M&B Engineering IPO Opens On July 30: GMP Hints Modest Listing Gain – Should you Apply?

M&B Engineering is all set to launch its Initial Public Offering (IPO) tomorrow on July 30. The company, known for its pre-engineered buildings and self-supported roofing systems, has attracted decent interest from investors before its IPO launch. The IPO is of Rs 650 crore.

M&B Engineering IPO Details:

M&B Engineering IPO will start tomorrow, on July 30, 2025 and will remain open for subscription until August 1. Out of the Rs 650 crore IPO, Rs 275 crore is a fresh issue and Rs 375 crore is an offer-for-sale (OFS) by existing shareholders.

The M&B Engineering IPO has a price band set between Rs 366 and Rs 385 per share. Investors can apply in lots, with each lot containing 38 shares. For retail investors, the minimum investment amount is Rs 13,908.

The IPO has been structured to reserve 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors. Additionally, Rs 2 crore worth of shares are reserved for employees at a Rs 36 discount per share.

The allotment of shares is expected to take place on August 4, with shares being credited to demat accounts and refunds processed on August 5. The company's shares are scheduled to be listed on the BSE and NSE on August 6.

The lead managers for the M&B Engineering IPO are Equirus Capital and DAM Capital Advisors. The registrar handling the issue is MUFG Intime India Pvt Ltd.

Objective of the M&B Engineering IPO:

M&B Engineering plans to use the money raised from the IPO for several purposes. Around Rs 130.58 crore will go toward buying equipment and machinery, building works, setting up a solar rooftop grid, and purchasing transport vehicles for its manufacturing facilities.

The company will also invest Rs 5.20 crore in upgrading its IT software. Additionally, about Rs 58.75 crore will be used to repay or prepay some of its loans. The remaining funds will be used for general corporate purposes.

Grey Market Premium (GMP):

As of July 29, the GMP for the M&B Engineering IPO is Rs 34, according to the latest update from the InvestorGain website at 2 PM. This means that there is currently decent premium being paid in the grey market over the issue price.

Since the IPO price band is set at Rs 366 to Rs. 385 per share, the expected listing price, based on today's GMP, is likely to be around Rs 419, about 8.83% higher than the upper end of the issue price band. The M&B Engineering IPO GMP gives a rough idea of possible listing gains, but these GMP numbers often change as the IPO opening date approaches.

Industry Outlook:

'India's pre-engineered building (PEB) sector is projected to grow at a rate of 10-12% over the current and next fiscal year, driven by strong demand from industrial capital expenditure and infrastructure development,' according to a CRISIL report in August 2024. M&B Engineering is well-positioned to benefit from this trend, especially with rising demand for modern construction solutions.

Should You Invest?

M&B Engineering should be subscribed for long term says Bajaj Broking reviewing the IPO.

"M&B Engineering has served over 2,000 clients across industries like engineering, food, logistics, power, textiles, and railways in FY23-FY25. The company, a leading PEB solutions provider with around 9,500 completed projects, posted an average EPS of Rs 11.90 and RoNW of 22.28% over the last three years. The asking P/E is 28.56 (FY25) and 48.19 (FY24)," noted Bajaj Broking.

About M&B Engineering:

Founded in 1981, M&B Engineering is a leading player in the Pre-Engineered Buildings (PEB) and Self-Supported Roofing segment. It has completed over 9,500 projects as of March 2025 and boasts a strong client base including Adani Group, Tata Advanced Systems, Haldiram, and Arvind Ltd. It currently holds a 75% market share in India's self-supported roofing sector, according to CRISIL.

The company provides turnkey solutions, from design and engineering to manufacturing and installation, for industrial and infrastructure sectors.

Financial Performance Of M&B Engineering:

In the financial year 2025, M&B Engineering reported a revenue of Rs 996.89 crore, which is a 24% increase compared to the previous year. The company's profit after tax (PAT) also rose sharply by 69%, reaching Rs 77.05 crore.

Additionally, its total borrowings went down to Rs 186.13 crore in FY25 from Rs 204.84 crore in FY24, showing an improvement in its financial position.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.