M&B Engineering Limited is launching its Initial Public Offering (IPO) to strengthen the capital base and support future lending and business growth. The IPO comprises a fresh issue of 275.00 crore shares aggregating to Rs. 0.71 crores and an offer for sale of 0.97 crore shares aggregating to Rs. 275.00 crores with a face value of Rs. 10 each.
The total offer size aggregates up to Rs. 650.00 crore. The IPO opens for subscription on July 30, 2025, and closes on August 1, 2025. The shares will be listed on both the NSE and the BSE after the IPO concludes.
GMP of M&B Engineering Ltd IPO
As of July 29th, 2025, the shares of M&B Engineering Ltd in the grey market were trading at an 8.83 percent premium. The shares in the Grey Market traded at Rs. 419. This gives it a premium of Rs. 34 per share over the cap price of Rs. 385.
Overview of M&B Engineering Ltd
M&B Engineering Limited, established in 1981, specializes in Pre-Engineered Buildings (PEBs) and self-supported steel roofing solutions. The company offers comprehensive design, engineering, manufacturing, and testing services to ensure high-performance, safe, and reliable structures.
It operates two manufacturing plants in Sanand, Gujarat, and Cheyyar, Tamil Nadu, with a combined PEB capacity of 103,800 MTPA. The company exports PEBs and structural steel components to 22 countries, including the USA, Brazil, and South Africa, since 2010.
M&B’s services are divided into two divisions: Phenix and Proflex. The Phenix Division provides integrated manufacturing solutions for PEBs using advanced software and equipment to deliver cost-effective, high-quality projects.
The Proflex Division manufactures and installs self-supported steel roofing on-site using mobile units, handling panel production, seaming, and installation. To date, M&B has completed over 9,500 projects across various industries such as manufacturing, logistics, power, and textiles.
Promoters of M&B Engineering Ltd
The promoters of Laxmi India Finance Ltd., including Girishbhai Manibhai Patel, Chirag Hasmukhbhai Patel, Malav Girishbhai Patel, Birva Chirag Patel, Vipinbhai Kantilal Patel, Aditya Vipinbhai Patel, and various family trusts (Chirag H Patel Family Trust, Vipin K Patel Family Trust, MGM5 Family Trust, MGM11 Family Trust, and Aditya V Patel Family Trust), bring extensive expertise in the field of Pre-Engineered Buildings (PEBs) and self-supported steel roofing solutions. Their leadership is characterized by a strong focus on innovation, design-led manufacturing, and high-performance engineering solutions.
Offer For Sale
The Offer for Sale includes promoter and promoter group selling shareholders: Girishbhai Manibhai Patel (up to ₹1,533.50 million worth of equity shares), Chirag Hasmukhbhai Patel (up to ₹1,302.50 million worth of equity shares), Vipinbhai Kantilal Patel (up to ₹187.50 million worth of equity shares), Birva Chirag Patel (up to ₹385.00 million worth of equity shares), Aditya Vipinbhai Patel (up to ₹187.50 million worth of equity shares), and Umaben Girishbhai Patel (up to ₹154.00 million worth of equity shares). The exact number of shares to be sold will be based on the final offer price.
Lead Managers of M&B Engineering IPO
Equirus Capital Private Limited and DAM Capital Advisors Limited are acting as the Book Running Lead Manager. MUFG Intime India Private Limited (Formerly Link Intime India Private Limited) is the registrar managing investor applications and allotment.
Objectives of the IPO Offer
The proceeds from M&B Engineering’s IPO will be used for the following Objectives: ₹130.58 crore for capital expenditure, including purchasing equipment, machinery, and vehicles, as well as building works and a solar rooftop grid at their manufacturing facilities; ₹5.20 crore for IT software upgrades, ₹58.75 crore for the repayment or pre-payment of term loans, and the remaining funds for general corporate purposes.
Financial Analysis of M&B Engineering Ltd
M&B Engineering Ltd.’s financial performance has shown strong growth over recent years. Revenue increased from ₹889.00 crore in FY23 to ₹808.26 crore in FY24, marking a decline of 9%, but rebounded significantly to ₹996.89 crore in FY25, reflecting a 23% growth.
Profit after tax (PAT) grew consistently, rising from ₹32.89 crore in FY23 to ₹45.63 crore in FY24, an increase of 39%, and further accelerating to ₹77.05 crore in FY25, reflecting a 69% growth.
Over the past three years, M&B Engineering’s revenue has grown at a CAGR of approximately 5.76%, while profit grew at a CAGR of around 32.47%, indicating improving operational performance and increasing profitability.
M&B Engineering Ltd Vs Peers
M&B Engineering Ltd. reported a face value of ₹10 per equity share for FY2025. The company’s basic and diluted EPS stood at ₹15.41, with a net asset value (NAV) per share of ₹61.31, and a return on net worth (RONW) of 25.14%.
In comparison, Pennar Industries Ltd., with a face value of ₹5 per share, reported a basic and diluted EPS of ₹8.84, an NAV of ₹73.99, and a P/E ratio of 25.23, reflecting solid profitability. Bansal Roofing Products Ltd, with a face value of ₹10 per share, posted a basic and diluted EPS of ₹4.20, an NAV of ₹25.13, and a P/E ratio of 28.39, indicating moderate earnings and valuation.
Along with it, BirlaNU Ltd. reported a loss per share with basic and diluted EPS of ₹(43.63), resulting in a non-applicable P/E ratio, a negative RONW of -2.72%, and an exceptionally high NAV of ₹1,606.51, which reflects a distressed financial position. Everest Industries Ltd., with a face value of ₹10, recorded a negative EPS of ₹(2.28), a non-applicable P/E ratio, a negative RONW of -0.60%, and an NAV of ₹377.13, showing a challenging financial situation.
Finally, Interarch Building Products Ltd., with a face value of ₹10, reported a basic EPS of ₹68.51, a diluted EPS of ₹68.03, an NAV of ₹451.56, and a P/E ratio of 33.69, reflecting strong earnings and high valuation.
M&B Engineering Ltd Strengths and Weaknesses
Strengths:
- One of the players in terms of installed capacity in the domestic PEB industry, with presence in international markets, and market leader in the domestic self-supported roofing industry.
- They provide a wide range of specialised products and services, making us a comprehensive solution provider for our customers.
- Relationships with customers across a diverse set of industries with an order book of Rs 8,428.38 million as of June 30, 2025.
- Strategically located manufacturing facilities for PEBs with comprehensive in-house design and engineering capabilities and 14 mobile manufacturing units for self-supported roofing systems.
Weakness:
- Revenue Dependency on PEB Demand: A decline in demand for pre-engineered buildings could adversely affect business, revenue, and financial stability.
- Quality Standards and Performance Risks: Failure to meet customer performance or quality standards could result in order cancellations, claims, or penalties, harming reputation and operations.
- Reduced Cash Flow: Subdued operating cash flows may limit business growth and affect financial obligations, jeopardizing overall stability.
- Conflict of Interest: Potential conflicts of interest due to shared interests of Directors and Promoters in similar businesses, impacting decision-making and business interests.
Conclusion
M&B Engineering Ltd.’s IPO provides an opportunity to invest in a leading player in the pre-engineered buildings (PEBs) and steel roofing solutions sector. With consistent revenue and profit growth, strong operational performance, and a global footprint, the company is poised for further expansion. Backed by experienced promoters, M&B Engineering is well-positioned to benefit from rising demand in its industry. Investors should consider potential market risks and competition before investing.
Written by Sridhar J
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