Kolkata-based Lalbaba Engineering has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The IPO, with a face value of Rs 5, is a fresh issue up to Rs 630 crore and an offer for sale up to Rs 370 crore by promoters – Kishan Dhanuka, Amit Dhanuka, Nikunj Dhanuka, Nishit Dhanuka, LBIC Engineering Private Ltd and Kishan Dhanuka & Sons HUF.

The proceeds from its fresh issuance worth Rs 271 crore will be utilised for funding capital expenditure requirement for expansion of its Haldia facility, and Rs 209 crore for pre-payment or repayment in full or part of certain borrowings of the company, and general corporate purposes.

The issue is being made through the book-building process, in line with SEBI ICDR Regulations, with up to 50% reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Individual Investors (RIIs).

The company, in consultation with the book-running lead managers, may consider a pre-IPO Placement for up to Rs 126 crore. The pre-IPO placement if completed, the fresh issue size will be reduced.

Incorporated in 2006, the company is an engineering solutions company focussed on the development and manufacture of high-performance seamless tubes, precision forgings and integrated rail systems. The company operates at the intersection of advanced metallurgy, precision manufacturing, and end-to-end solutions delivery, which enables it to serve critical applications across railways, automotive, energy and industrial infrastructure.

As of August 31, 2025, the company ranks as India’s largest manufacturer of cold-finished seamless tubes and the second-largest overall for cold-finished steel tubes, by installed capacity among key players. (Source: CRISIL Report).

The company’s business is organised across three integrated verticals – tubular solutions, forging solutions and railway systems.

The company is among the few private engineering solutions players in India with an end-to-end offering spanning tube and forging manufacture, component assembly, systems integration, and on-site execution. (Source: CRISIL Report)

Tubular Solutions forms the technological core of the business. The company designs and manufactures cold finished seamless tubes in carbon, alloy, and stainless-steel grades, used in high-performance applications across automotive, energy, industrial infrastructure, and railways. Its product offerings include solutions for automotive applications such as steering columns and telescopic front forks, railway applications including air brake pipes and slack adjuster tube.

This vertical is supported by the LALBABA PRIME™ series of products, a proprietary family of advanced steel grades designed for high strength and weldability, and Uniflow™ technology, its continuous cold drawing process that integrates the entire cold drawn seamless (CDS) tube manufacturing lifecycle, from hot preparation to final testing, into a streamlined flow for tighter tolerances and faster cycle times.

In Forging Solutions, the company produces precision forged components for high-load, fatigue-resistant applications where consistent performance is essential. The company has played an instrumental role in the upgradation of RDSO approved cast railway components into forged equivalents, improving mechanical reliability, dimensional accuracy, and lifecycle performance. The railways currently account for the majority of the company’s forging volumes, and it is increasingly extending into defence and industrial applications.

Railway Systems vertical demonstrates the company’s integration capability. From manufacturing critical assemblies for bogies and brake systems, the company has expanded into turnkey modernisation programs under its Rail Solutions-as-a-Service (“RSaaS”) model. Its offerings include coach conversions, life extension retrofits, and wagon rebuilds, executed across multiple customer locations in India.

Between April 1, 2023 and March 31, 2025, the company has delivered its products to more than 18 countries, including the USA, Canada, Mexico, Brazil, Turkey, UAE, France, Germany, Italy, and Spain.

The company’s revenue from operations was Rs 771.6 crore during FY25 vis-à-vis Rs 343.2 crore during FY23.

Its net profit was Rs 42.4 crore during FY25 vis-à-vis Rs 26.6 crore during FY24.

IIFL Capital Services, Motilal Oswal Investment Advisors and Nuvama Wealth Management are the book running lead managers, and MUFG Intime India Private Limited is the registrar to the issue. The shares are proposed to be listed on the BSE and NSE.