Lalbaba Engineering Ltd. on Tuesday filed its preliminary papers with the capital markets regulator SEBI to raise Rs 1,000 crore via an initial public offering. The public offer will include mix of fresh issues of shares worth Rs 630 crore and an offer-for-sale up to Rs 370 crore by promoter selling shareholders.
The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd. The company, in consultation with the BRLMS, may consider an issue of equity shares aggregating up to Rs 126 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
LBIC Engineering Pvt., Kishan Dhanuka, Amit Dhanuka, Nikunj Dhanuka, Nishit Dhanuka and Kishan Dhanuka & Sons HUF are the promoters of the company offloading shares in the offer for sale.
IIFL Capital Services Ltd., Motilal Oswal Investment Advisors Ltd. and Nuvama Wealth Management Ltd. are the book-running lead managers for the issue and MUFG Intime India Pvt. will be the registrar of the issue.
Proceeds from the fresh issue worth Rs 271.2 crore will be used for expansion of Haldia Facility while Rs 209 crore will be used for repayment or prepayment in full or in part of certain outstanding borrowings availed by the company. The remaining amount will also be used for general corporate purposes.
The West Bengal-based company is an engineering solutions company focused on the development and manufacture of high-performance seamless tubes, precision forgings and integrated rail systems. The company has three verticals tubular solutions, forging solutions and railway systems. Lalbaba Engineering has three facilities located in Haldia, Uluberia and Ghusuri in West Bengal. As of March 2025, the company has delivered its products locally and internationally to countries like US, Canada, Mexico and UAE.
The revenue from operations in fiscal 2025 rose 28.7% to Rs 771.61 crore in comparison to Rs 599.5 crore. The profit for the financial year 2025 rose 59.5% to Rs 42.44 crore from Rs 26.61 crore reported in financial year ended March 2024.
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