M & B Engineering IPO subscribed 0.10 times on Day 2. Check GMP and other details
K N Mishra
31/Jul/2025

What’s covered under the Article:
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M & B Engineering IPO opens July 30, 2025, with ₹650 Cr issue, GMP at ₹19, listing likely on August 6, 2025
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The IPO includes fresh issue of ₹275 Cr and offer for sale of ₹375 Cr with price band set at ₹366–₹385 per share
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Review suggests avoiding IPO for listing gains due to moderate GMP and fair valuations despite strong fundamentals
M & B Engineering Limited, one of India’s prominent design-led engineering solutions providers, has launched its Initial Public Offering (IPO) on July 30, 2025, with the subscription window open until August 01, 2025. The ₹650 crore Book Built Issue consists of a fresh issue worth ₹275 crore and an offer for sale aggregating ₹375 crore, priced in a band of ₹366 to ₹385 per share.
The company operates through two key divisions:
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Phenix Division: Offers comprehensive PEB (Pre-Engineered Buildings) and complex structural steel component solutions
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Proflex Division: Specializes in self-supported steel roofing structures
The business provides end-to-end turnkey services from project design, engineering, manufacturing to erection, mainly catering to industrial and infrastructure segments.
IPO Details and Financials
At the upper end of the price band (₹385), the market capitalisation of M & B Engineering is estimated at ₹2,999.9 crore. The minimum lot size is 38 shares, requiring a retail investment of ₹14,630. High-net-worth individuals (HNIs) must invest in 14 lots (532 shares), amounting to ₹2,04,820.
The lead managers to the issue are Equirus Capital Private Limited and DAM Capital Advisors Limited, with MUFG Intime India Pvt Ltd as the registrar.
As of 11:00 AM on July 30, 2025, the IPO has seen a subscription of 0.10 times on its first day.
GMP and Listing Expectations
The Grey Market Premium (GMP) for M & B Engineering is reportedly around ₹19, implying an expected listing price of ₹404 (a premium of about 5.06% over the issue price). However, this GMP is unofficial and purely demand-supply driven, with no regulatory backing, hence it should be interpreted cautiously.
Anchor Investor Participation
Ahead of the IPO, M & B Engineering successfully raised ₹291.60 crore from anchor investors at ₹385/share, by allocating 75,74,026 equity shares.
These shares are deducted from the Qualified Institutional Buyers (QIBs) quota and help gauge institutional confidence in the offering.
Financial Performance Overview
The company has demonstrated steady financial growth over the past three years:
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FY23: Revenue – ₹889.00 crore | EBITDA – ₹74.96 crore | PAT – ₹32.89 crore
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FY24: Revenue – ₹808.26 crore | EBITDA – ₹92.82 crore | PAT – ₹45.63 crore
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FY25: Revenue – ₹996.88 crore | EBITDA – ₹134.71 crore | PAT – ₹77.04 crore
This progression reflects the company’s operational efficiency and strong revenue traction.
Valuation Metrics
Key valuation indicators include:
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Pre-issue EPS: ₹15.41
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Post-issue EPS: ₹13.48
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Pre-issue P/E: 24.98x
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Post-issue P/E: 28.55x
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Industry P/E Benchmark: 29x
Other metrics:
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ROCE (FY24): 24.80%
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ROE (FY24): 25.13%
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RoNW: 25.14%
This suggests that the issue is fairly priced and in line with industry averages.
IPO Objectives
The company aims to deploy the IPO proceeds toward:
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₹255.55 crore for capital expenditure, including machinery, solar rooftop grid, vehicles, and infrastructure
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Investment in IT and systems upgrades
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Repayment of term loans, partially or fully
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General corporate purposes
These investments are expected to enhance productivity and modernize operations, aiding long-term growth.
Promoter and Management Team
The company is promoted by experienced professionals:
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Girishbhai Manibhai Patel: 40+ years
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Chirag Hasmukhbhai Patel: 31+ years
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Malav Girishbhai Patel: 24+ years
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Birva Chirag Patel: 16+ years
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Vipinbhai Kantilal Patel: 40+ years
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Aditya Vipinbhai Patel: 13+ years
Their experience spans construction, PEBs, roofing systems, and manufacturing, giving the firm robust leadership.
IPO Allotment & Listing Timeline
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IPO Allotment Date: Monday, August 04, 2025
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Listing Date: Wednesday, August 06, 2025 (tentative)
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Listing Exchanges: BSE and NSE
How to Check IPO Allotment
Investors can check the IPO allotment status via the registrar’s website:
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Visit the IPO allotment page
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Select M & B Engineering IPO from the dropdown
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Enter Application Number / PAN / DP ID-Client ID
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Click Submit to view your allotment status
Day-wise GMP Trend (As of July 28, 2025)
Date | IPO Price | Expected Listing Price | GMP | Last Updated |
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July 28 | ₹385 | ₹404 | ₹19 (5.06%) | 2:00 PM |
IPO Review: Final Verdict
While M & B Engineering shows solid financials, stable growth, and good return ratios, the IPO appears to be fully priced. The GMP suggests modest listing gains of ~5%. Given this limited upside, investors looking for listing gains may consider avoiding the IPO.
However, long-term investors who value steady fundamentals, experienced leadership, and strong project execution may track the company post-listing for potential investment opportunities.
Disclaimer
The above content is for educational and informational purposes only and does not constitute investment advice. Market investments involve risk. Please consult your financial advisor before making any investment decisions.
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