M & B Engineering Ltd is a leading Indian design-led engineering solutions provider, structured into two main business divisions: the Phenix division which delivers comprehensive solutions for Pre-Engineered Buildings (PEBs) and complex structural steel components, and the Proflex division offering self-supported steel roofing solutions. The company provides end-to-end turnkey services including project design, engineering, manufacturing, and erection tailored to customer specifications across industrial and infrastructure sectors.

IPO Details

The company is launching a Book Built Issue IPO totaling ₹650 Crores, which includes a fresh issue of 71.42 lakh shares worth ₹275 Crores and an Offer for Sale of 97.40 lakh shares totaling ₹375 Crores. The subscription period runs from 30 July to 1 August 2025, with allotment expected on 4 August 2025. The shares are planned to be listed on the BSE and NSE around 6 August 2025.

The price band is fixed between ₹366 and ₹385 per equity share. The market capitalization at the upper price band will be approximately ₹299.99 Crores. The lot size is 38 shares, with retail investors needing a minimum investment of ₹14,630 and High-Net-Worth Individuals (HNIs) requiring at least 14 lots (532 shares), amounting to ₹2,04,820.

Equirus Capital Private Limited and DAM Capital Advisors Limited are the book running lead managers, with MUFG Intime India Private Limited serving as the registrar.

Grey Market Premium and Market Sentiment

The IPO shows a Grey Market Premium (GMP) of ₹19, reflecting an expected listing price near ₹404 per share — roughly a 5.06% premium over the upper band price. This indicates modest upside potential. However, Grey Market Premiums are unofficial and should be used only for informational purposes, not as a price guarantee.

Financial Performance

M & B Engineering has shown steady financial growth over the recent years:

• FY 2023: Revenue ₹8,890.04 Million | EBITDA ₹749.64 Million | PAT ₹328.92 Million

• FY 2024: Revenue ₹8,082.60 Million | EBITDA ₹928.22 Million | PAT ₹456.34 Million

• FY 2025: Revenue ₹9,968.89 Million | EBITDA ₹1,347.12 Million | PAT ₹770.47 Million

These figures demonstrate consistent improvement in revenues and profitability.

Key ratios include a pre-issue EPS of ₹15.41 and post-issue EPS of ₹13.48 for FY24. The pre-issue P/E ratio is 24.98x, with a post-issue P/E of 28.55x, close to the industry P/E of 29x. The company's ROCE is 24.80%, ROE is 25.13%, highlighting good capital efficiency and return to shareholders.

Promoters and Management

The company is backed by an experienced promoter group:

• Girishbhai Manibhai Patel with 40+ years in the sector

• Chirag Hasmukhbhai Patel with over 31 years of experience

• Other key members with significant experience in pre-engineered buildings, roofing, construction, and manufacturing sectors

IPO Objectives

The net proceeds will be primarily used for:

1. Capital expenditure for equipment, machinery, building works, solar rooftop grids, and transport vehicles at manufacturing facilities.

2. IT software upgrades.

3. Repayment or prepayment of certain term loans.

4. General corporate purposes.

How to Check IPO Allotment

Applicants can check the allotment status from 4 August 2025 on the registrar website by selecting the IPO name and entering their application details like PAN, application number, or DP Client ID.

Investment Outlook

While M & B Engineering shows a solid operational track record and growth, the relatively low Grey Market Premium of 5.06% suggests limited listing gains. Investors seeking significant listing profits might consider avoiding the IPO. The valuation is in line with industry averages, indicating the stock might be fairly priced for long-term investors but less attractive for short-term listing gains.

Disclaimer:
This article is intended solely for educational and informational purposes and does not constitute financial advice. Investors should consult with financial advisors before investing. Data is based on publicly available information as of publication date and may change. Past performance does not guarantee future results.

The Upcoming IPOs in this week and coming weeks are Highway Infrastructure, Flysbs Aviation, Part Electricals & Engineering, Jyoti Global Plast, M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Sri Lotus Developers & Realty, Jyoti Global Plast, B.D. Industries (Pune), NSDL.

The Current active IPO are Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono, Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities.

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