209 crore. The price band has been established between Rs 271 and Rs 285 per share. Notably, prior to the public subscription, the company garnered Rs 90.48 crore from anchor investors, indicating strong institutional backing, with major players like Tata AIA Life Insurance and PineBridge Global participating. The expected listing date on both the NSE and BSE is August 19, 2026.

The grey market reflects a positive sentiment surrounding the IPO, with the issue commanding a premium of Rs 80, equating to a 28% increase over the upper price band. This translates to an estimated listing price of around Rs 365 per share, providing a potential upside for investors. However, it is essential to remember that the grey market premium (GMP) serves as an unofficial market indicator and may not guarantee actual listing gains. The overall subscription figures further demonstrate investor confidence, with the IPO being oversubscribed 7.78 times by the end of Day 2, including a notable 9.36 times subscription in the retail segment.

For Indian investors, the Behari Lal Engineering IPO presents an intriguing opportunity, particularly with positive endorsements from analysts. Firms such as Anand Rathi and SBI Securities have advised a ‘Subscribe-Long Term’ approach, citing the company’s operational capabilities, established customer relationships, and plans for future expansion. The proceeds from the IPO are earmarked for capital expenditures, including installation of advanced machinery and renewable energy solutions, which could bolster long-term profitability. With Behari Lal Engineering being one of the largest producers of metal rolls in India, this IPO not only reflects a significant growth avenue for the company but also an option for investors looking to gain exposure in the manufacturing sector.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)