Mumbai: Shares of Behari Lal Engineering Ltd made a strong stock market debut on Wednesday, listing at a premium of more than 63 percent over the IPO price of Rs 285 per share.
Strong listing on exchanges
On the BSE, the stock opened at Rs 458, marking a gain of 60.70 percent from its issue price. The shares made an even stronger debut on the NSE, opening at Rs 465, up 63.15 percent.
Following the listing, the integrated iron and steel manufacturer’s market valuation stood at Rs 2,135.22 crore.
IPO receives robust demand
Behari Lal Engineering’s Rs 302-crore initial public offering received a strong response from investors. The issue was subscribed 108.44 times by the close of bidding on Friday.
The IPO was offered in a price band of Rs 271 to Rs 285 per equity share. It included a fresh issue of shares worth up to Rs 93 crore and an offer for sale of up to 73.20 lakh shares by existing shareholders.
Plans for fresh funds
The company plans to use money raised through the fresh issue to purchase and install new equipment and machinery at its manufacturing plants. This will also include computers, peripherals and related civil construction work.
A part of the funds will be used to install rooftop solar panels at two of its manufacturing facilities. The company also plans to repay or prepay certain borrowings, while the remaining amount will be used for general corporate purposes.
Manufacturing presence
Behari Lal Engineering currently operates two manufacturing units at Mandi Gobindgarh in Punjab. It has also started building a third manufacturing facility in the Fatehgarh Sahib district of the state.
The company manufactures metal rolls, engineering castings, alloy steel products and forging ingots. Its products are supplied to customers operating across industries such as steel, power and heavy engineering.
The strong listing followed heavy demand during the IPO, reflecting positive investor interest in the company’s manufacturing operations and expansion plans, and its plans for future capacity growth.
