One of India’s largest metal roll producers opens its Rs 301.62 crore mainboard issue on August 12
Behari Lal Engineering Ltd. (BLEL) sits at a specialised corner of the Indian iron and steel industry. It is not a bulk steel producer competing on tonnage — it is a customised engineering solutions company that makes precision-engineered components for critical industrial applications. Think of it as a specialist metal workshop for large industrial customers, rather than a commodity steel supplier.
The company has four main product lines. Metal Rolls make up around 26% of FY26 revenue — these are the large cylinders used by rolling mills to shape steel into finished products like TMT rebars and structural steel. BLEL manufactures them across various grades including alloy cast steel, alloy steel base adamite, graphitic steel, S.G. iron pearlitic, S.G. iron bainitic and forged rolls. According to CRISIL, this is where BLEL holds one of the largest positions in India, meeting 10-11.5% of the country’s demand in FY26.
Engineering Castings contribute around 20% of revenue. These are large moulded metal components — anywhere from 500 kg to 20 metric tonnes — used in industries like steel, iron, mining, aggregate crushers, power and sugar.
Alloy Steel Products are the biggest contributor at around 46% of FY26 revenue. BLEL manufactures carbon, alloy and stainless steel bars in various sections — rounds, round-corner squares, flats and hex — with widths from 6 mm to 230 mm. It has recently added tool steel and valve steel.
Forging Ingots and Forged Shafts round off the portfolio. These are semi-finished steel products used in critical downstream forging applications across automotive, aerospace, oil and gas, energy and heavy engineering.
The business is built on over two decades of manufacturing experience and a fully integrated modern setup — digital steel melting shop with ladle refining furnace (LRF), vacuum degassing (VD), foundry, heat treatment, machine shops and rolling mills. The end-industry mix is genuinely diversified — automobile, steel, mining, infrastructure, power, aerospace and defence, and cement.
BLEL has served 1,825 customers as of March 31, 2026. The customer list reads like a who’s-who of Indian steel and industrial companies — Amba Shakti, BMW Industries, Shyam Metallics, Jai Balaji, KL Rathi Steels, MSP Steel, Metso India, SRMB Srijan, Shyam Steel and Vardhman Special Steels, among others. Since April 2024, the company has also exported to 21 countries across 5 continents — including the US, Germany, France, Brazil, Mexico, UAE, and several African markets.
As of May 31, 2026, the order book stood at Rs 178.57 crore, giving reasonable forward visibility. Headcount was 667 payroll employees and 359 contract workers.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 12, 2026 |
| Issue Closes | August 14, 2026 |
| Listing (Tentative) | August 19, 2026 (BSE, NSE) |
| Price Band | Rs 271 – Rs 285 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 301.62 crore |
| Fresh Issue | Rs 93.00 crore (approx. 32.63 lakh shares) |
| OFS | Rs 208.62 crore (73,20,001 shares) |
| Lot Size | 52 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,820 |
| Post-IPO Market Cap | Rs 1,205.62 crore |
| IPO Constitutes | 25.02% of post-IPO equity |
| BRLMs | Emkay Global Financial Services, Systematix Corporate Services |
| Registrar | MUFG Intime India Pvt. Ltd. |
From the fresh proceeds, Rs 63.04 crore is earmarked for capex on new machinery and equipment plus rooftop solar panels at both plants, Rs 0.57 crore for repayment or prepayment of borrowings, and the balance for general corporate purposes. The rooftop solar addition is a small but sensible efficiency move.
Post-IPO, paid-up equity moves from Rs 39.04 crore to Rs 42.30 crore. Note that the OFS is significantly larger than the fresh issue — Rs 208.62 crore versus Rs 93 crore — meaning most of the money goes to existing shareholders rather than into the business.
The promoter and selling stakeholder average cost of acquisition ranges widely from Rs 1.12 up to Rs 89.65 per share. This reflects earlier share issuances between Rs 42 and Rs 448.26 (between September 2011 and February 2025) and two bonus issues — 1-for-1 in March 2018 and 4-for-1 in May 2025.
GMP Watch
Grey market interest has warmed up significantly. Behari Lal Engineering IPO GMP made a high of Rs 67 on 12 August and a low of Rs 24 on 7 August. On Day 2 of subscription, GMP stood at around Rs 65 — about 23% premium over the upper price band of Rs 285 — implying an estimated listing price of around Rs 350.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 449.96 | 516.30 | 546.52 |
| PAT | 35.79 | 52.95 | 64.64 |
| PAT Margin | 8.02% | 10.43% | 12.10% |
| RoCE | 21.98% | 28.24% | 27.11% |
Revenue has grown from Rs 449.96 crore in FY24 to Rs 546.52 crore in FY26 — a steady climb, though the FY25 to FY26 growth was modest at just under 6%. The company appears to be at an operational sweet spot where volume growth is measured but margin expansion is doing the heavy lifting.
PAT has climbed nearly 80% from Rs 35.79 crore in FY24 to Rs 64.64 crore in FY26. PAT margin has moved consistently upward from 8.02% to 12.10%, and RoCE has held steady above 27%. These are respectable numbers for a metal engineering business, reflecting the shift toward higher-value customised products.
Average EPS over three years is Rs 14.48 and average RoNW is 20.94%. At the upper band of Rs 285, the P/E works out to 18.65x on FY26 earnings and 22.76x on FY25 — a relatively narrow gap that suggests the pricing does not depend on any dramatic FY26 pop. The issue is priced at a P/BV of 3.63 on pre-IPO NAV and 3.02 on post-IPO NAV of Rs 94.34 per share.
Listed peers Jayaswal Neco, AIA Engineering, Steelcast, RHI Magnesita, Vardhman Special Steels, IFGL Refractories and Kennametal India trade at P/E multiples of 15.7, 35.0, 37.0, 77.4, 23.1, 38.2 and 52.5 respectively (as of August 7, 2026). BLEL’s 18.65x FY26 P/E sits toward the lower end of the peer range, though none of these are strict apples-to-apples comparisons.
According to a note by Anand Rathi Research, the company’s “emphasis on customised, precision-engineered and higher-value products, supported by product development capabilities and an expanding manufacturing base, provides a platform for sustained growth and potential improvement in profitability.” On valuation, the brokerage notes that “at the upper price band, the company is valued at P/E of 18.6x and EV/EBITDA of 13.3x on FY26 earnings and market cap of Rs 12,056 million post issue.” Anand Rathi believes “the IPO is fairly priced and recommends a ‘Subscribe Long Term’ to the IPO.”
Risks to Consider
The large OFS component is the most immediate concern. Rs 208.62 crore of the Rs 301.62 crore issue goes to selling shareholders rather than into the business. This isn’t unusual, but it means the IPO is significantly a promoter-exit vehicle.
Steel and metal engineering is cyclical. Demand tracks the broader industrial and infrastructure cycle, and any slowdown in downstream steel production, construction or capex could hit orders. The modest FY25 to FY26 revenue growth of ~6% may already reflect some cyclicality.
Customer concentration risk is real. While BLEL has 1,825 customers, the industrial B2B model means a handful of large steel mill and heavy engineering customers likely drive a big share of revenue. Losing even one major account could dent the top line.
Input cost volatility is significant. Steel scrap, alloys, refractories and energy are all volatile inputs, and margins depend on the ability to pass through price changes to industrial customers on long-tenure contracts.ontinents, and a decent Rs 178.57 crore order book. The margin trajectory has been consistent, with PAT margin climbing from 8.02% to 12.10% and RoCE holding above 27%.