Punjab-based Behari Lal Engineering Ltd. has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (SEBI), for its proposed Initial Public Offering (IPO).

The offer, with a face value of Rs 10 per equity share, comprises a fresh issue aggregating up to Rs 1,100 million and an offer-for-sale of up to 7,854,521 equity shares by existing shareholders. The selling shareholders include promoters – Rajesh Garg and Lovlish Garg, promoter group members, Yogita Garg, promoter Group Selling Shareholder,  Dinesh Kumar Garg (HUF), and investor shareholder SG Tech Engineering Private Limited.

The proceeds from the fresh issue will be utilised towards funding capital expenditure requirements, repayment or prepayment of borrowings, and general corporate purposes.

The Offer is being made through the book-building process, in compliance with SEBI ICDR Regulations, wherein not more than 50% of the net offer will be available for allocation to qualified institutional buyers (QIBs), not less than 15% to non-institutional bidders (NIIs), and not less than 35% to retail individual bidders (RIIs).

Behari Lal Engineering was founded in Punjab in 1995 under the name Behari Lal Ispat Private Limited. In 2024, the company was turned into a public limited company and renamed Behari Lal Engineering Limited to reflect its expanded product offering and size. The company is a renowned manufacturer of engineering castings, alloy steel products, and metal rolls, all of which are vital components in industries including steel, power, and heavy engineering. It has two integrated production facilities in Mandi Gobindgarh, Punjab, one of which is a steel melting shop and foundry and the other a rolling mill division. These facilities are suited to meet a wide range of casting and roll requirements, including in-house design, quality testing, and R&D capabilities.

The company operates in the engineering castings and rolls industry, which is vital to India’s steel and infrastructure expansion. With increasing demand for high-quality castings and alloy rolls, the sector is seeing more prospects, both domestically and abroad. Behari Lal Engineering’s emphasis on precision production, metallurgical knowledge, and client-specific solutions offers it an advantage in this competitive market.

Behari Lal Engineering has supplied products to over 1,600 customers across 19 states and 6 union territories in India, and exports to 15 countries across five continents, including Germany, USA, Brazil, South Africa, and UAEs. The company’s focus on product quality, process innovation and long-term client relationships has positioned it as a trusted supplier to both private and government-sector customers.

As of March 31, 2025, the company operated two integrated manufacturing facilities in Mandi Gobindgarh, Punjab with an aggregate installed capacity of ~119,500 TPA.

Over the last three years, the company’s finances have grown steadily. In FY2025, the company’s consolidated revenue from operations climbed to Rs 5,079.1 million, up from Rs 4,460.8 million in FY2024 and Rs 4,629.3 million in FY2023. Profit after tax increased to Rs 529.5 million in FY2025, from Rs 357.9 million in FY2024 and Rs 288.0 million in FY2023.

This steady increase in profitability is due to improved operating efficiency, increased demand from domestic and foreign markets, and the growth of product lines catering to the steel and engineering industries.

The issue’s Book Running Lead Managers are Emkay Global Financial Services Limited and Systematix Corporate Services Limited, and the Offer’s Registrar is MUFG Intime India Private Limited (previously Link Intime India Pvt. Ltd).