M&B Engineering IPO: Full Details & Investment View

M&B Engineering Limited has officially opened its Initial Public Offering (IPO) for public bidding from 30th July 2025 to 1st August 2025. With an issue size aggregating up to ₹650.00 crore, the company aims to raise fresh capital and facilitate an offer for sale (OFS) for existing shareholders. Given its positive financials, robust grey market premium (GMP), and strong industry potential, this IPO has generated buzz among investors.

In this detailed report, we cover every aspect of the M&B Engineering IPO — from its structure and pricing to financial performance, GMP trends, and investment prospects. Whether you’re a retail investor, HNI, or institutional buyer, this article will guide your investment decision.

1. IPO Structure & Key Dates

The IPO comprises a fresh issue of 71,42,857 shares (worth ₹275 crore) and an offer for sale of 97,40,259 shares (worth ₹375 crore), totaling 1,68,83,116 equity shares. The company has fixed a price band of ₹366 to ₹385 per share, with a face value of ₹10.

Key Timelines:

The registrar to the issue is MUFG Intime India Private Limited, which will oversee allotment and refund processes.

2. IPO Price Band and Lot Size

The price band for the IPO is fixed at ₹366 to ₹385 per share. Investors can bid in multiples of the lot size, which is 38 shares per lot. Therefore, a retail investor would require a minimum investment of ₹14,630 (for 38 shares at the lower end of the band).

3. Share Reservation Details

As a bookbuilding issue, the allocation of shares across investor categories is as follows:

• Qualified Institutional Buyers (QIBs): Minimum 75% of the net offer

• Non-Institutional Investors (NIIs or HNIs): Maximum 15%

• Retail Investors: Maximum 10%

This allocation signals a QIB-heavy IPO, indicating expectations of strong institutional interest.

4. Use of IPO Proceeds

The ₹275 crore raised through the fresh issue will be used for:

• Capital expenditure towards plant and machinery

• Working capital requirements

• Repayment/prepayment of borrowings

• General corporate purposes

The offer for sale will enable existing shareholders to monetize part of their holding.

5. Grey Market Premium (GMP) Trend

The Grey Market Premium, a key sentiment indicator in the IPO ecosystem, has shown moderate fluctuations leading up to the IPO.

As of the latest GMP on 28th July 2025, investors can expect listing gains of approximately ₹32 per share, implying a listing price of ₹417 if market sentiments remain stable.

6. Company Overview

M&B Engineering Limited is an infrastructure and industrial equipment solutions provider specializing in high-efficiency construction systems, fabrication, heavy engineering products, and machinery solutions for infrastructure and energy sectors.

Key Highlights:

• Over 25 years of experience

• Diverse clientele including government and private EPC players

• Expanding export footprint in Southeast Asia and Africa

• ISO-certified manufacturing facilities

For more information, visit their official website: www.mbengineering.com

7. Financial Performance (FY24 vs FY25)

A review of the financials demonstrates healthy growth and profitability.

This indicates that M&B Engineering has not only expanded its topline but also significantly improved its margins and return ratios.

8. Technical and Valuation Analysis

Key Metrics:

• PE Ratio: 24.98 (post-issue)

• EPS: ₹15.41

• Return on Net Worth (RoNW): 25.14%

• Price to Book Value: 6.28

• Market Capitalization (Estimated): ₹2,200 crore

These figures suggest that the IPO is moderately priced compared to industry peers, considering its strong growth potential and profitability metrics.

9. Industry Outlook

The Indian engineering and industrial infrastructure sector is expected to grow at a CAGR of 9.5% from 2025 to 2030, driven by:

• Government capex push in railways, defence, and highways

• Green energy projects and power transmission expansion

• Urban infrastructure developments under Smart City and PM Gati Shakti initiatives

M&B Engineering is well-positioned to benefit from these mega trends, given its portfolio, order book, and operational scale.

10. Risk Factors

Despite promising fundamentals, investors should be aware of the following risks:

• High dependency on infrastructure projects, vulnerable to policy delays

• Volatility in raw material prices (steel, alloys)

• Export market uncertainty due to global economic slowdown

• Competition from domestic and international engineering firms

11. Brokerages & Market Sentiment

Leading brokerage firms have shown a bullish stance:

• ICICI Securities: “Strong fundamentals and visible earnings growth. Subscribe for listing gains and long-term.”

• Axis Capital: “Fair valuation with sound financials. Good opportunity for investors.”

• HDFC Securities: “Positive GMP and robust revenue growth support a favourable outlook.”

12. Investment Verdict

Should you subscribe to the M&B Engineering IPO?

Here’s a summary to help you decide:

The M&B Engineering IPO appears to be a fundamentally solid offering with attractive listing prospects and strong long-term potential. It offers investors an opportunity to participate in the infrastructure and industrial equipment boom India is poised to experience.

13. Final Thoughts

As the IPO closes on 1st August 2025 and listing is scheduled for 6th August 2025, investors should consider bidding early and monitor GMP and QIB subscription levels closely. The company’s consistent financial performance, robust sectoral positioning, and positive broker sentiment make it a compelling addition to growth-oriented portfolios.

Always remember to evaluate your financial goals and risk appetite before subscribing to any IPO.

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