Business Profile of Lalbaba Engineering Limited
Lalbaba Engineering Ltd. was incorporated in 2006 and it is an engineering solutions company, specializing in high-performance seamless tubes, precision forgings, and integrated rail systems. The business structure of company includes Tubular Solutions, Forging Solutions and Railway Systems. Under which company offers design and manufacture cold-finished seamless tubes in carbon, alloy, and stainless steel grades, making precision-forged components for high-stress, high-performance applications and making assemblies for bogies & brake systems and handle turnkey rail projects respectively. It is India’s largest manufacturer of cold-finished seamless tubes and Second-largest overall for cold-finished steel tubes by installed capacity as on date of August 31, 2025.
Objective of Lalbaba Engineering Limited IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨5.00 each aggregating up to ₹ 6,300.00 million and OFS consists XXXX shares at face value of ₨ 5.00 each aggregating up to ₨ 3,700.00 million. There are fresh shares issues and OFS by company and main objective of company is capex requirements, re-payment of outstanding borrowings, and general corporate purposes.
Details of Lalbaba Engineering Limited IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX shares |
| Aggregating up to ₨ 10,000.00 million. | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 6,300.00 million. | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 3,700.00 million. | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Lalbaba Engineering Limited IPO: Issue Price & Size
The issue price of LALBABA ENGINEERING LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 10,000.00 million at the price of ₨XXXX.
Launch Date of Lalbaba Engineering Limited IPO
The IPO opening date of LALBABA ENGINEERING LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Lalbaba Engineering Limited
| Particulars (Rs in Millions) | 31st March , 2025 | 31st March , 2024 | 31st March , 2023 |
| INCOME | |||
| Revenue from Operations | 7,716.07 | 5,995.01 | 3,432.96 |
| Other Income | 18.44 | 9.39 | 19.04 |
| Total Income | 7,734.51 | 6,004.40 | 3,452.00 |
| EXPENSES | |||
| Cost of Materials Consumed | 4,612.61 | 3,697.65 | 1,947,77 |
| Change in Inventories of Work in Progress | ( 121.77 ) | ( 252.83 ) | ( 67.78 ) |
| Employee Benefits Expense | 433.53 | 297.68 | 148.40 |
| Finance Costs | 273.45 | 232.54 | 103.98 |
| Depreciation and Amortization Expense | 153.56 | 125.90 | 62.42 |
| Other Expenses | 1,816.91 | 1,534.10 | 1,067.84 |
| Total Expenses | 7,168.29 | 5,635.04 | 3,262.63 |
| Restated Profit / (Loss) before share of profit / (loss) of JVs | 566.22 | 369.36 | 189.37 |
| Share of profit / (loss) of Associates and Joint Ventures | ( 0.20 ) | 3.04 | – |
| Restated Profit / (Loss) before Tax | 566.02 | 372.40 | 189.37 |
| Tax Expense : | |||
| Current Tax | 136.50 | 86.79 | 30.58 |
| Income Tax relating to earlier years | 1.30 | 6.54 | 0.78 |
| Deferred Tax | 3.80 | 12.99 | 15.37 |
| Total Tax Expenses | 141.60 | 106.32 | 46.73 |
| Restated Profit / (Loss) after Tax | 424.42 | 266.08 | 142.64 |
Key financial ratios of Lalbaba Engineering Limited
| KPIs | Unit | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations | ( in millions ) | 7,716.07 | 5,995.01 | 3,432.96 |
| Gross Profit | ( in millions ) | 3,225.23 | 2,550.19 | 1,552.97 |
| Gross Margin % | % | 41.80 % | 42.54 % | 45.24 % |
| EBITDA | ( in millions ) | 974.79 | 718.41 | 336.73 |
| EBITDA Margin % | % | 12.63 % | 11.98 % | 9.81 % |
| PAT | ( in millions ) | 424.42 | 266.08 | 142.64 |
| PAT Margin | % | 5.49 % | 4.43 % | 4.13 % |
| Return On Equity | % | 25.19 % | 24.19 % | 20.03 % |
| Return On Capital Employed | % | 21.01 % | 22.06 % | 16.76 % |
| Net Debt to Equity | Ratio | 1.41x | 1.39x | 1.54x |
| Net Debt to EBITDA | Ratio | 2.67x | 2.74x | 3.60x |
| Cash Conversion Cycle | Days | 82 | 63 | 57 |
| Gross Fixed Asset Tumover Ratio | Ratio | 3.90x | 3.91x | 3.26x |
Promoters & Shareholding Lalbaba Engineering Limited IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100.00% shareholding in company.
| Name of Shareholder | No. of Equity Shares | % of total shareholding |
| Promoters & Promoter Group | ||
| LBIC Engineering Private Limited | 67,935,428 | 66.35 |
| Kishan Dhanuka | 8,563,380 | 8.36 |
| Amit Dhanuka | 7,678,840 | 7.50 |
| Nikunj Dhanuka | 8,148,406 | 7.96 |
| Nishit Dhanuka | 8,148,406 | 7.96 |
| Kishan Dhanuka & Sons HUF | 1,908,800 | 1.86 |
| Rakhi Dhanuka | 640 | N.A |
| Chawi Garodia | 320 | N.A |
| Kriti Dhanuka | 320 | N.A |
| Total (A) | 102,384,540 | 100.00 |
| Public (B) | N.A | N.A |
| Total (A+B) | 102,384,540 | 100.00 |
Should You Subscribe To Lalbaba Engineering Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Lalbaba Engineering Limited IPO
Comprehensive engineering solutions offering
The company operates through three integrated business verticals tubular, forging and rail systems, which together give them domain know-how, end-to-end execution and a proven record of dependable, mission-critical solutions. The vertically integrated engineering approach has enabled company to offer seamless tube, forged products, and rail systems and components which help to serve railways, automotive, energy and industrial infrastructure. As a result, company able to meet diverse, high-specification requirements of their customers, cater to a diverse range of customers, and enhance its ability to attract new customers.
Long standing relationship with marquee customers
The company established long-standing relationships with several of its customers, and a significant portion of company revenue is derived from repeat business. The ability to meet technical specifications and ensure quality control, along with capability to provide customized solutions, enables company to supply products to customers in line with their requirements. These ongoing engagements reflect their ability to meet customer specifications and maintain consistent quality and delivery standard.
Largest cold finished seamless tube manufacturer
Lalbaba Engineering Ltd. is largest cold finished seamless tube manufacturer in India among key players, in terms of installed capacity as of August 31, 2025. CFS tubes cater to diverse end-use sectors including automotive, oil and gas, infrastructure, railways, and energy. This diversified end use profile of CFS provides a natural hedge against cyclical swings, with long cycle railway and energy projects and export opportunities providing additional stability. Through CFS tubes, company delivers sustained growth and margin stability across economic cycle.
Robust financial growth
The company has proven track record of consistent improvement in financial performance led by continuous revenue led profitable growth. The EBITDA increased at a CAGR of 70.14% from ₹ 336.73 million to ₹ 974.79 million between Fiscal 2023 and Fiscal 2025. Whereas revenue from operations increased at a CAGR of 49.92% from ₹ 3,432.96 million to ₹ 7,716.07 million, which resulted in an increase in profit after tax from ₹ 142.64 million in Fiscal 2023 to ₹ 424.42 million in Fiscal 2025.
Risk Factors of Lalbaba Engineering Limited IPO
Tubular solutions drives revenue
The company derives a significant portion of its revenue from operations from thier tubular solutions vertical (representing 41.38%, 43.13% and 70.37% of revenue from operations in Fiscal 2025, 2024 and 2023, respectively) and rail systems vertical (representing 45.19%, 44.78% and 29.18% of revenue from operations in Fiscal 2025, 2024 and 2023, respectively). Any decrease in demand for the products which company manufacture and supply under these verticals, increased competition or pricing pressures may have an adverse impact on business.
Dependency on Indian railways
The business of company is significantly dependent on contracts awarded by the Indian railways and its associated entities (representing 23.18%, 18.99% and 6.08% of revenue from operations in Fiscals 2025, 2024 and 2023, respectively). Any adverse changes in the government policies including reduction in government spending towards railway infrastructure may lead to company existing contracts being foreclosed or reduce opportunities which may have an adverse impact on financial condition.
Supply risk
The company depends on a limited number of suppliers for raw materials for their operations. Purchases from their largest supplier accounted for 31.29%, 27.37% and 25.67% and top 10 suppliers accounted for 69.83%, 72.03% and 87.85% of total purchase on raw materials in Fiscals 2025, 2024 and 2023, respectively. Any loss of these suppliers could adversely affect company business, results of operations and financial condition.
Credit risk
The company is exposed to counterparty credit risk of customers and any macroeconomic conditions, such as a credit crisis in the global financial system could cause customers to delay payments, request modifications of their payment terms, or default on their payment obligations towards company, all of which could increase company receivables and may adversely affect company cash flow position and ability to meet working capital requirements.
Lalbaba Engineering Limited IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the LALBABA ENGINEERING LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
