M and B Engineering Ltd, one of India’s prominent design-led engineering solutions providers, is currently in the spotlight with its ₹650 crore IPO that opened for subscription from July 30 to August 01, 2025. The IPO comprises a fresh issue of ₹275 crore and an Offer for Sale worth ₹375 crore. The price band has been fixed at ₹366 to ₹385 per equity share, with a lot size of 38 shares for retail investors.

The company functions under two primary divisions:

• The Phenix division, which specialises in Pre-Engineered Buildings (PEBs) and structural steel components

• The Proflex division, offering self-supported steel roofing solutions

The IPO allotment is expected on August 4, 2025, and listing is scheduled tentatively on August 6, 2025, on BSE and NSE.

Company Profile and Operations

M and B Engineering delivers end-to-end turnkey solutions, which include project design, engineering, manufacturing, and erection. These services are provided across diverse industrial and infrastructure segments. Their expertise in steel-based infrastructure has made them a trusted partner for many large-scale construction projects.

The promoters of the company bring significant industry experience:

• GIRISHBHAI MANIBHAI PATEL – over 40 years

• CHIRAG HASMUKHBHAI PATEL – over 31 years

• MALAV GIRISHBHAI PATEL – over 24 years

• BIRVA CHIRAG PATEL – over 16 years

• VIPINBHAI KANTILAL PATEL – over 40 years

• ADITYA VIPINBHAI PATEL – over 13 years

This rich experience base gives the company a significant operational and strategic edge in the competitive Indian infrastructure sector.

Financial Performance

The financials of M and B Engineering reflect consistent growth across the last three financial years:

• FY 2025 Revenue: ₹9,968.89 million

• FY 2024 Revenue: ₹8,082.60 million

• FY 2023 Revenue: ₹8,890.04 million

• FY 2025 EBITDA: ₹1,347.12 million

• FY 2024 EBITDA: ₹928.22 million

• FY 2023 EBITDA: ₹749.64 million

• FY 2025 Profit After Tax (PAT): ₹770.47 million

• FY 2024 PAT: ₹456.34 million

• FY 2023 PAT: ₹328.92 million

These figures highlight a steady growth trajectory, signalling a resilient business model and strong management capability.

IPO Valuation Metrics

At the upper end of the price band:

• Pre-issue EPS (FY24): ₹15.41

• Post-issue EPS (FY24): ₹13.48

• Pre-issue P/E: 24.98x

• Post-issue P/E: 28.55x

• Industry P/E: 29x

• ROCE (FY24): 24.80%

• ROE (FY24): 25.13%

• RoNW: 25.14%

These indicators suggest the IPO is reasonably priced, though listing gains may not be significantly high due to current market dynamics.

IPO Subscription and Anchor Investment

On the final day of subscription (August 01, 2025), as of 12 PM, the IPO has been subscribed 3.00 times, which shows strong demand despite limited excitement in the grey market.

The company has successfully raised ₹291.60 crore from anchor investors at ₹385 per share, indicating positive institutional interest. A total of 75,74,026 equity shares were allocated to these anchor investors.

IPO Grey Market Premium (GMP)

As of July 28, 2025, the Grey Market Premium (GMP) for M and B Engineering IPO stood at ₹19, implying a 5.06% expected listing gain. However, GMP does not guarantee actual listing performance, as it is based on unofficial market sentiment.

Caution: GMP should be seen only for informational purposes, and investment decisions should be based on fundamental analysis.

IPO Objectives

The company plans to use the net proceeds from the IPO for the following purposes:

1. ₹255.55 lakh for capital expenditure on equipment, solar rooftop grid, transport vehicles, and buildings

2. Investment in IT software upgrades

3. Repayment or pre-payment of term loans

4. General corporate purposes

This indicates a strong focus on capacity building, tech enhancement, and debt reduction—all positive long-term moves.

IPO Allotment and How to Check

The allotment date is August 4, 2025 (Monday). Investors can check allotment status through these steps:

• Visit the registrar website (MUFG Intime India)

• Select M and B Engineering IPO

• Enter Application Number / PAN / DP Client ID

• Submit to view allotment status

Final Recommendation

Despite the solid fundamentals and 3 times subscription, the low GMP of 5% suggests muted listing day excitement. The stock may be fairly valued, but it is unlikely to deliver strong listing gains.

Verdict: Avoid M and B Engineering IPO for listing gains

Long-term investors seeking quality engineering infrastructure exposure may consider evaluating post-listing price performance before entering.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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