Kolkata-based engineering solutions company Lalbaba Engineering has filed DRHP with the Securities and Exchange Board of India (SEBI) for an INR 1,000 crore IPO. Lalbaba Engineering IPO comprises a fresh issue of shares worth INR 630 crore and an OFS of up to INR 370 crore.
The IPO is being managed by IIFL Capital Services, Motilal Oswal Investment Advisors, and Nuvama Wealth Management, with MUFG Intime India as the registrar.
Company Overview
Founded on the legacy of Lalbaba Industrial Corporation (established in 1966), the company has evolved into a fully integrated engineering solutions provider. Today, it operates across three verticals:
- Tubular Solutions (cold finished seamless tubes)
- Forging Solutions (precision forged components)
- Railway Systems (integrated rail solutions, modernisation, and retrofits)
As of 31 August 2025, Lalbaba Engineering is India’s largest manufacturer of cold-finished seamless (CFS) tubes by installed capacity and the second-largest overall in cold-finished steel tubes, according to CRISIL.
Product Portfolio
The company manufactures a diverse range of products that cater to railways, automotive, energy, oil & gas, industrial infrastructure, and export markets.
- Automotive: steering columns, stabilizer bars, drive shafts, fuel injection, suspension and braking system tubes.
- Railways: braking system tubes (air brake, double ferrule), slack adjusters, bogie underframes.
- Energy: boiler tubes, rifled & U-bend heat exchanger tubes, condensers.
- Industrial & Infrastructure: hydraulic cylinder tubes, bearing tubes, drill rods, anchor bars, casings, and structural tubing.
Its proprietary LALBABA PRIME™ series of micro-alloyed grades and the Uniflow™ continuous cold drawing process differentiate it technologically. The Uniflow system consolidates 16 production steps into a single flow, reducing process time by 80% and lowering costs compared to conventional methods.
Manufacturing Footprint
Lalbaba operates three facilities in West Bengal — Haldia, Uluberia, and Ghusuri — and a joint venture plant (IDPT) in Badli, Haryana with Germany’s Poppe + Potthoff GmbH.
- Haldia facility: Installed CFS tube capacity of 65,000 MTPA (to be scaled to 2,35,000 MTPA by FY27). FY25 utilization ~45%.
- Uluberia facility: Forging capacity 8,400 MTPA; utilization ~66% in FY25.
- Ghusuri facility: Air brake equipment capacity 2,400 MTPA; utilization ~75% in FY25.
- Badli JV: Focused on automotive tubes for airbags, piston pins, and fuel injection systems, with 15,000 MTPA capacity.
The company has also commissioned the Lalbaba Metals Innovation Centre (42,599 sq. ft.) in Howrah to centralize R&D and accelerate product innovation.
Lalbaba Engineering IPO: Financial Performance
The company has delivered robust growth in recent years:
- Revenue from operations: INR 343.3 crore (FY23) → INR 599.5 crore (FY24) → INR 771.6 crore (FY25), CAGR 49.9%.
- Profit After Tax (PAT): INR 14.3 crore (FY23) → INR 26.6 crore (FY24) → INR 42.4 crore (FY25).
- EBITDA: INR 33.7 crore (FY23) → INR 71.8 crore (FY24) → INR 97.5 crore (FY25), CAGR 70.1%.
- Margins: Gross margin ~42%; EBITDA margin ~12.6% in FY25; PAT margin ~5.5%.
- ROCE: Consistently above 20% in FY24 and FY25; RONW 25.3% in FY25.
- Leverage: Net debt-to-equity ~1.4x; Net debt-to-EBITDA improved from 3.6x (FY23) to 2.7x (FY25).
Customers & Exports
Lalbaba Engineering enjoys long-standing relationships with marquee clients:
- Railway integrators: Texmaco Rail, Titagarh Rail Systems, Jupiter Wagons, Sona BLW.
- Automotive Tier-1s: Marathwada Auto Compo, ACV Suspansiyon Sistemleri (Turkey).
- Energy sector PSUs and industrial clients like ISGEC Heavy Engineering.
The company supplies to 18+ countries, including the USA, Canada, Mexico, Brazil, Turkey, UAE, France, Germany, Italy, and Spain. Exports accounted for a meaningful portion of FY25 revenues.
Repeat business contributed ~78% of FY25 revenue, highlighting customer stickiness in regulated industries with high entry barriers.
Competitive Strengths
- Largest CFS tube manufacturer in India, with technology leadership (LALBABA PRIME™, Uniflow™).
- Integrated portfolio across tubes, forgings, and rail systems → multi-product supplier to key customers.
- High entry barriers in regulated sectors (railways, energy, auto).
- NABL-accredited labs and multiple ISO certifications.
- Strategic location advantage: proximity to ports (Haldia, Kolkata) and rolling stock manufacturers.
Promoters & Shareholding
As of DRHP filing:
- LBIC Engineering: 66.4%
- Kishan Dhanuka: 8.4%
- Nikunj & Nishit Dhanuka: ~8% each
- Amit Dhanuka: 7.5%
- Kishan Dhanuka & Sons HUF: 1.9%
Total: ~100% held by promoter group.
Outlook
With strong positioning in railways, automotive, and energy, and expanding capacity in CFS tubes, Lalbaba Engineering is set to benefit from:
- Indian Railways’ modernisation & private wagon demand.
- Automotive shift towards lightweight, high-strength tubular solutions.
- Export opportunities in advanced economies.
The company’s consistent profitability, improving capital efficiency, and marquee customer base provide confidence. However, investors will closely watch execution of capacity expansion at Haldia, raw material price volatility, and debt levels.
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