Lalbaba Engineering IPO
Lalbaba Engineering Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue and offer for sale. SEBI issued its observations on 13 January 2026, so the company can open the IPO any time up to 13 January 2027. The draft proposes a fresh issue of up to ₹630 crore and an offer for sale of up to ₹370 crore by its five promoters and one promoter group member. In FY26 the company made a profit of ₹71.36 crore on revenue of ₹1,093.73 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- SEBI observations issued13 Jan 2026
- SEBI received draft
- 8 Oct 2025
- Type of issue
- Fresh issue and offer for sale
- Lead manager
- IIFL Capital Services Limited
- Must open by
- 13 Jan 202712 months from observations
- Price band and dates
- Not announced
Where it stands
Lalbaba Engineering IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI8 Oct 2025
- SEBI reviewDone
- SEBI observations13 Jan 2026
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI has issued its final observations, which in practice is the go-ahead. The company can now file a red herring prospectus and open the IPO within 12 months.
DRHP at a glance
Lalbaba Engineering DRHP at a glance
Draft red herring prospectus, 29 Sep 2025What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Our Business (p. 206) and Risk Factors (p. 39 to 41)Lalbaba Engineering makes high-performance seamless tubes, precision forgings and integrated rail systems, and offers assembly, systems integration and on-site work. Railways gave 62.96% of FY25 revenue, and Indian Railways and related bodies 23.18%.
Its main plant is at Haldia, West Bengal, which it plans to expand with money from the IPO. It was incorporated in 2006; the registered office is in Haldia and the corporate office in Kolkata.
The offer
DRHP cover page, The Offer (p. 83) and Capital Structure (p. 98)| Fresh issue | Up to ₹630 croreMoney goes to the company |
| Offer for sale | Up to ₹370 croreLBIC Engineering ₹125 crore, Kishan Dhanuka ₹95 crore, Kishan Dhanuka & Sons HUF ₹75 crore, Nikunj Dhanuka ₹30 crore, Nishit Dhanuka ₹30 crore and Amit Dhanuka ₹15 crore; average costs ₹2.90 to ₹9.12 a share |
| Shares before the IPO | 10,23,84,540Face value ₹5 |
| Pre-IPO placement | Up to ₹126 croreOptional; would reduce the fresh issue |
| Listing | BSE and NSEMainboard, under Regulation 6(1) |
| Lead managers | IIFL Capital Services Limited and Motilal Oswal Investment Advisors Limited |
| Registrar | MUFG Intime India Private Limited |
| Promoters | LBIC Engineering Private Limited, Kishan Dhanuka, Amit Dhanuka, Nikunj Dhanuka and Nishit Dhanuka |
What the company plans to do with the money
DRHP, Objects of the Offer (p. 117 to 119)| Object | ₹ crore | Share of fresh issue |
|---|---|---|
| Expanding the Haldia plant | 271.20 | 43.0% |
| Repaying or prepaying certain borrowings | 209.00 | 33.2% |
| General corporate purposes (set later, up to 25% of the fresh issue) |
Each object's share of the ₹630 crore fresh issue, shown in the table, is our calculation. Offer expenses are deducted before these amounts. The offer for sale money goes to the selling shareholders, not the company.
Financials
Addendum dated 21 Sep 2026, Basis for the Offer Price (KPIs) and Restated Financial Information, ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 599.50 | 771.61 | 1,093.73 |
| EBITDA | 71.84 | 97.48 | 150.34 |
| EBITDA margin | 11.98% | 12.63% | 13.75% |
| Profit after tax | 26.61 | 42.44 | 71.36 |
| Diluted EPS (₹) | 2.64 | 3.99 | 5.80 |
| Net worth | 141.62 | 184.40 | 256.26 |
| Cash from operations | 6.21 | 13.67 | 52.74 |
| Return on equity | 24.19% | 25.19% | 27.93% |
| Net debt to equity | 1.39 | 1.41 | 1.44 |
Restated consolidated figures from the addendum. Net worth is total equity. Revenue grew about 35.1% a year from FY24 to FY26 (our calculation).
Listed peers named in the draft
Addendum dated 21 Sep 2026, Basis for the Offer Price. Peer prices as of 15 Sep 2026 on BSE.The P/E for Lalbaba is not given until the price band is set.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| Lalbaba Engineering (FY26) | 5.80 | Set with the price band | 28.07% |
| Titagarh Rail Systems | 9.11 | 89.08x | 5.18% |
| Texmaco Rail & Engineering | 4.84 | 22.88x | 7.55% |
| Jupiter Wagons | 4.02 | 57.54x | 5.97% |
| Frontier Springs | 51.07 | 24.03x | 39.89% |
| Venus Pipes & Tubes | 49.43 | 39.21x | 16.99% |
| Tube Investments of India | 32.90 | 77.01x | 9.59% |
| Goodluck India | 18.69 | 27.77x | 12.90% |
Risks the draft lists first
DRHP, Risk Factors (p. 39 to 42)- Two verticalsTubular solutions gave 41.38% and rail systems 45.19% of FY25 revenue. (Risk factor 1, p. 39)
- RailwaysThe railway sector gave 62.96% of FY25 revenue. (Risk factor 2, p. 39)
- Indian RailwaysIndian Railways and related bodies gave 23.18% of FY25 revenue. (Risk factor 3, p. 40)
- Key customersThe top 10 customers gave 41.92% of FY25 revenue. (Risk factor 4, p. 41)
- Plant disruptionA shutdown of its manufacturing operations would hurt results. (Risk factor 5, p. 41)
- Quality standardsFailing customers' quality standards could bring cancelled orders, recalls or damages. (Risk factor 6, p. 42)
Documents
Lalbaba Engineering DRHP and documents
SEBI filings- Draft red herring prospectus, dated 29 Sep 2025, on SEBI since 9 Oct 2025
- Addendum to the DRHP, on SEBI since 21 Sep 2026
The DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
Lalbaba Engineering IPO FAQs
When will the Lalbaba Engineering IPO open?
The date is not announced. SEBI issued observations on 13 January 2026, and SEBI rules require the IPO to open within 12 months of that date, so by 13 January 2027 (our calculation). The company announces the dates in its red herring prospectus and price band notice.
Has SEBI approved the Lalbaba Engineering IPO?
Yes. SEBI issued its final observations on 13 January 2026 (SEBI processing status archive, April 2025 to March 2026). SEBI does not "approve" an IPO as such; its observations let the company go ahead.
What is the Lalbaba Engineering IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the Lalbaba Engineering IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the Lalbaba Engineering IPO?
IIFL Capital Services Limited is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
What will Lalbaba Engineering do with the IPO money?
According to the DRHP, the fresh issue money goes to expanding the Haldia plant (₹271.20 crore), repaying or prepaying certain borrowings (₹209.00 crore), and the rest to general corporate purposes. The offer for sale money goes to the selling shareholders, not the company.
What does Lalbaba Engineering do?
Lalbaba Engineering makes high-performance seamless tubes, precision forgings and integrated rail systems, and offers assembly, systems integration and on-site work. Railways gave 62.96% of FY25 revenue, and Indian Railways and related bodies 23.18%.
Where can I read the Lalbaba Engineering DRHP?
On SEBI's website, where the draft red herring prospectus was published on 9 October 2025. The draft is dated 29 September 2025 and runs to 528 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 29 September 2025. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.