M&B Engineering Ltd, one of India’s leading design-led engineering solutions providers, has launched its initial public offering (IPO) on 30 July 2025, opening up new investment opportunities for retail and institutional investors. The IPO will close on 01 August 2025, with listing expected on the BSE and NSE around 06 August 2025.

This IPO is a Book Built Issue amounting to ₹650 crore, comprising a Fresh Issue of ₹275 crore (71.42 lakh equity shares) and an Offer for Sale (OFS) worth ₹375 crore (97.40 lakh equity shares).

Company Overview

M&B Engineering Ltd operates two major business verticals:

• The Phenix Division, which delivers comprehensive solutions for pre-engineered buildings (PEBs) and complex structural steel components, primarily for infrastructure and industrial sectors.

• The Proflex Division, which focuses on self-supported steel roofing solutions, a key area in modern industrial construction.

What distinguishes M&B Engineering from competitors is its end-to-end turnkey project model, which includes project design, engineering, manufacturing, and erection, tailored to specific customer requirements.

IPO Details and Investment Breakdown

• IPO Price Band: ₹366 to ₹385 per equity share

• Lot Size: 38 shares

• Minimum Retail Investment: ₹14,630 (1 lot)

• Minimum HNI Investment: ₹2,04,820 (14 lots or 532 shares)

• Market Capitalisation at upper price band: ₹2,99.99 Crores

The IPO is being managed by Equirus Capital Private Limited and DAM Capital Advisors Limited as the book-running lead managers, while MUFG Intime India Private Limited is the registrar to the issue.

Anchor Investors Participation

Ahead of the IPO, Anchor Investors infused ₹291.60 crores into the company by subscribing to 75,74,026 equity shares at ₹385 per share, which indicates a reasonable institutional interest.

Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) for the IPO currently stands at ₹19, which implies a listing price of approximately ₹404, or 5.06% gain over the issue price. However, GMP is an unofficial indicator, and no actual trading is conducted in this market. It reflects demand-supply sentiments, not price discovery, and is advised to be taken with caution.

IPO Subscription Status (Day 1)

As of 11:00 AM on 30 July 2025, the IPO has been subscribed 0.10 times, suggesting a tepid initial response from the market. Final subscription figures will provide clearer sentiment.

Use of IPO Proceeds

The net proceeds from the IPO will be used for:

1. ₹255.55 lakh towards capital expenditure including machinery, building infrastructure, solar rooftop grid and transport vehicles.

2. Investment in upgrading IT software systems.

3. Pre-payment or repayment of certain term loans availed by the company.

4. General corporate purposes, strengthening the overall business foundation.

Company’s Financial Performance

M&B Engineering has shown a steady growth in its financials:

• Revenue from operations:

  • FY2023: ₹889.00 crore

  • FY2024: ₹808.26 crore

  • FY2025: ₹996.88 crore

• EBITDA:

  • FY2023: ₹74.96 crore

  • FY2024: ₹92.82 crore

  • FY2025: ₹134.71 crore

• Profit After Tax (PAT):

  • FY2023: ₹32.89 crore

  • FY2024: ₹45.63 crore

  • FY2025: ₹77.04 crore

The consistent increase in PAT shows robust bottom-line growth, even amidst sectoral competition.

Valuation and Key Metrics

• Pre-Issue EPS (FY24): ₹15.41

• Post-Issue EPS (FY24): ₹13.48

• Pre-Issue P/E Ratio: 24.98x

• Post-Issue P/E Ratio: 28.55x

• Industry P/E: ~29x

• Return on Capital Employed (ROCE): 24.80%

• Return on Equity (ROE): 25.13%

• Return on Net Worth (RoNW): 25.14%

The IPO appears fairly priced, with valuation metrics aligned with the industry standard.

Leadership and Promoter Experience

The company is promoted and managed by an experienced leadership team, including:

• Girishbhai Manibhai Patel – 40+ years of industry experience

• 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 cumulative experience spans PEBs, construction, steel roofing, and turnkey projects, strengthening the company's leadership.

IPO Recommendation and Outlook

While the company’s fundamentals are strong, and the financial performance has been consistent, the modest GMP and fair valuation suggest that listing gains may be limited.

Given the IPO's pricing, current GMP, and sector outlook, short-term investors may consider avoiding it for listing gains. However, long-term investors seeking exposure to the infrastructure and steel construction segment may explore participation after personal evaluation.

How to Check IPO Allotment Status (After August 4, 2025)

1. Visit the registrar website (MUFG Intime India Pvt Ltd).

2. Select "M&B Engineering Ltd" from the dropdown.

3. Enter your Application No., PAN or DP Client ID.

4. Click Submit to view your allotment status.

Final Words

M&B Engineering’s IPO brings an established industrial name to the public market with a decent track record, professional management, and a scalable business model. However, listing gains may be capped due to only 5% GMP and valuation being in line with industry peers.

Investors are advised to evaluate their investment goals—whether short-term listing gains or long-term growth prospects—before participating in the IPO.

Disclaimer

The above analysis is for educational and informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Kindly consult your financial advisor before investing.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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.