Lalbaba Engineering Ltd, a leading engineering and manufacturing company in India, has filed for its Initial Public Offering (IPO), offering investors an opportunity to buy shares and become part of its growth story. The IPO will be listed on India’s major stock exchanges — NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) — once completed.
What Is the Lalbaba Engineering IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. This helps the company raise funds to expand operations, reduce debt, and support future growth. It also gives early investors a chance to partially exit their investment.
The Lalbaba Engineering IPO is a mainboard issue with a proposed size of ₹1,000 crore. This consists of:
- A Fresh Issue of up to ₹630 crore, where the company will receive the IPO proceeds.
- An Offer For Sale (OFS) of up to ₹370 crore, where the promoters and existing shareholders will sell shares to the public.
The IPO will be conducted through a book-building process, where investors bid within a price band that will be announced before the IPO opens.
IPO Opening and Closing Dates
The exact opening and closing dates for the Lalbaba Engineering IPO will be announced later in official IPO filings. Once the dates are announced, investors will have a fixed window (usually 3–5 days) to apply. Stay updated for the announcement of the price band and timetable.
Price Band and Lot Size
The price band (the per-share price range) and lot size (the number of shares you must apply for in one bid) are not yet announced. These details will be available in the IPO prospectus released before the opening.
Once declared:
- Investors can bid within the price range.
- Shares will be sold in minimum lots.
- Retail investors will be able to calculate the cost per lot based on the upper price band.
Who Can Apply?
The Lalbaba Engineering IPO will be open to different types of investors, including:
- Retail Individual Investors (RII) — everyday individual investors
- Non-Institutional Investors (NII) — high-net-worth individuals
- Qualified Institutional Buyers (QIBs) — institutions like mutual funds, insurance companies, banks
Typically, a portion of the IPO is reserved for different categories:
- A major portion for QIBs
- A smaller share for NIIs
- A portion for retail investors
Exact percentages and allotment details will appear in the IPO documents.
Listing and Allotment Timeline
After the IPO closes:
- Allotment of shares will be announced — this tells investors whether they received shares.
- Refunds are issued to those who did not get shares.
- Shares are credited to allotted investors’ Demat accounts.
- Listing begins on NSE & BSE — this is when shares can be traded publicly.
Final dates will be confirmed in the listing timetable once SEBI and stock exchanges publish the IPO schedule.
About Lalbaba Engineering Ltd
Lalbaba Engineering Ltd is an engineering solutions company that manufactures high-performance seamless tubes, precision forged components, and integrated rail systems.
Business Verticals
The company’s operations are broadly organised into three major verticals:
- Tubular Solutions: Cold-finished seamless tubes used across automotive, energy, industrial, and rail sectors.
- Forging Solutions: Precision forged parts that are critical in heavy-load applications including rail and industrial equipment.
- Railway Systems: Integrated rail components, assemblies, and turnkey solutions for modernisation, brake systems, and bogies.
Lalbaba Engineering is one of India’s largest manufacturers of cold-finished seamless tubes by installed capacity and the second-largest overall in cold-finished steel tubes.
Geographic and Export Footprint
The company serves customers across India and exports to more than 18 countries, including the USA, Canada, Mexico, Brazil, Turkey, UAE, France, Germany, Italy, and Spain.
Company Growth and Performance
Lalbaba Engineering has delivered strong financial performance in the past few years:
- Revenue from operations grew from about ₹343 crore in FY23 to around ₹771 crore in FY25 — nearly a 50% CAGR.
- Profit After Tax (PAT) increased significantly over the same period, showing consistent improvement.
- EBITDA growth showed strong operating performance, with a CAGR exceeding 70%.
- The company reported healthy margins and improving leverage ratios, indicating better financial health.
Ongoing operations are supported by increasing market demand and improved production efficiency — with capacity utilisation rising year-on-year in key plants.
Use of IPO Funds
Funds raised from the fresh issue will mainly be used for:
- Expansion of manufacturing facilities, especially at the Haldia plant.
- Repayment or prepayment of outstanding borrowings, reducing financial leverage.
- General corporate purposes to support working capital and future growth projects.
These strategic uses aim to strengthen the company’s overall financial position and support capacity growth.
Who Are the Lead Managers?
The IPO is expected to be managed by experienced financial institutions. Early filings list several key merchant bankers leading the issue (final names will be confirmed in the IPO prospectus).
Why the IPO Matters
This IPO is significant for several reasons:
- Market leadership: The company is a leader in a specialised engineering segment that serves critical sectors like railways, automotive, and energy.
- Diversified product portfolio: From high-performance tubes to integrated rail solutions, Lalbaba caters to multiple industrial demands.
- Growth potential: With capacity expansions and strong export outreach, the company is positioned for future growth.
For investors, this IPO offers a chance to participate in a firm with solid technical expertise, expanding infrastructure exposure, and improving financial performance.
Should You Apply?
Whether to apply for the Lalbaba Engineering IPO depends on:
- Your investment goals
- Your risk tolerance
- Your long-term outlook on manufacturing and heavy-industry demand
IPOs can provide good entry points, but they also carry risks — including market volatility, execution risk, and sector demand fluctuations. Consider reading the official IPO prospectus carefully and consult a financial advisor before applying.
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