Behari Lal Engineering IPO

About this issue

Behari Lal Engineering is a Mainboard issue priced at ₹285 a share. One lot is 52 shares, which costs ₹14,820. The book is 20.07 times subscribed overall. The grey market premium is +₹70 (+24.6%), which is an informal figure and not a quoted price. Our call is Must Apply, on 100% of our checks.

Segment

Mainboard

Price

₹285

Lot size

52 shares

One lot costs

₹14,820

Issue size

₹302 Cr

Grey market premium

+₹70 (+24.6%)

Subscribed

20.07x

Our call

Must Apply

What we checked

• Profitable in the latest yearPAT ₹64.64 Cr
• Profit grew year on yearPAT +22%
• Revenue grew year on yearRevenue +6%
• Borrowing under half of net worthDebt/net worth 0.06
• Return on net worth above 15%RoNW 21.1%
• Post-issue P/E under 40P/E 18.6
• Price to book under 6P/B 3.6
• Majority is fresh capital31% fresh issue
• Promoters keep at least half70.8% held post-issue
• Anchor investors participatedAnchor book placed
• Institutions subscribed over 10×QIB 3.1× subscribed
• Overall book more than 10× covered20.1× overall
• Institutions wanted it more than retailQIB 3.1× vs retail 19.1×
• Lead manager above segment medianSystematix Corporate Services Ltd.: 8 past issues, +13% avg vs +9% segment median

1 further check could not be judged, because the issue did not disclose enough. They count neither for nor against.