Behari Lal Engineering Ltd IPO
Status: Closed
Overview
IPO date
12 Aug 2026 to 14 Aug 2026
Face value
₹ 10 per share
Price
₹ 271 to ₹285 per share
Issue Size
10,583,158 shares
(aggregating up to ₹ 301.62 Cr)
(aggregating up to ₹ 301.62 Cr)
Allotment Date
17 Aug 2026
Listing at
NSE
Issue type
Book Building
Sector
Steel
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T&C*
Strengths vs Risks of Behari Lal Engineering Ltd
Know the pros & cons
Strengths
- Long standing relationships with a large number of customers spread across a wide array of end-user industries with stringent qualification processes.
- Diversified product portfolio catering to varied application industries.
- Strategically located Manufacturing Facilities with advanced equipment and robust overlapping processes which enables high capacity utilisation.
- Robust presence in the steel manufacturing industry leveraging on the legacy and experience of our Promoters and strong domain expertise of our management team.
- Track record of financial performance and consistent growth.
Risks
- The company generates significant revenues from its top 10 customers, and in Fiscals 2026, 2025 and 2024, revenue from the company's top 10 customers was Rs. 2,029.21 million, Rs. 2,027.16 million and Rs. 1,686.51 million constituting 38.00%, 39.91% and 37.81%, respectively, of its revenue from operations. The company does not enter into long term contracts with its customers and the loss of such customers or a significant reduction in the company's revenue from such customers will have a material adverse impact on its business and financial condition.
- The company's success depends on its continuing relationship with the company's customers and its derives a significant majority of the company's revenue from repeat customers. In Fiscals 2026, 2025 and 2024, revenue from repeat customers was Rs. 4,522.77 million, Rs. 4,372.98 million and Rs. 3,570.50 million constituting 84.69%, 86.10% and 80.04%, respectively, of the company's revenue from operations. Loss of one or more of its repeat customers or reduction in their demand for the company's offerings could adversely affect its business, results of operation and financial conditions.
- The company caters to diverse end use industries and customers in the automobile, infrastructure, Aggregate Crusher Manufacturer (ACM) and engineering (industrial equipment) which contributed an aggregate of Rs. 2,063.85 million, Rs. 1,104.50 million, Rs. 980.15 million and Rs. 899.96 million to the company's revenue from operations constituting 38.65%, 20.68%, 18.35% and 16.85% of its total revenue from operations during Fiscal 2026, respectively. Any adverse impact on these industries or result in the loss of customers in these end use industries could have an adverse effect on the company's business, revenue from operations and financial condition.
- A substantial proportion of the company's sales is concentrated in India and sales to customers in India and its revenues from sales to customers in India was Rs. 4,860.47 million, Rs. 4,859.33 million, and Rs. 4,245.17 million constituting 91.02%, 95.67% and 95.17% of the company's revenue from operations in Fiscals 2026, 2025 and 2024. Any inability to maintain and grow its revenues from the company's sales in India may have an adverse effect on the company's business, financial condition, result of operation, cash flows and future business prospects.
- The cost of raw materials, including through imports, constitutes the largest component of its expenses and cost of material consumed was Rs. 2,806.58 million, Rs. 2,716.46 million, and Rs. 2,745.21 million constituting 61.02%, 60.78% and 68.62%, of the company's total expenses during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Substantial delay or failures to procure necessary raw materials could have an adverse impact on its operations and the company's ability to meet its customer obligations which could adversely impact on the company's business and its revenue.
- The company has dues which is outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on the company's reputation, business and financial condition.
- The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company's business, results of operations and financial conditions. Conditions and restrictions imposed on the company by the agreements governing its indebtedness could adversely affect the company's ability to operates its business.
- The company's Restated Financial Statements contain contingent liabilities aggregating Rs. 35.58 million for Fiscal 2026 and capital commitments aggregating Rs. 19.29 million for Fiscal 2026. If these contingent liabilities and capital commitments materialise, it may adversely affect its cash flows and results of operations.
- The company is reliant on raw materials that are procured from third party suppliers with whom the company does not have long term contracts. Its procurement cost towards the company's top 10 suppliers during Fiscal 2026, 2025, and 2024 was Rs. 1,766.96 million, Rs. 1,385.04 million, and Rs. 1,583.14 million constituting 38.39%, 30.99%, and 39.57% of its total expenses, respectively. Failures to ensure a consistent supply of raw materials at commercially acceptable prices will adversely affect the company's business and financial condition.
- The pricing in the steel industry is subject to market demand, volatility and economic conditions. Reduction in steel prices may have a material adverse impact on the company's business, results of operations, and financial conditions.
- Purchase of raw materials, stock in trade and consumables such as scrap, ferro alloy, rolls, ingots and billets from the company's top 10 vendors was Rs. 1,766.96 million, Rs. 1,385.04 million and Rs. 1,583.14 million constituted 49.00%, 38.05% and 47.65%, of its total purchases in Fiscals 2026, 2025 and 2024, respectively. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on the company's business and its revenue.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business, revenue from manufacturing operations and financial condition.
- The company is heavily reliant on its alloy steel products, metal rolls and engineering castings business segment which cumulatively contributed more than 90.00% to the company's revenue from operations in each of Fiscal 2026, Fiscal 2025 and Fiscal 2024.
- Delays or defaults in customer payments and receivables may adversely impact the company's profits and cash flows.
- The company's business is dependent on its ability to provide products in accordance with agreed specifications within contracted timelines. Failures to adhere to such requirements could result in the loss of business and reputation.
- Exchange rate fluctuations could adversely affect the company's operations and increase its cost of manufacturing operations.
- The company is heavily dependent on machinery and its operating processes for the company's operations. Any breakdown of its machinery or the company's operating systems will have a significant impact on its business, financial results and growth prospects. The company's success and financial condition will depends on its ability to maximise the company's manufacturing capacities.
- Under-utilization of the company's currently operational production lines at its Manufacturing Facilities and an inability to effectively utilize the company's expanded manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
- The company's current order book value is not necessarily indicative of future growth. Further, some of the orders that constitute its current order book could be cancelled, put in abeyance, delayed, or not paid for by the company's customers, which could adversely affect its financial condition.
- There are certain outstanding legal proceedings involving the Company, and Promoter, which, if determined against it, could have a material adverse effect on its business, cash flows, financial condition and results of operations.
- The company's operations is subject to manufacturing risk and causing fatal injury to personnel including death and destruction of property and consequent imposition of civil and criminal penalties.
- The company's future success will depends on its ability to effectively implement the company's business and growth strategies. Its failures in effectively implementing the company's business and growth strategies may adversely affect its results of operations.
- The company's operations is dependent on its product development capabilities and if the company is unable to continually develop new products and grades, its ability to grow, and, or, compete effectively, might be compromised, which would have an adverse impact on the company's business and financial condition.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- The Company has filed statutory forms with incorrect information in the past and there has been variation in the corporate records of the Company. Its cannot assure you that the company will not be subject to penalties or that no other action will be initiated against the company in this regard.
- The company's business operations requires significant working capital. If its experience insufficient cash flows to meet required payments on the company's working capital requirements, there may be an adverse effect on the results of its operations.
- The company's contracts with its customers could include warranty provisions and penalty/damages which if invoked, could have an adverse effect on the company's business, result of operations and financial condition.
- The company is dependent on its Promoters, Key Managerial Personnel, and members of Senior Management. Failures to retain or replace them will adversely affect the company's business.
- The company does not has documentary evidence for the educational qualifications of 2 of its Promoters who are also the Directors of the Company, included in the `Its Management' in this Red Herring Prospectus.
- The Company has recently commenced construction for its third manufacturing facility. Any unanticipated delays in construction or the company's failure to build the new manufacturing facility may result in cost overruns and could have an adverse impact on its business, reputation, financial condition, and results of operations.
- The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions has not been entered into with related parties and that such transactions will not have an adverse effect on the company's financial conditions and result of operations.
- The company has not yet placed orders in relation to the capital expenditure for the purchase of equipment and machinery which are proposed to be funded out of the Net Proceeds. If there is any delay in placing the orders, or in the event the vendor is not able to provide the equipment in a timely manner, or at all, it may result in time and cost overruns and the company's business, prospects and results of operations may be adversely affected.
- The company operates in a competitive environment. Competition from existing players and new entrants and consequent pricing pressures and its inability to compete effectively could have a material adverse effect on the company's operating margins, business growth and prospects, financial condition and results of operations and may lead to a lower market share.
- The company faces certain risks and challenges that are specific to the industry in which its operates. If any or a combination of these risks and challenges materialise it could have a material adverse effect on the company's business, results of operations and financial condition.
- The company is completely reliant on third-party logistics service providers for transport of raw materials and finished products. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, its freight and forwarding charges were Rs. 84.25 million, Rs. 90.28 million and Rs. 52.92 million constituting 1.83%, 2.02% and 1.32%, respectively, of the company's total expenses.
- The company has availed unsecured loans including from related parties which are unsecured and may be recalled at any time. If such loans are recalled, its may need to find adequate funding to replace such loans which may not be available on commercially acceptable terms or at all.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its reputation and the company's business.
- Failures to meet quality standards required by the company's customers may lead to cancellation of existing and future orders and have an adverse impact on its business operations.
- Any failures to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for the company's operations from time to time may adversely affect its business.
- The company's manufacturing operations is power and fuel intensive. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's power and fuel expenses was Rs. 351.46 million, Rs. 326.98 million and Rs. 236.82 million constituting 7.64, 7.32% and 5.92%, respectively of its total expenses. Significant increase in power could adversely affect the company's results of operation and profitability.
- The company's employee benefits expense is one of the larger components of its fixed operating costs. An increase in employee benefits expense could reduce the company's profitability.
- If the company is unable to attract new customers or sell additional products to its existing customers, the company's revenue growth will be adversely affected.
- The company is dependent on its Manufacturing Facilities, which are situated in Mandi Gobindgarh, Punjab. Further, the company has recently commenced construction for its third manufacturing facility in Mandi Gobindgarh, Punjab, as well. The company is subject to the risks associated with a single location manufacturing facilities.
- The company's business benefits from certain subsidies towards electricity dues, GST refund etc. Withdrawal of or reduction in these subsidies could have an adverse impact on its financials.
- Any downgrade of the company's credit rating facilities could have an impact on its ability to obtain externing debt funding and cost of debt funds which could have an adverse impact on the company's financial condition.
- The company may need to seek additional financing in the future to support its growth strategies. Any failures to raise additional financing could have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Conflicts of interest may arise out of common pursuit between the Company, Group Company and entities forming part of its Promoter Group.
- The majority of the company's directors including its independent directors does not has any experience of being a director in a listed company. This may requires them to divert their attention from its business concerns to understand the detailed operations of a listed company.
- The industry report prepared by CRISIL, which the company has commissioned and paid for, identifies certain risks and challenges associated with the industry in which its operates. If these risks and challenges materialise, it could adversely affect the company's business, financial condition and prospects.
- The company's Promoters, who is also the Selling Shareholders, have subscribed to, and purchased, Equity Shares, at a price which could be below the Offer Price. The average cost of acquisition of Equity Shares by the company's Promoters could also be lower than the Offer Price.
- The company's operations is reliant on human resources. Any disruption in steady and regular supply of workforce for its operations could have an adverse impact on the company's business operations and financial conditions.
- The company's Promoters and Promoter Group will, even after the completion of the Offer, continue to be its largest Shareholders and can influence the outcome of resolutions, which may potentially involve conflict of interest with the other Shareholders.
- Health, safety and environmental matters, including compliance with environmental laws and remediation of contamination, could result in substantially increased capital requirements and operating costs.
- Inability to maintain adequate internal controls may affect the company's ability to effectively manage its operations which may adversely affect the company's business operations.
- The company's Promoters, some of its Directors, Key Managerial Personnel and Senior Management have interests in the Company other than reimbursement of expenses incurred and normal remuneration or benefits.
- The company has availed on lease, the use of certain properties from which its operates some of the company's business operations, from certain members of its Promoter Group. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on the same or similar commercial terms.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- If the company is subject to any frauds, theft, or embezzlement by its employees, vendors, suppliers, it could adversely affect the company's reputation, results of operations, financial condition and cash flows.
- The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The Company has not paid any dividends on Equity Shares in the last 3 Fiscals and during the current Fiscal. There can be no assurance that the Company will be in a position to pay dividends in the future.
- Failures to keep the company's technical knowledge confidential could erode its competitive advantage.
- The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution and are based on management estimates.
- This Red Herring Prospectus contains information from an industry report prepared by CRISIL which the company has commissioned and paid for in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The requirements of being a publicly listed company may strain the Company's resources.
- Certain non-GAAP financial measures and certain other statistical information relating to the company's operations and financial performance like Earnings before interest, tax, depreciation and amortization expenses (EBITDA), EBITDA margin, return on capital employed (ROCE), return on equity (ROE), inventory turnover ratio and debt to equity, have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
Behari Lal Engineering Ltd Peer Comparison
Understand the company’s industry standing
Behari Lal Engineering Ltd
Jayaswal Neco Industries Limited
AIA Engineering Limited
Face Value
10
10
2
Standalone / Consolidated
Standalone
Standalone
Consolidated
Total Income Rs. Cr.
534.025
7131.82
4419.864
EPS-Basis
16.56
4.77
136.11
EPS-Diluted
16.56
4.77
136.11
NAV Per Share
78.41
29.26
859.98
P/E-Basic EPS
---
18.48
34.43
P/E-Diluted EPS
---
---
---
RONW(%)
21.12
16.39
15.53
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 12 Aug 2026 & closes on 14 Aug 2026.
Behari Lal Engineering Limited was originally incorporated as Behari Lal Ispat Private Limited', as a Private Limited Company and received a Certificate of Incorporation issued by the Registrar of Companies, Punjab, H.P. & Chandigarh on May 23, 1995. Subsequently, the name of Company was changed to Behari Lal Engineering Private Limited' on September 4, 2024. Thereafter, Company was converted into a Public Limited Company and the name was changed to Behari Lal Engineering Limited', pursuant to a fresh Certificate of Incorporation issued by the RoC on September 21, 2024.
The Company has pioneered as an integrated iron and steel manufacturing company specializing in customized engineering solutions. The precision engineered components comprise of metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts/blocks. They operate across diverse industries such as automobile, steel, mining, infrastructure and construction, power, aerospace and defence, cement and sugar. Presently, the Company is engaged in the business of manufacturing and trading of Iron and Steel products such as Ingot, Steel Casting, Metal Rolls and Alloy and Non-Alloy Round, Flat, Hex and Square etc.
The Company started production of Steel Ingots in 2012, commenced production of forging, metal rolls and steel casting and established Plant I machine shop in 2014. In 2015, it commenced sale of non alloy steel rounds by installing vacuum degassing Plant.
In 2017, Company commissioned No Bake Sand System at Manufacturing Facility I. It installed an Induction Melting Furnace at Manufacturing Facility 1 in 2019. Further, it commissioned the first CNC Lathe Machine at Plant I in 2020. The Company made first export of steel casting to Finland in 2021. It commissioned Short Blast Machine at Manufacturing Facility 1 in FY 21-22. It commissioned the Heat Treatment Furnace Plant in 2023. The Company installed a new Melting Furnace Plant having the capacity of 12 MT at the manufacturing facility I in 2024. Further, a new Heat Treatment Furnace of 150 MT capacity has been commissioned at Plant I in FY 2025. The Company also has installed an Elemental Analyser at Plant I in 2025.
Company is planning the initial public offer by raising money of Rs 100 Cr equity shares through fresh issue and by issuing 7,854,521 equity shares through offer for sale having the face value of Rs 10 each.
Behari Lal Engineering Ltd IPO will close on 14 Aug 2026.
- Long standing relationships with a large number of customers spread across a wide array of end-user industries with stringent qualification processes.
- Diversified product portfolio catering to varied application industries.
- Strategically located Manufacturing Facilities with advanced equipment and robust overlapping processes which enables high capacity utilisation.
- Robust presence in the steel manufacturing industry leveraging on the legacy and experience of our Promoters and strong domain expertise of our management team.
- Track record of financial performance and consistent growth.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Parkash Chand Garg | 2798160 | 7.17 | 2798160 | 6.61 |
| 2 | Rajesh Garg | 3897115 | 9.98 | 1953492 | 4.62 |
| 3 | Dinesh Garg | 4072195 | 10.43 | 4072195 | 9.63 |
| 4 | Lovlish Garg | 5532125 | 14.17 | 5182125 | 12.25 |
| 5 | Bhuvnesh Garg | 2201550 | 5.64 | 2201550 | 5.2 |
| 6 | Anju Garg | 3686865 | 9.44 | 3686865 | 8.72 |
| 7 | Dinesh Kumar Garg HUF | 2967125 | 7.6 | 2817125 | 6.66 |
| 8 | Yogita Garg | 3359600 | 8.61 | 1215977 | 2.87 |
| 9 | Kanav Garg | 3177750 | 8.14 | 3177750 | 7.51 |
| 10 | Rajesh Kumar Garg HUF | 1966120 | 5.04 | 1966120 | 4.65 |
| 11 | Lovlish Garg HUF | 695000 | 1.78 | 695000 | 1.64 |
| 12 | Pratibha Goyal | 198880 | 0.51 | 198880 | 0.47 |
| 13 | Ridhisha Achal Bansal | 1000 | --- | 1000 | --- |
- The company generates significant revenues from its top 10 customers, and in Fiscals 2026, 2025 and 2024, revenue from the company's top 10 customers was Rs. 2,029.21 million, Rs. 2,027.16 million and Rs. 1,686.51 million constituting 38.00%, 39.91% and 37.81%, respectively, of its revenue from operations. The company does not enter into long term contracts with its customers and the loss of such customers or a significant reduction in the company's revenue from such customers will have a material adverse impact on its business and financial condition.
- The company's success depends on its continuing relationship with the company's customers and its derives a significant majority of the company's revenue from repeat customers. In Fiscals 2026, 2025 and 2024, revenue from repeat customers was Rs. 4,522.77 million, Rs. 4,372.98 million and Rs. 3,570.50 million constituting 84.69%, 86.10% and 80.04%, respectively, of the company's revenue from operations. Loss of one or more of its repeat customers or reduction in their demand for the company's offerings could adversely affect its business, results of operation and financial conditions.
- The company caters to diverse end use industries and customers in the automobile, infrastructure, Aggregate Crusher Manufacturer (ACM) and engineering (industrial equipment) which contributed an aggregate of Rs. 2,063.85 million, Rs. 1,104.50 million, Rs. 980.15 million and Rs. 899.96 million to the company's revenue from operations constituting 38.65%, 20.68%, 18.35% and 16.85% of its total revenue from operations during Fiscal 2026, respectively. Any adverse impact on these industries or result in the loss of customers in these end use industries could have an adverse effect on the company's business, revenue from operations and financial condition.
- A substantial proportion of the company's sales is concentrated in India and sales to customers in India and its revenues from sales to customers in India was Rs. 4,860.47 million, Rs. 4,859.33 million, and Rs. 4,245.17 million constituting 91.02%, 95.67% and 95.17% of the company's revenue from operations in Fiscals 2026, 2025 and 2024. Any inability to maintain and grow its revenues from the company's sales in India may have an adverse effect on the company's business, financial condition, result of operation, cash flows and future business prospects.
- The cost of raw materials, including through imports, constitutes the largest component of its expenses and cost of material consumed was Rs. 2,806.58 million, Rs. 2,716.46 million, and Rs. 2,745.21 million constituting 61.02%, 60.78% and 68.62%, of the company's total expenses during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Substantial delay or failures to procure necessary raw materials could have an adverse impact on its operations and the company's ability to meet its customer obligations which could adversely impact on the company's business and its revenue.
- The company has dues which is outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on the company's reputation, business and financial condition.
- The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company's business, results of operations and financial conditions. Conditions and restrictions imposed on the company by the agreements governing its indebtedness could adversely affect the company's ability to operates its business.
- The company's Restated Financial Statements contain contingent liabilities aggregating Rs. 35.58 million for Fiscal 2026 and capital commitments aggregating Rs. 19.29 million for Fiscal 2026. If these contingent liabilities and capital commitments materialise, it may adversely affect its cash flows and results of operations.
- The company is reliant on raw materials that are procured from third party suppliers with whom the company does not have long term contracts. Its procurement cost towards the company's top 10 suppliers during Fiscal 2026, 2025, and 2024 was Rs. 1,766.96 million, Rs. 1,385.04 million, and Rs. 1,583.14 million constituting 38.39%, 30.99%, and 39.57% of its total expenses, respectively. Failures to ensure a consistent supply of raw materials at commercially acceptable prices will adversely affect the company's business and financial condition.
- The pricing in the steel industry is subject to market demand, volatility and economic conditions. Reduction in steel prices may have a material adverse impact on the company's business, results of operations, and financial conditions.
- Purchase of raw materials, stock in trade and consumables such as scrap, ferro alloy, rolls, ingots and billets from the company's top 10 vendors was Rs. 1,766.96 million, Rs. 1,385.04 million and Rs. 1,583.14 million constituted 49.00%, 38.05% and 47.65%, of its total purchases in Fiscals 2026, 2025 and 2024, respectively. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on the company's business and its revenue.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business, revenue from manufacturing operations and financial condition.
- The company is heavily reliant on its alloy steel products, metal rolls and engineering castings business segment which cumulatively contributed more than 90.00% to the company's revenue from operations in each of Fiscal 2026, Fiscal 2025 and Fiscal 2024.
- Delays or defaults in customer payments and receivables may adversely impact the company's profits and cash flows.
- The company's business is dependent on its ability to provide products in accordance with agreed specifications within contracted timelines. Failures to adhere to such requirements could result in the loss of business and reputation.
- Exchange rate fluctuations could adversely affect the company's operations and increase its cost of manufacturing operations.
- The company is heavily dependent on machinery and its operating processes for the company's operations. Any breakdown of its machinery or the company's operating systems will have a significant impact on its business, financial results and growth prospects. The company's success and financial condition will depends on its ability to maximise the company's manufacturing capacities.
- Under-utilization of the company's currently operational production lines at its Manufacturing Facilities and an inability to effectively utilize the company's expanded manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
- The company's current order book value is not necessarily indicative of future growth. Further, some of the orders that constitute its current order book could be cancelled, put in abeyance, delayed, or not paid for by the company's customers, which could adversely affect its financial condition.
- There are certain outstanding legal proceedings involving the Company, and Promoter, which, if determined against it, could have a material adverse effect on its business, cash flows, financial condition and results of operations.
- The company's operations is subject to manufacturing risk and causing fatal injury to personnel including death and destruction of property and consequent imposition of civil and criminal penalties.
- The company's future success will depends on its ability to effectively implement the company's business and growth strategies. Its failures in effectively implementing the company's business and growth strategies may adversely affect its results of operations.
- The company's operations is dependent on its product development capabilities and if the company is unable to continually develop new products and grades, its ability to grow, and, or, compete effectively, might be compromised, which would have an adverse impact on the company's business and financial condition.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- The Company has filed statutory forms with incorrect information in the past and there has been variation in the corporate records of the Company. Its cannot assure you that the company will not be subject to penalties or that no other action will be initiated against the company in this regard.
- The company's business operations requires significant working capital. If its experience insufficient cash flows to meet required payments on the company's working capital requirements, there may be an adverse effect on the results of its operations.
- The company's contracts with its customers could include warranty provisions and penalty/damages which if invoked, could have an adverse effect on the company's business, result of operations and financial condition.
- The company is dependent on its Promoters, Key Managerial Personnel, and members of Senior Management. Failures to retain or replace them will adversely affect the company's business.
- The company does not has documentary evidence for the educational qualifications of 2 of its Promoters who are also the Directors of the Company, included in the `Its Management' in this Red Herring Prospectus.
- The Company has recently commenced construction for its third manufacturing facility. Any unanticipated delays in construction or the company's failure to build the new manufacturing facility may result in cost overruns and could have an adverse impact on its business, reputation, financial condition, and results of operations.
- The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions has not been entered into with related parties and that such transactions will not have an adverse effect on the company's financial conditions and result of operations.
- The company has not yet placed orders in relation to the capital expenditure for the purchase of equipment and machinery which are proposed to be funded out of the Net Proceeds. If there is any delay in placing the orders, or in the event the vendor is not able to provide the equipment in a timely manner, or at all, it may result in time and cost overruns and the company's business, prospects and results of operations may be adversely affected.
- The company operates in a competitive environment. Competition from existing players and new entrants and consequent pricing pressures and its inability to compete effectively could have a material adverse effect on the company's operating margins, business growth and prospects, financial condition and results of operations and may lead to a lower market share.
- The company faces certain risks and challenges that are specific to the industry in which its operates. If any or a combination of these risks and challenges materialise it could have a material adverse effect on the company's business, results of operations and financial condition.
- The company is completely reliant on third-party logistics service providers for transport of raw materials and finished products. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, its freight and forwarding charges were Rs. 84.25 million, Rs. 90.28 million and Rs. 52.92 million constituting 1.83%, 2.02% and 1.32%, respectively, of the company's total expenses.
- The company has availed unsecured loans including from related parties which are unsecured and may be recalled at any time. If such loans are recalled, its may need to find adequate funding to replace such loans which may not be available on commercially acceptable terms or at all.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its reputation and the company's business.
- Failures to meet quality standards required by the company's customers may lead to cancellation of existing and future orders and have an adverse impact on its business operations.
- Any failures to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for the company's operations from time to time may adversely affect its business.
- The company's manufacturing operations is power and fuel intensive. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's power and fuel expenses was Rs. 351.46 million, Rs. 326.98 million and Rs. 236.82 million constituting 7.64, 7.32% and 5.92%, respectively of its total expenses. Significant increase in power could adversely affect the company's results of operation and profitability.
- The company's employee benefits expense is one of the larger components of its fixed operating costs. An increase in employee benefits expense could reduce the company's profitability.
- If the company is unable to attract new customers or sell additional products to its existing customers, the company's revenue growth will be adversely affected.
- The company is dependent on its Manufacturing Facilities, which are situated in Mandi Gobindgarh, Punjab. Further, the company has recently commenced construction for its third manufacturing facility in Mandi Gobindgarh, Punjab, as well. The company is subject to the risks associated with a single location manufacturing facilities.
- The company's business benefits from certain subsidies towards electricity dues, GST refund etc. Withdrawal of or reduction in these subsidies could have an adverse impact on its financials.
- Any downgrade of the company's credit rating facilities could have an impact on its ability to obtain externing debt funding and cost of debt funds which could have an adverse impact on the company's financial condition.
- The company may need to seek additional financing in the future to support its growth strategies. Any failures to raise additional financing could have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Conflicts of interest may arise out of common pursuit between the Company, Group Company and entities forming part of its Promoter Group.
- The majority of the company's directors including its independent directors does not has any experience of being a director in a listed company. This may requires them to divert their attention from its business concerns to understand the detailed operations of a listed company.
- The industry report prepared by CRISIL, which the company has commissioned and paid for, identifies certain risks and challenges associated with the industry in which its operates. If these risks and challenges materialise, it could adversely affect the company's business, financial condition and prospects.
- The company's Promoters, who is also the Selling Shareholders, have subscribed to, and purchased, Equity Shares, at a price which could be below the Offer Price. The average cost of acquisition of Equity Shares by the company's Promoters could also be lower than the Offer Price.
- The company's operations is reliant on human resources. Any disruption in steady and regular supply of workforce for its operations could have an adverse impact on the company's business operations and financial conditions.
- The company's Promoters and Promoter Group will, even after the completion of the Offer, continue to be its largest Shareholders and can influence the outcome of resolutions, which may potentially involve conflict of interest with the other Shareholders.
- Health, safety and environmental matters, including compliance with environmental laws and remediation of contamination, could result in substantially increased capital requirements and operating costs.
- Inability to maintain adequate internal controls may affect the company's ability to effectively manage its operations which may adversely affect the company's business operations.
- The company's Promoters, some of its Directors, Key Managerial Personnel and Senior Management have interests in the Company other than reimbursement of expenses incurred and normal remuneration or benefits.
- The company has availed on lease, the use of certain properties from which its operates some of the company's business operations, from certain members of its Promoter Group. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on the same or similar commercial terms.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- If the company is subject to any frauds, theft, or embezzlement by its employees, vendors, suppliers, it could adversely affect the company's reputation, results of operations, financial condition and cash flows.
- The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The Company has not paid any dividends on Equity Shares in the last 3 Fiscals and during the current Fiscal. There can be no assurance that the Company will be in a position to pay dividends in the future.
- Failures to keep the company's technical knowledge confidential could erode its competitive advantage.
- The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution and are based on management estimates.
- This Red Herring Prospectus contains information from an industry report prepared by CRISIL which the company has commissioned and paid for in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The requirements of being a publicly listed company may strain the Company's resources.
- Certain non-GAAP financial measures and certain other statistical information relating to the company's operations and financial performance like Earnings before interest, tax, depreciation and amortization expenses (EBITDA), EBITDA margin, return on capital employed (ROCE), return on equity (ROE), inventory turnover ratio and debt to equity, have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
The Issue type of Behari Lal Engineering Ltd is Book Building.
The minimum application for shares of Behari Lal Engineering Ltd is 52.
The total shares issue of Behari Lal Engineering Ltd is 10583158.
Initial public offer of 10,583,158 equity shares of face value of Rs. 10 each (Equity Shares) of Behari Lal Engineering Limited (Company) for cash at a price of Rs. 285 per equity share (Including a Share Premium of Rs. 275 Per Equity Share) (Offer Price) aggregating up to Rs. 301.62 Crore (Offer) comprising a fresh issue of 3,263,157 equity shares of face value of Rs. 10 each aggregating Rs. 93 Crore by the company (Fresh Issue) and an offer for sale of 7,320,001 equity shares of face value of Rs. 10 each aggregating Rs. 208.62 Crore by the selling shareholders (Offer For Sale) comprising 1,943,623 equity shares of face value of Rs. 10 each aggregating Rs.55.39 Crore by Rajesh Garg, 350,000 equity shares of face value of Rs. 10 each aggregating Rs. 9.98 Crore by Lovlish Garg (Collectively, `Promoter Selling Shareholders'), 2,143,623 equity shares of face value of Rs. 10 each aggregating Rs. 61.09 Crore by Yogita Garg, 150,000 equity shares of face value of Rs. 10 each aggregating Rs. 4.28 Crore by Dinesh Kumar Garg Huf (Collectively, `Promoter Group Selling Shareholders') and 2,732,755 equity shares of face value of Rs. 10 each aggregating Rs. 77.88 Crore by SG Tech Engineering Private Limited (investor selling shareholder, together with promoter selling shareholders and promoter group selling shareholders, `Selling Shareholders', and such equity shares, the offered shares). The offer constituted 25.02% of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 285 per equity share of face value of Rs. 10 each.
The floor price is 28.50 times the face value of the equity shares.
Bids can be made for a minimum of 52 equity shares of face value of Rs. 10 each and in multiples of 52 equity shares of face value of Rs. 10 each thereafter.