Behari Lal Engineering IPO — GMP, Subscription, Review & Score

Behari Lal Engineering

MAINBOARD IPO · NSE, BSE · ✅ LISTED

FINMINUTES IPO SCORE 79/100

₹271–285

Price Band

Issue ₹302 cr · Lot 52

FinMinutes Deep Business Model & Edge

Behari Lal Engineering Limited is an integrated iron and steel manufacturing company in India specializing in customized engineering solutions. The company operates across steel melting, foundry, and rolling mill divisions, generating revenue primarily from the manufacture and sale of customized steel products such as alloy steel products, metal rolls, and engineering castings.

What this company actually does — full breakdown ▾

Originally incorporated in 1995 as Behari Lal Ispat Private Limited, Behari Lal Engineering Limited (BLEL) is a leading integrated foundry and steel manufacturer based in Mandi Gobindgarh, Punjab. The company operates two advanced manufacturing facilities spanning approximately 790,000 square feet with a combined installed capacity of 119,690 MTPA. BLEL’s specialized product mix includes metal rolls for rolling mills, engineering castings ranging from 500 kg to 20 MT, and alloy steel rolled products, serving a highly diversified set of end-use industries such as automotive, infrastructure, mining, power, aerospace, and defense. Following a major consolidation, the company merged Belco Special Steels Private Limited and Parkash Multimetals Private Limited into its operations, establishing its current integrated SMS, foundry, and rolling mill divisions. Sourcing raw materials (scrap steel and ferroalloys) directly from automobile OEMs and PSUs to eliminate intermediaries, the company has scaled to a revenue from operations of ₹5,340.25 million in FY26. BLEL maintains long-standing relationships with over 1,700 customers, with repeat clients accounting for 84.69% of FY26 revenues. It has also developed a decent global footprint, exporting products to 21 countries across 5 continents.

Alloy Steel Products — Comprises alloy steel grades such as valve steel, die steel, and tool steel used in automotive and industrial applications. It is the largest contributor to revenues, generating ₹2,446.10 million (45.81% of operations) in FY26.
Metal Rolls — Refers to the manufacture of metal rolls for rolling mills across various grades (e.g., alloy cast steel, adamite, S.G. iron). It generated ₹1,407.41 million (26.35% of operations) in FY26.
Engineering Castings — Comprises specialized engineering castings (500 kg to 20 MT) for aggregate crushers, thermal/hydro power components, and cement mills. It generated ₹1,043.39 million (19.54% of operations) in FY26.
Forging Ingots and Forged Shafts / Blocks — Includes semi-finished steel products cast into specific shapes for forging, upsetting, and ring-rolling applications. It generated ₹234.75 million (4.40% of operations) in FY26.

Moat / Edge

BLEL holds a competitive advantage as the only player in India with a product mix spanning metal rolls, engineered castings, and alloy steel products, allowing it to optimize resources and mitigate industry-specific risks. Its technical capabilities are validated by exclusive approvals and certifications from stringent regulatory bodies, including the Research Designs and Standards Organisation (RDSO), the Indian Defence sector, and Metso Corporation. These approvals require long gestation periods and rigorous audits, acting as high entry barriers. Additionally, its bulk-purchasing of scrap directly from automobile OEMs and PSUs eliminates intermediaries, securing a durable cost and quality advantage.

The Offer

Open – Close2026-08-12 – 2026-08-14

Price Band₹271–285

Lot Size52

Min Investment—

Issue Size₹302 cr

Fresh Issue₹93 cr

Offer for Sale—

ListingNSE, BSE

Follow the Money — Use of Proceeds

Funding capital expenditure requirement for purchase and installation of new equipment / machinery (including computers, printers and computer peripherals) along with civil work for such installation at Manufacturing Facility 1 — ₹19.59 cr
purchase and installation of new roof-top solar panels at Manufacturing Facility 1 — ₹3.40 cr
purchase and installation of new equipment / machinery along with civil work for such installation at Manufacturing Facility 2 — ₹36.65 cr
purchase and installation of new roof-top solar panels at Manufacturing Facility 2 — ₹3.40 cr
General corporate purposes

Valuation at the Offer Price

P/E at ₹285 upper band17.2xour arithmetic, on latest restated EPS

Peer median P/E36.2x

Against peers −52% discount to median

RoNW21.1%

The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.

FinMinutes IPO Score — How It's Built

Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 5 live components.

Score coverage 88%

88% of the designed weighting had real data behind it on this issue. Not yet scored here: Anchor Quality. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.

Issue Structure 70/100

How this is measured12%

Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.

Financial Quality 75/100

How this is measured32%

Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.

Valuation Vs Peers 90/100

How this is measured10%

The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.

Underwriter Quality 60/100

How this is measured6%

A proxy for syndicate strength, based today only on how many lead managers are on the issue: 75 where three or more banks are involved, 60 otherwise. We have not built a bank-by-bank track record, so treat this as a rough signal. When the filing does not disclose the syndicate, this component is dropped from the weighting rather than guessed.

Governance Forensics 88/100

How this is measured28%

Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.

3-Year Financial & Growth Trend

Metric	FY26	FY25	FY24
Revenue (₹ Cr)	534.025	507.912	446.084
Net Profit (₹ Cr)	64.636	52.951	35.791
PAT Margin	12.1%	10.43%	8.02%

Revenue Breakdown

Alloy Steel Products: 45.81%
Metal Rolls: 26.35%
Engineering Castings: 19.54%
Forging Ingots and Forged Shafts / Blocks: 4.4%
Job Work Income: 2.35%
Others: 1.55%

Market Context

NOT part of the FinMinutes Score

The Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.

Momentum100/100from live subscription

Total118.27xsubscribed

QIB—xbids land late

Retail—x

GMP₹75unofficial, grey market

The book and the filing agree.

Demand is strong and our read of the filing supports it. Agreement is not proof, but a disagreement would have been worth explaining, and there is not one.

Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.

Applying, and Who Handles the Allotment

Cut-off price₹285.00

Minimum retail application₹14,820

Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.

Deep Financials

Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.

Income StatementThe profit and loss as filed, then what we derive from it — kept apart.

Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.

Income Statement — as filed (₹ Cr)	FY26	FY25	FY24
Revenue from Operations	534.03	507.91	446.08
Other Income	12.49	8.39	3.87
Total Income	546.52	516.30	449.96
Cost of Materials Consumed	280.66	271.65	274.52
Employee Benefit Expense	42.14	32.61	18.73
Finance Cost	1.49	1.36	2.31
Depreciation & Amortisation	13.25	10.59	8.76
Other Expenses	122.05	114.08	85.51
Total Expenses	459.94	446.94	400.04
Profit Before Tax	86.58	69.36	49.92
Tax Expense	21.95	16.41	14.13
Profit After Tax	64.64	52.95	35.79
EPS - Basic	16.56	13.56	10.07
EPS - Diluted	16.56	13.56	10.07

Below this line the figures are ours, not the filing's. Ind AS has no EBITDA or EBIT line. We reconstruct them from disclosed items — EBIT as profit before tax plus finance cost, less any exceptional item and share of associate profit sitting below the operating line; EBITDA as EBIT plus depreciation. The working is in the Formula Notebook.

Derived by us (₹ Cr)	FY26	FY25	FY24
EBITDA	101.33	81.31	60.99
EBIT	88.07	70.72	52.23

Balance SheetWhat the company owns, owes, and is worth on paper.

Balance Sheet (₹ Cr)	FY26	FY25	FY24
Share Capital	39.04	7.81	4.86
Reserves & Surplus	267.06	233.81	186.13
Net Worth	306.10	241.62	193.94
Long-term Borrowings	0.30	0.76	6.82
Short-term Borrowings	17.48	6.82	34.40
Total Borrowings	17.78	7.58	412.13
Trade Payables	20.18	24.42	10.98
Current Liabilities	58.73	51.56	58.17
Total Liabilities	61.77	54.36	68.14
Property, Plant & Equipment	95.45	82.50	67.05
Capital Work in Progress	4.05	3.99	3.55
Intangible Assets	0.28	0.21	0.21
Investments	—	—	3.19
Inventories	104.39	81.10	62.37
Trade Receivables	95.77	78.39	81.34
Cash & Equivalents	1.14	2.46	0.47
Current Assets	251.18	196.92	177.81
Total Assets	367.87	295.98	262.08

Cash FlowWhere the cash actually went. Often the most honest statement of the three.

Cash Flow (₹ Cr)	FY26	FY25	FY24
Net Cash from Operating Activities	27.54	61.89	37.14
Capital Expenditure	26.39	26.00	14.84
Net Cash from Investing Activities	-37.57	-19.68	-52.38
Net Cash from Financing Activities	8.71	-40.22	13.77
Net Change in Cash	-1.32	1.99	-1.47

Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.

Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.

Ratio	FY26	FY25	FY24
Profitability
EBITDA Margin (%)	18.5	15.7	13.6
EBIT Margin (%)	16.1	13.7	11.6
PAT Margin (%)	12.1	10.4	8
Return on Equity (%)	21.1	21.9	18.5
Return on Capital Employed (%)	27.2	28.4	8.6
Return on Assets (%)	17.6	17.9	13.7
Leverage
Debt / Equity (x)	0.06	0.03	2.13
Net Debt / EBITDA (x)	0.16	0.06	6.75
Interest Coverage (x)	59.11	52.08	22.62
Liquidity
Current Ratio (x)	4.28	3.82	3.06
Quick Ratio (x)	2.5	2.25	1.98
Efficiency
Asset Turnover (x)	1.45	1.72	1.7
Receivable Days	65	56	67
Inventory Days	136	109	83
Payable Days	26	33	15
Cash Conversion Cycle (days)	175	132	135
Quality of Earnings
Operating Cash Flow / PAT (x)	0.43	1.17	1.04
Accruals Ratio (%)	10.1	-3	-0.5
Capex / Depreciation (x)	1.99	2.46	1.69
Inventory and payable days are measured against cost of goods (materials consumed + purchases of stock-in-trade + change in inventories). Receivable days against revenue.

DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.

A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.

Component	FY26	FY25	FY24
Net Margin (PAT / Revenue)	12.1%	10.4%	8%
Asset Turnover (Revenue / Assets)	1.45x	1.72x	1.7x
Equity Multiplier (Assets / Net Worth)	1.2x	1.22x	1.35x
= Return on Equity	21.1%	21.9%	18.5%
Tax Burden (PAT / PBT)	0.75x	0.76x	0.72x
Interest Burden (PBT / EBIT)	0.98x	0.98x	0.96x
Operating Margin (EBIT / Revenue)	16.5%	13.9%	11.7%

Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.

Quality of EarningsWhat the statements say when you read them against each other.

What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.

Operating cash flow was only 0.43x reported profit in FY26. Less than half of the profit on the income statement arrived as cash.
Between FY24 and FY26 revenue grew 20% while profit grew 81%. Profit expanding at several times the rate of revenue is not automatically a concern — operating leverage does exactly this — but it is worth confirming from the filing whether the gap comes from genuine margin expansion or from one-off items.
Interest coverage was 59.11x in FY26. Debt servicing is comfortably covered by operating profit.

Forensic ModelsBeneish, Altman, Piotroski and the Montier C-score — plus our own final-year check.

Beneish M-Score

M = -1.8

An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.

Component	Value	What it captures
DSRI Days Sales in Receivables Index `(Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1)`	1.162	Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection.
GMI Gross Margin Index `GrossMargin_t-1 / GrossMargin_t`	0.98	Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate.
AQI Asset Quality Index `AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets`	1.032	Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here.
SGI Sales Growth Index `Sales_t / Sales_t-1`	1.051	Growth is not manipulation. But high-growth firms face more pressure to keep the streak going.
DEPI Depreciation Index `DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE)`	0.933	Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit.
SGAI SG&A Index `(SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses`	1.065	A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure.
LVGI Leverage Index `Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets`	0.908	Above 1 means leverage rose. Debt covenants create pressure to hit numbers.
TATA Total Accruals to Total Assets `(PAT - CashFromOperations) / TotalAssets`	0.1008	The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash.

M = -1.8, below the −1.78 threshold. The model does not flag these accounts.

Altman Z″-Score (emerging markets)

Z″ = 15.86 · Safe

A distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.

X1 — Working Capital / Total Assets	0.523
X2 — Reserves / Total Assets	0.726
X3 — EBIT / Total Assets	0.239
X4 — Net Worth / Total Liabilities	4.955
Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4	15.86

X2 is meant to read retained earnings. The filing reports Other Equity, which also holds securities premium paid in by investors, so X2 here runs on reserves and reads higher than true retained earnings would. The more premium the company has raised before listing, the more Z″ is flattered.

Piotroski F-Score (adapted)

5 / 8

Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.

✓Positive return on assets
✓Positive operating cash flow
✗Return on assets improving
✗Cash flow exceeds profit (quality of earnings)
✓Long-term leverage decreasing
✓Current ratio improving
✓Gross margin improving
✗Asset turnover improving

Montier C-Score

5 of 6 signs

Six yes-or-no signs that reported profit may be running ahead of the business, from James Montier’s 2008 screen, read here for FY26 against FY25. Each is a direction in the statements, not a judgement. Several together are a reason to read the accounting policies and notes closely; none on its own means anything is wrong, and growing companies trip some of them honestly.

●Gap between profit and operating cash flow widening · PAT − CFO: ₹-8.9 cr in FY25, ₹37.1 cr in FY26
●Receivable days rising · 56 days in FY25, 65 days in FY26
●Inventory days rising · 109 days in FY25, 136 days in FY26 (on cost of goods)
●Other current assets rising against revenue · 6.9% of revenue in FY25, 9.3% in FY26 (current assets less cash, receivables and inventory)
○Depreciation falling against fixed assets · 12.8% of net block in FY25, 13.9% in FY26
●Total assets growing more than 10% a year · 24.3% in FY26

The Final-Year Check

ours

Not from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.

Cash conversion fell sharply in the final year: operating cash flow was 0.43x profit in FY26, against 1.17x in FY25. Profit rose; the cash behind it did not follow at the same rate.

Ratios Nobody Prints

Contingent liabilities / Net worth: 1.2%
Contingent liabilities of 3.56 cr against a net worth of 306.10 cr — 1.2% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which.
Cash / Short-term borrowings: 0.07x
Short-term borrowings of 17.48 cr against cash of 1.14 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable.
Promoter remuneration / PAT: 2%
Managerial remuneration to the promoter group was 1.27 cr against a profit of 64.64 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.

What the Price RequiresThe profit the offer price needs, at three hurdle rates. A restatement of the price, not a view on it.

At the upper band of ₹285.00, the market value is ₹1,112 cr. A buyer who wants a given return each year from a business that never grows needs annual profit of market value × that return. The three rates are round hurdle rates, not this company’s cost of capital, so pick the one that is yours. The years columns assume profit compounds from the FY26 figure and the price stands still. None of this is a forecast, a fair value or a target.

Hurdle rate	Profit the price needs	× FY26 profit	Years at 15% growth	Years at 25% growth
10% a year	₹111 cr	1.7x	3.9	2.4
12% a year	₹133 cr	2.1x	5.2	3.3
14% a year	₹156 cr	2.4x	6.3	3.9

Earnings yield at the upper band: 5.81% (FY26 profit ÷ market value).
Free cash flow yield: 0.10% (operating cash flow less capital expenditure, ₹1.1 cr, ÷ market value).

The Formula NotebookEvery number above, with the working shown. Check us.

Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.

Profitability

Return on Equity (ROE)21.1%

FormulaPAT ÷ Net Worth

Worked64.64 ÷ 306.10

What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.

Return on Capital Employed (ROCE)27.2%

FormulaEBIT ÷ (Net Worth + Total Borrowings)

Worked88.07 ÷ (306.10 + 17.78) = 88.07 ÷ 323.88

Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.

EBITDA Margin18.5%

FormulaEBITDA ÷ Revenue

Worked101.33 ÷ 534.03

Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.

Leverage

Debt to Equity0.06x

FormulaTotal Borrowings ÷ Net Worth

Worked17.78 ÷ 306.10

How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.

Interest Coverage59.11x

FormulaEBIT ÷ Finance Cost

Worked88.07 ÷ 1.49

How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.

Efficiency

Receivable Days65 days

Formula(Trade Receivables ÷ Revenue) × 365

Worked(95.77 ÷ 534.03) × 365

How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.

Cash Conversion Cycle175 days

FormulaInventory Days + Receivable Days − Payable Days

Worked136 + 65 − 26

How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.

Quality of Earnings

Operating Cash Flow to Profit0.43x

FormulaCash from Operations ÷ PAT

Worked27.54 ÷ 64.64

Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.

Accruals Ratio10.1%

Formula(PAT − Cash from Operations) ÷ Total Assets

Worked(64.64 − 27.54) ÷ 367.87 = 37.10 ÷ 367.87

The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.

Valuation at the Offer Price

Market Capitalisation (at the top of the band)₹1,112.39 cr

FormulaPrice × Post-issue Shares

Worked₹285.00 × 39,031,401 shares

What the whole company is being valued at, if the issue prices at the top of the band.

Enterprise Value (EV)₹1,129.03 cr

FormulaMarket Cap + Total Borrowings − Cash

Worked1,112.39 + 17.78 − 1.14

What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.

EV / EBITDA11.14x

FormulaEnterprise Value ÷ EBITDA

Worked1,129.03 ÷ 101.33

The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.

Price / Earnings (P/E)17.21x

FormulaMarket Cap ÷ PAT

Worked1,112.39 ÷ 64.64

The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.

Return on Invested Capital (ROIC)20.4%

FormulaEBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)

WorkedNOPAT ÷ Invested Capital

What the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.

Earnings yield at the upper band5.81%

FormulaLatest full-year PAT ÷ market value

Worked₹64.64 cr ÷ ₹1,112.39 cr

The P/E turned upside down: what each rupee of market value earns today. Set it against what you could earn elsewhere; the gap is what growth has to make up.

Free cash flow yield at the upper band0.10%

Formula(Operating cash flow − capital expenditure) ÷ market value

Worked₹1.15 cr ÷ ₹1,112.39 cr

Cash left after the company pays for its own investment, against the price of the whole company. Profit can be shaped by accounting choices; this is harder to shape.

Trailing PEG — read the caveat0.78 (on 22.1% trailing growth)

FormulaP/E ÷ trailing PAT growth (%)

Worked17.21 ÷ 22.1%

PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.

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Workspace

The post-issue share count is stated as “[•]” in this filing until final pricing, so we derive it: profit after tax divided by earnings per share gives the pre-issue count, and the fresh issue divided by the offer price gives the new shares. Everything below rests on that derivation. It is close, not exact.

The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.

Price per share (₹)

Revenue growth, per year (%)

EBITDA margin held at (%)

Discount rate for the reverse DCF (%)

Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.

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Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.

Institutional Alpha: DRHP Deep Dive

Industry Overview (RHP p. 204, 210, 240, 254)

According to the CRISIL Report, the Indian steel and customized components industry is undergoing significant growth driven by domestic infrastructure development and industrial expansion. The domestic steel demand grew at a 11.6% CAGR between Fiscals 2020 and 2026. The demand for metal rolls, which is positively correlated with finished steel production, grew at a 7.9% CAGR during Fiscals 2020-2026 and is projected to continue expanding as hot and cold rolling mills scale up. Concurrently, the Indian engineering castings (foundry) market, driven by automotive, energy, and defense sectors, is seeing a shift toward high-precision, lightweight, and automated production. The market is increasingly consolidating toward large and medium-sized organized players who benefit from technological superiority and economies of scale, while unorganized players continue to lose market share.

Market Size15.0-15.5 million tonnes (Fiscal 2026) (Indian Engineering Castings Demand) Growth8.0% to 9.0% CAGR (Fiscals 2026-2031) for the Indian foundry/castings market

Future Planning & Capital Allocation

BLEL is deploying its ₹930.00 million Fresh Issue proceeds toward key facility upgrades, dedicating ₹19.59 million to Facility 1 and ₹36.65 million to Facility 2 for purchasing advanced CNC and VTL machinery. The company is also investing in 2 MW rooftop solar plants (₹6.80 million total) to offset rising energy costs, aligning capital expenditure directly with process modernization and cost-containment goals.

Source: RHP p. 123, 128, 129

Competitive Position

The company occupies a strong, defensive position as a fully integrated, customized solutions provider. Its dual-facility setup in Mandi Gobindgarh operates with high capacity utilization (87.71% in FY26) and maintains a healthy ROCE of 27.11%, demonstrating capital efficiency that outpaces traditional alloy steel competitors (Peer Set 1 median ROCE is 15-19%).

Source: RHP p. 291, 296, 307

Execution / Track Record

BLEL has demonstrated solid execution, expanding its operational revenues at a 9.41% CAGR from ₹4,460.84 million in FY24 to ₹5,340.25 million in FY26. Concurrently, operating leverage and a shift toward high-value casting and metal rolls expanded EBITDA at a 28.9% CAGR, improving operating margins from 14% to 19%.

Source: RHP p. 288, 293, 296

Shareholding, Syndicate & Leadership

Promoter Pre → Post47.39% → —%

Pledged Shares0%

Free Float—%

Anchor—

Merchant Bankers (BRLMs)Emkay Global Financial Services Limited, Systematix Corporate Services Limited

RegistrarMUFG Intime India Private Limited

Leadership & Skin in the Game

Leadership: Bhuvnesh Garg (Chief Executive Officer)

Litigation: Outstanding tax litigations against the Company are 4 cases involving an aggregate quantified amount of ₹8.21 million (comprising ₹0.17 million in direct tax and ₹8.04 million in indirect tax). There are also 2 direct tax cases against the promoters involving ₹0.85 million. No criminal or statutory proceedings exist.

Auditor / RPT Flags: Restated financial statements do not contain any auditor qualifications or reservations. Footnotes disclose material related-party transactions in previous years, including a ₹240.32 million interest-free loan to promoter-controlled trading entity BLC Metals Private Limited (repaid in full in FY24), and the redemption of ₹94.00 million of preference shares to BLC Metals in FY25.

Peers & Valuation

Company	P/E	P/B	RoE	Margin
Jayaswal Neco Industries Limited	18.48	—	16.39	—
AIA Engineering Limited	34.43	—	15.53	—
Steelcast Limited	37.99	—	21.89	—
RHI Magnesita India Limited	—	—	-10.81	—
Vardhman Special Steel Limited	23.19	—	9.59	—
IFGL Refractories Limited	43.46	—	7.93	—
Kennametal India Limited	62.02	—	13.7	—

Where this sits

At the ₹285 upper band, the issue is priced at 17.2x earnings — a 52% discount to the peer median of 36.2x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.

🔍 Forensic Findings — What the Footnotes Say

Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.

Untraceable Educational Records for Promoters where: risk_section flagged

The company does not have documentary evidence for the educational qualifications of two of its Promoters who are also Directors: Parkash Chand Garg (Chairman) and Rajesh Garg (Vice Chairman). Their degree certificates and marksheets are not traceable, and the company has placed reliance on affidavits and university correspondence.

RHP p. 45, 121

Large Related-Party Transactions with Common Pursuits where: rpt noted

The company engages in significant related-party transactions with group entity BLC Metals Private Limited, which operates in a similar steel-trading line of business. BLEL extended a ₹240.32 million interest-free loan in FY24 (repaid in full) and executed a ₹94.00 million preference share redemption in FY25 with BLC Metals, indicating heavy financial overlap and potential conflict-of-interest risks.

RHP p. 46, 433, 503-505

Delays in Depositing Statutory Dues where: other noted

The company has experienced multiple instances of administrative delays in depositing statutory dues such as TDS, TCS, and GST. In FY26, there were 17 instances of TDS delays totaling 2,566 days, and in FY25, 15 instances totaling 2,010 days.

RHP p. 47, 48

Outstanding Tax Disputes where: litigation noted

The company faces multiple tax litigations, including 3 indirect tax cases totaling ₹8.04 million, primarily driven by a CGST show cause notice of ₹6.98 million. The company has challenged this SCN by filing a writ petition before the High Court of Punjab and Haryana, alleging ITC was disallowed due to a supplier's cancelled GST registration.

RHP p. 495, 497

Material Litigation where: litigation flagged

Outstanding tax litigations against the Company are 4 cases involving an aggregate quantified amount of ₹8.21 million (comprising ₹0.17 million in direct tax and ₹8.04 million in indirect tax). There are also 2 direct tax cases against the promoters involving ₹0.85 million. No criminal or statutory proceedings exist.

RHP p. 45, 46, 118, 121, 433, 495, 497

Auditor / RPT Notes where: rpt noted

Restated financial statements do not contain any auditor qualifications or reservations. Footnotes disclose material related-party transactions in previous years, including a ₹240.32 million interest-free loan to promoter-controlled trading entity BLC Metals Private Limited (repaid in full in FY24), and the redemption of ₹94.00 million of preference shares to BLC Metals in FY25.

RHP p. 45, 46, 118, 121, 433, 495, 497

Short-term debt exceeds cash on hand where: derived flagged

Short-term borrowings of ₹17.48 cr against cash of ₹1.14 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.

rule: cash < 0.5x short-term debt

Company's Claims vs Reality

We stress-test each claim against the filing's own data.

We are one of India's largest metal rolls producers, meeting 10% to 11.5% of the country's demand in fiscal 2026. Supported

Do third-party industry assessments validate the company's leading market share in the metal rolls sector?

RHP p. 291 (The commissioned CRISIL Report validates that Behari Lal Engineering Limited is a top-tier player in the organized segment, supplying 10-11.5% of national metal roll requirements in FY26)

Our diversified product portfolio optimizes resources and mitigates risks, as we are the only player in India with an integrated product mix of metal rolls, engineered castings, and alloy steel products. Supported

Does peer benchmarking confirm that BLEL possesses a unique product footprint compared to competitors?

RHP p. 290, 291 (Operational comparisons demonstrate that while listed peers specialize in single verticals like alloy steel or castings, BLEL is unique in operating across all three product segments under one integrated SMS, foundry, and rolling mill facility)

Proprietary SWOT — Company-Specific

Strengths

Integrated manufacturing model spanning SMS, foundry, and rolling mills, which optimizes resource utilization and mitigates product-specific risks.
Strong customer stickiness and repeat-buyer model, with repeat clients contributing 84.69% of Fiscal 2026 revenues.
Significant entry barriers created by specialized technical approvals from RDSO, the Indian Defence sector, and Metso Corporation.
Extremely low financial leverage with a Debt-to-Equity ratio of 0.06 in Fiscal 2026.

Weaknesses

Single-region manufacturing footprint, with both operational facilities located strictly in Mandi Gobindgarh, Punjab, raising vulnerability to local disruptions.
High fixed operational overheads that require continuous near-full capacity utilization to maintain strong margins.
Vulnerability to raw material cost spikes (scrap steel and ferroalloys) as the company relies on transactional purchase orders rather than long-term supply contracts.
High power and utility dependence, with fuel expenses representing 7.64% of total expenses in Fiscal 2026.

Opportunities

Import substitution potential as Indian steel manufacturers currently import substantial quantities of high-value metal rolls from international players.
Expansion of global footprints, leveraging its One Star Export House recognition to target additional international corridors.
Value-added product optimization by scaling in-house capabilities for high-margin tool steel, die steel, and valve steel products.

Threats (material, not boilerplate)

Intense margin and volume pressure from large domestic steel alloy and casting conglomerates (such as Jayaswal Neco, Vardhman, and AIA Engineering). risk_section
Why it matters: Competitors with larger capital resources can scale production and implement discount pricing, eroding BLEL's pricing power.
Fluctuations in global scrap metal pricing and transport freight rates which are difficult to immediately pass on to order-based clients. risk_section
Why it matters: Unplanned spikes in raw material and utility costs compress profit margins, especially when purchase orders are fixed-price transactions.

Live Subscription Status

Total118.27x

Total subscription is fed live from the exchange data feed. The category split (QIB, NII, retail) is not carried by that feed and is added by hand where it is material — so it is shown only when we have actually verified it, rather than left as blanks.

Allotment Status

Bidding closed14 Aug 2026

Allotment18 Aug 2026

Refunds begin18 Aug 2026

Listing19 Aug 2026

Check your allotment on the registrar's portal → Registrar: MUFG Intime India

Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (25 Sep 2026) is the date to raise with your bank.

Analyst Q&A: Burning Questions

Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.

USE OF PROCEEDS

Where is the money going?

Net proceeds from the ₹93.00 crore Fresh Issue are deployed for: ₹19.59 crore for advanced machinery and civil works at Manufacturing Facility 1, ₹36.65 crore for machinery and civil works at Manufacturing Facility 2, ₹6.80 crore for new rooftop solar panels across both facilities, with the remaining portion allocated for general corporate purposes.

RHP p. 123, 128, 129

CONCENTRATION

How concentrated is the customer base?

The customer base is moderately diversified. The top 10 customers collectively contributed ₹2,029.21 million, representing 38.00% of revenue from operations in FY26 (compared to 39.91% in FY25 and 37.81% in FY24). No single customer contributes 10% or more of total revenues.

RHP p. 24, 203

PROFITABILITY

Is it profitable and growing?

Yes. Revenue from operations increased from ₹4,460.84 million in FY24 to ₹5,340.25 million in FY26. PAT grew at a 34.35% CAGR from ₹357.91 million in FY24 to ₹646.36 million in FY26, with operating EBITDA margin expanding from 14% to 19% over the same period.

RHP p. 77, 293, 294, 296

HIDDEN RISKS

What sits in the footnotes / contingent liabilities?

Contingent liabilities as of March 31, 2026 total ₹35.58 million, dominated by ₹28.43 million in bank guarantees and ₹7.15 million in disputed GST tax audits (contested under appeal via a writ petition before the High Court of Punjab and Haryana). Footnotes also reveal that educational qualification certificates for two directors (Parkash Chand Garg and Rajesh Garg) are untraceable and rely on affidavits, and highlight a historical related-party interest-free loan of ₹240.32 million granted to promoter-controlled BLC Metals Private Limited.

RHP p. 45, 84, 430, 433

GMP: ₹75 — unofficial grey-market chatter, shown for information only. Never part of the FinMinutes Score.

What Earlier Investors Paid

Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.

Shareholder	Priced at	When	vs IPO price
Allotted below the band — 2 entries
SG Tech Engineering Private Limited (previously known as Homedge Infracon Private Limited)	₹448.26	2024-01-20	as disclosed
Anubhav Gupta Investments (through Anubhav Gupta)	₹448.26	2024-02-22	as disclosed

The 2 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.

Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.

Lock-in Expiry Calendar

Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.

19 Aug 2029
Minimum Promoters' Contributionthree years
19 Aug 2027
Promoters' shareholding in excess of Minimum Promoters' Contributionone year
19 Feb 2027
Entire pre-Offer Equity Share capital held by persons other than our Promoterssix months
18 Sep 2026
Anchor Investors (50%)30 days
17 Nov 2026
Anchor Investors (50%)90 days

An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.

What Changed Between the DRHP and the RHP

Companies file a draft prospectus, then a final one. The changes in between are rarely reported, and they can be revealing.

Item	In the DRHP	In the RHP / Addendum
Fresh Issue Size The Fresh Issue size was reduced by ₹ 170.00 million (approx. 15.45%) between the draft and final prospectus.	Up to ₹ 1,100.00 million	Up to ₹ 930.00 million
Offer for Sale (OFS) Size The number of shares offered for sale by the selling shareholders was cut by 534,520 Equity Shares (approx. 6.81%).	Up to 7,854,521 Equity Shares	Up to 7,320,001 Equity Shares
Monitoring Agency Requirement In the DRHP, because the proposed Fresh Issue size exceeded ₹ 1,000.00 million, the company was required to appoint a Monitoring Agency. Since the Fresh Issue size was reduced to ₹ 930.00 million (below the regulatory threshold) in the RHP, this monitoring requirement was dropped.	Required	Not required
Financial Information Period The reporting period was rolled forward to cover full Fiscal 2026 financial statements, dropping the oldest reporting period (Fiscal 2023).	Fiscals 2025, 2024, and 2023	Fiscals 2026, 2025, and 2024
Use of Proceeds (Facility 1 CapEx - Equipment) Estimated CapEx allocation for equipment and machinery purchase and installation at Manufacturing Facility 1 was reduced by ₹ 46.99 million.	₹ 242.88 million	₹ 195.89 million
Use of Proceeds (Facility 2 CapEx - Equipment) Estimated CapEx allocation for equipment and machinery purchase and installation at Manufacturing Facility 2 was reduced by ₹ 72.31 million.	₹ 438.81 million	₹ 366.50 million
Use of Proceeds (Rooftop Solar CapEx - Facility 1 & 2) The allocation for rooftop solar panel installations was adjusted downwards by ₹ 5.00 million for each of the two manufacturing facilities.	₹ 39.00 million per facility	₹ 34.00 million per facility
Use of Proceeds (Repayment of Borrowings) Proceeds allocated to the repayment or pre-payment of fund-based bank borrowings were reduced by ₹ 1.30 million.	₹ 7.00 million	₹ 5.70 million
Contingent Liability (GST Audit SCN) Following a CGST audit under Section 65 for the period April 2018 to March 2023, tax authorities raised a total demand of ₹ 9.18 million. The company paid ₹ 2.20 million and contested the remaining ₹ 6.98 million, which was added as a contingent liability in the RHP.	Not present	₹ 6.98 million
Designated Stock Exchange NSE was formally designated as the stock exchange for coordinate allocation and other offer processes.	[●]	National Stock Exchange of India Limited (NSE)

Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.

Written and verified by

Gaureesh Vats Shukla

Founder and Head of Research, FinMinutes

Gaureesh Vats Shukla reads Indian offer documents as an engineer. He has read several hundred of them alongside annual reports, most of them by hand before he built the structured extraction engine that now does the work at scale, and every figure on this page carries a citation back to the page of the filing it came from. To restated numbers he applies a standard forensic battery: Beneish M-score, Altman Z-double-prime, Piotroski F-score, DuPont decomposition and cash-conversion analysis. Coverage runs the full cap spectrum alongside macro, mutual funds and unlisted companies, with particular depth in the segment institutional research does not reach. The sectors closest to the work are defence and aerospace, semiconductors and electronics, technology, engineering and EPC, solar and capital goods. He holds a B.Tech in Aerospace Engineering and completed the Post Graduate Programme in Securities Markets at NISM with a research analysis specialisation.

The same research method is available as commissioned work: company diligence, industry and market-entry studies, and financial modelling. See what that covers →

Figures on this page were last recomputed from the filing on 2026-10-21.

Behari Lal Engineering IPO GMP Today and Forensic Analysis