M&B Engineering Limited, one of India’s top design-led engineering solutions providers, has launched its ₹650 crore Book Built IPO. The issue includes a fresh issue of ₹275 crore (71.42 lakh shares) and an offer for sale of ₹375 crore (97.40 lakh shares). The IPO opened for subscription from July 30 to August 1, 2025, with allotment finalisation expected on August 4, 2025, and a tentative listing date of August 6, 2025 on both BSE and NSE.

The price band has been set at ₹366 to ₹385 per equity share, with a lot size of 38 shares. For retail investors, the minimum investment required is ₹14,630, while HNIs need to invest a minimum of ₹2,04,820 (14 lots). At the upper price band, the market capitalisation of the company stands at ₹2,999.9 crore.

Business Overview

M&B Engineering operates through two primary divisions:

• Phenix Division: Offers pre-engineered buildings (PEBs) and complex structural steel components.

• Proflex Division: Specialises in self-supported steel roofing solutions.

The company provides end-to-end turnkey solutions, from design and engineering to manufacturing and erection. Their services are utilised across industrial and infrastructure segments, delivering high-value and customised solutions.

Promoters and Leadership

The company boasts a leadership team with extensive industry experience:

• Girishbhai Manibhai Patel – 40+ years

• Chirag Hasmukhbhai Patel – 31+ years

• Malav Girishbhai Patel – 24+ years

• Birva Chirag Patel – 16+ years

• Vipinbhai Kantilal Patel – 40+ years

• Aditya Vipinbhai Patel – 13+ years

Their collective expertise spans engineering, roofing, construction, and manufacturing sectors.

Financial Performance

The company has reported consistent financial growth over the past three fiscal years:

• Revenue from Operations:

  • FY23: ₹889.00 crore

  • FY24: ₹808.26 crore

  • FY25: ₹996.88 crore

• EBITDA:

  • FY23: ₹74.96 crore

  • FY24: ₹92.82 crore

  • FY25: ₹134.71 crore

• Profit After Tax (PAT):

  • FY23: ₹32.89 crore

  • FY24: ₹45.63 crore

  • FY25: ₹77.04 crore

These numbers reflect steady and healthy growth, with increasing profitability year-over-year.

Valuation and Ratios

Based on FY24 financials:

• Pre-Issue EPS: ₹15.41

• Post-Issue EPS: ₹13.48

• Pre-Issue P/E: 24.98x

• Post-Issue P/E: 28.55x

• Industry Average P/E: 29x

• ROCE: 24.80%

• ROE: 25.13%

• RoNW: 25.14%

These metrics suggest that the IPO is fairly priced, offering moderate growth potential with balanced risk.

Use of IPO Proceeds

The company intends to utilise the net proceeds from the IPO as follows:

1. ₹25.55 crore for capital expenditure, including machinery, solar rooftop grid, and vehicles.

2. Investment in IT software upgrades.

3. Pre-payment or repayment of existing loans.

4. General corporate purposes.

Anchor Investment

M&B Engineering raised ₹291.60 crore from anchor investors by allotting 75,74,026 equity shares at ₹385 per share. This demonstrates institutional confidence in the company’s fundamentals.

Grey Market Premium (GMP)

As of July 28, 2025, the GMP stood at ₹19, indicating a 5.06% potential listing gain. However, grey market trading is unofficial and based on demand and supply in the unorganised market. The GMP is mentioned only for educational purposes and is not a reliable indicator of listing performance.

Live Subscription Status

As of 12:00 PM on August 1, 2025, the IPO was subscribed 3.00 times, showing strong interest from investors, especially retail and HNI categories.

IPO Subscription Process (Recap)

• Issue Open: July 30 to August 1, 2025

• Allotment Date: August 4, 2025

• Tentative Listing: August 6, 2025

• Registrar: MUFG Intime India Private Limited

• Lead Managers: Equirus Capital, DAM Capital Advisors

Allotment Status: How to Check

To check your IPO allotment:

1. Visit the registrar website.

2. Select M&B Engineering Limited IPO.

3. Enter your PAN, Application Number, or DP Client ID.

4. Click submit to view your allotment status.

Expert Opinion and Listing Strategy

Despite strong financial performance, healthy anchor investment, and subscription, experts suggest avoiding this IPO solely for listing gains due to its fair valuation and modest GMP.

While the IPO may suit long-term investors who believe in India’s infrastructure and engineering sectors, short-term traders may not benefit much from the listing. Given the GMP of just ₹19, the listing pop could be limited.

Final Verdict

• Strengths:

  • Strong business model with two verticals

  • Comprehensive turnkey engineering solutions

  • Proven financial track record

  • Healthy anchor investor backing

• Risks:

  • Modest GMP

  • High valuation

  • Limited short-term upside

Conclusion:

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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The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem.

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M&B Engineering IPO is a stable long-term play in India's growing infrastructure and engineering space. However, due to its fair pricing and limited GMP, investors are advised to avoid it for short-term listing gains. Long-term investors with a strong risk appetite and belief in the sector may consider it.