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IPO Debut: M&B Engineering Draws Solid Interest on Opening Day
M&B Engineering Ltd, a leading player in pre-engineered buildings (PEBs) and self-supported roofing solutions, launched its ₹650 crore initial public offering on July 30, 2025. By the end of Day 1, the IPO was subscribed 66 percent, with retail investors driving early momentum. The offering, which includes both fresh equity and an offer-for-sale (OFS), is set to close on August 1.
Key Highlights from Day 1 Subscription Activity
- Overall subscription reached 66 percent of the total issue size
- Retail Individual Investors (RIIs) oversubscribed their quota by 2.58 times
- Non-Institutional Investors (NIIs) subscribed 66 percent of their allocation
- Qualified Institutional Buyers (QIBs) yet to show significant participation
- Employee category received 2.14 times subscription
IPO Structure and Financial Details
The ₹650 crore IPO comprises a fresh issue of ₹275 crore and an OFS of ₹375 crore by promoters. The price band is set between ₹366 and ₹385 per share, with a minimum lot size of 38 shares for retail investors. At the upper end of the price band, the company’s estimated market capitalization stands at ₹2,200 crore.
- Anchor investors contributed ₹291.60 crore ahead of the IPO launch
- Grey market premium (GMP) indicates a listing price of ₹428, about 11 percent above issue price
- Allotment expected on August 4, with listing scheduled for August 6 on BSE and NSE
Company Profile and Market Position
Founded in 1981, M&B Engineering operates two manufacturing facilities in Sanand, Gujarat and Cheyyar,
Tamil Nadu. The company has an installed capacity of 103,800 metric tonnes per annum for PEBs and 1.8 million square meters annually for roofing. It has completed over 9,500 projects and exports to 22 countries including the US, Brazil, South Africa, and Sri Lanka.
- Offers turnkey structural solutions across sectors like logistics, textiles, power, and infrastructure
- Operates under two divisions: Phenix (PEB projects) and Proflex (roofing systems)
- FY25 revenue stood at ₹1,420.15 crore with a net profit of ₹343.12 crore
Use of Proceeds and Strategic Expansion
The proceeds from the fresh issue will be used to fund capital expenditure, repay debt, and support general corporate purposes. A major portion will go toward equipment upgrades, solar rooftop installations, and IT enhancements across its facilities.
- ₹130.58 crore earmarked for capex over FY25–28
- ₹58.75 crore allocated for debt repayment
- Remaining funds to support working capital and corporate initiatives
Investor Sentiment and Analyst Outlook
Brokerages have responded positively to M&B Engineering’s fundamentals, citing its strong manufacturing footprint, export momentum, and leadership in the PEB segment. However, analysts caution about sector concentration and raw material cost volatility.
- Anand Rathi recommends “Subscribe for Long Term”
- Company’s P/E ratio compares favorably with peers like Pennar Industries and Everest Industries
- Export growth and Cheyyar facility ramp-up expected to boost FY26 performance
Conclusion: A Promising Start with Room to Grow
M&B Engineering’s IPO debut reflects strong retail enthusiasm and a promising outlook for long-term investors. As institutional participation picks up and listing nears, the company’s strategic expansion and export capabilities position it well for sustained growth in India’s infrastructure and industrial sectors.
Source: Livemint, July 31, 2025
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