IPO Details
Issue Opening Date:July 30, 2025
Issue Closing Date: August 1, 2025
Issue Size: ₹ 650 Cr (@ upper price band of ₹ 385)
Fresh Issue: ₹ 275 Cr
OFS: ₹ 375 Cr
Price Band: ₹ 366 to ₹ 385 per Equity Share
Employee Discount: ₹ 36/share
Lot Size: 38 Shares & multiples thereafter
Minimum Application Amount: ₹ 14,630 (38 Shares)
Maximum Application Amount: ₹ 1,90,190 (494 Shares)
Small HNI: ₹ 2,04,820 (532 Shares)
Big HNI: ₹ 10,09,470 (2,622 Shares)
Our View: Subscribe for Long Term Horizon
Company Overview
M & B Engineering Ltd. is one of India’s leading Pre-Engineered Buildings (PEBs) players with an installed capacity exceeding 100,000 MTPA. Its business operates through two key divisions:
Phenix Division: Comprehensive solutions for PEBs and complex structural steel components.
Proflex Division: Self-supported steel roofing solutions.
The company provides turnkey solutions including project design, engineering, manufacturing, and erection tailored to client needs across industrial and infrastructure sectors.
As of March 2025, M & B Engineering has executed over 9,500 projects under its two divisions, serving more than 2,000 customers between FY23–FY25. Notable clients include Adani Group, AIA Engineering, Alembic Pharmaceuticals, Tata Advanced Systems, and Balaji Wafers.
The company operates two manufacturing plants located in Sanand, Gujarat and Cheyyar, Tamil Nadu, exporting to 22 countries including the USA.
Key Highlights
Leading player in domestic PEB industry with strong international presence.
Wide range of specialised products and services.
Long-term customer relationships with diverse industries.
Order book of ₹ 8,428.38 million as of June 30, 2025.
Strategically located manufacturing facilities.
Consistent financial performance track record.
Objects of the Issue
Capital expenditure for equipment, machinery, building works, solar rooftop grid, and vehicles at manufacturing facilities – ₹ 130.58 Cr.
Investment in IT software upgradation – ₹ 5.2 Cr.
Repayment/pre-payment of certain term loans – ₹ 58.75 Cr.
General corporate purposes.
Offer for Sale of ₹ 375 Cr (no proceeds to the company).
Our View
Established in 1981, M & B Engineering specialises in high-performance steel structures and roofing systems, delivering complete design-to-installation solutions.
Its long-standing relationships with marquee clients and repeat business underpin its revenue stability. The domestic structural steel market is projected to grow at 11–12% CAGR between FY25–FY30, driven by significant infrastructure investments.
Risks: Operational risks from heavy machinery, revenue concentration in PEBs (~77%), maintaining quality consistency, fluctuating raw material costs, order cancellations, policy changes, and reliance on repeat customers.
Financials: FY23–FY25 CAGR – Revenue: 6%, EBITDA: 38%, PAT: 53%. FY25 EBITDA margin: 12.78%, PAT margin: 7.73%, ROCE: 24.8%, ROE: 25.13%. Debt-to-equity position and valuation suggest the issue is fully priced.
Conclusion: Backed by industry growth prospects and robust client base, M & B Engineering offers a compelling long-term play in India’s infrastructure sector. Investors with a long-term horizon may consider subscribing.
Brief Financials
| PARTICULARS |
₹ in Million |
| FY ‘25 |
FY ’24 |
FY ‘23 |
| Total Income |
9,968.89 |
8,082.60 |
8,890.04 |
| Total Expenditure |
8,946.53 |
7,473.76 |
8,435.20 |
| EBITDA |
1,263.77 |
796.22 |
664.30 |
| Profit before Tax |
1,022.36 |
608.84 |
454.84 |
| Profit after Tax |
770.47 |
456.34 |
328.92 |
| E.P.S. (Diluted) |
15.41 |
9.17 |
6.82 |
| P/E (x) (Diluted) |
25 |
- |
- |
| RONW (%) |
25.13 |
19.58 |
18.22 |
PRICE CHART (@ ₹ 385) (Retail Category)
| LOT SIZE |
| Amount |
| 38 |
14,630 |
| 76 |
29,260 |
| 114 |
43,890 |
| 152 |
58,520 |
| 190 |
73,150 |
| 228 |
87,780 |
| 266 |
102,410 |
| 304 |
117,040 |
| 342 |
131,670 |
| 380 |
146,300 |
| 418 |
160,930 |
| 456 |
175,560 |
| 494 |
190,190 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
532 |
204,820 |
| Big HNI |
2,622 |
1,009,470 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
4/8/2025 |
| Initiation of refunds/unblocking ASBA Fund |
5/8/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
5/8/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
6/8/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
