M&B Engineering Limited is one of India’s leading design-led engineering solutions providers, catering to industrial and infrastructure sectors through its two key divisions. The Phenix division specializes in pre-engineered buildings (PEBs) and complex structural steel components, while the Proflex division offers self-supported steel roofing solutions. The company provides comprehensive turn-key services including project design, engineering, manufacturing, and erection tailored to customer needs.

The company has launched its Initial Public Offering (IPO) via a Book Built Issue amounting to ₹650 Crores. This includes a fresh issue of 71.42 lakh shares worth ₹275 Crores and an Offer for Sale (OFS) of 97.40 lakh shares totaling ₹375 Crores. The subscription period for the IPO opens on July 30, 2025, and closes on August 1, 2025. Following subscription, the allotment is expected to be finalized on or about August 4, 2025, with shares slated to list on both the BSE and NSE on or about August 6, 2025.

The price band for the IPO is fixed between ₹366 and ₹385 per equity share. Based on the upper price band of ₹385, the company’s market capitalization at listing is estimated at approximately ₹299.99 Crores. The IPO lot size is set at 38 shares, meaning retail investors need to invest a minimum of ₹14,630, while high-net-worth individuals (HNIs) must subscribe to at least 14 lots (532 shares), equating to ₹2,04,820.

The Grey Market Premium (GMP) for the M&B Engineering IPO is currently estimated at ₹19 per share, suggesting a potential listing gain of around 5.06%. However, GMP is an unofficial indicator based on unregulated trading activity and should be treated cautiously as it does not guarantee real market pricing or listing gains.

As of the morning of July 30, 2025, the IPO’s live subscription status shows a subscription of 0.10 times on its first day, reflecting moderate investor interest initially. Investors can track the subscription status on the BSE website to monitor real-time updates during the subscription period.

The company secured ₹291.60 Crores from Anchor Investors at the upper price band of ₹385 per share. A total of 75,74,026 equity shares were allocated to anchor investors under the Qualified Institutional Buyers (QIBs) category. Anchor investor participation is a strong positive signal indicating institutional confidence in the company’s prospects.

M&B Engineering is promoted and led by experienced professionals including Girishbhai Manibhai Patel with over 40 years of industry experience, along with Chirag Hasmukhbhai Patel, Malav Girishbhai Patel, and others bringing deep expertise in engineering and construction.

The company’s financials show consistent growth, with revenues of ₹9,968.89 million in FY25, up from ₹8,082.60 million in FY24 and ₹8,890.04 million in FY23. EBITDA increased from ₹749.64 million in FY23 to ₹1,347.12 million in FY25, while profit after tax grew steadily from ₹328.92 million in FY23 to ₹770.47 million in FY25. These figures highlight strong operational performance and profitability growth.

Financial ratios indicate a pre-issue Earnings Per Share (EPS) of ₹15.41 and a post-issue EPS of ₹13.48 for FY24. The pre-issue Price-to-Earnings (P/E) ratio stands at 24.98x and post-issue P/E at 28.55x, which is near the industry average P/E of 29x, suggesting the IPO is fairly valued. Return on Capital Employed (ROCE) and Return on Equity (ROE) for FY24 were 24.80% and 25.13% respectively, reinforcing efficient capital management.

The company plans to use the net proceeds from the IPO for several key objectives: capital expenditure for equipment and machinery purchase, building works, solar rooftop grid installation, transport vehicles, IT software upgrades, repayment of certain term loans, and general corporate purposes. These uses aim to support the company’s growth trajectory and operational expansion.

Given the overall financial strength, positive institutional interest, and fair pricing metrics, M&B Engineering’s IPO is positioned to attract investors seeking exposure to India’s engineering solutions sector. However, considering the relatively modest grey market premium and market dynamics, investors should evaluate their risk appetite and consult professional financial advisors before applying.

In conclusion, the M&B Engineering IPO offers an opportunity to invest in a well-established engineering solutions provider with steady growth and diversified business segments. The subscription period from July 30 to August 1, 2025, with allotment expected on August 4, and listing tentatively on August 6, 2025, presents a crucial window for interested investors to participate. Monitoring the IPO subscription and allotment status closely is advised for making informed investment decisions.

This comprehensive review is intended for educational and informational purposes only and does not constitute financial advice. Investors are encouraged to study the company’s detailed offer documents and seek professional guidance before investing in the IPO or secondary markets.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Jyoti Global Plast.

The Current active IPO are B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.