M&B Engineering IPO set to list today. GMP indicates mild premium
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M&B Engineering is set to make its stock market debut on August 6 amid cautious optimism from the street. The IPO, which received a healthy subscription of 38.11 times overall, is seeing a grey market premium (GMP) of around 12% ahead of its listing. This implies a possible listing price near Rs 431, as compared to the issue price of Rs 385 per share.The Rs 650 crore public offering comprised a fresh issue worth Rs 275 crore and an offer for sale of Rs 375 crore, with a total of 1.68 crore shares being offered to the public. Bidding took place between July 30 and August 1, and allotments were finalised on August 4.Investor response was strong across all categories. The qualified institutional buyer (QIB) segment was subscribed 38.63 times, non-institutional investors (NII) 40.22 times, and retail investors 34.36 times. The anchor portion had earlier raised Rs 291.60 crore on July 29 from institutional investors, indicating a fair level of pre-listing confidence.M&B Engineering is a player in the pre-engineered buildings (PEBs) and self-supported steel roofing solutions space. The company provides end-to-end design-led engineering, manufacturing, and installation services under two divisions — Phenix and Proflex.The company has executed more than 9,500 projects till March 2025 and has clients across sectors such as logistics, textiles, power, and manufacturing.The IPO proceeds will be used to fund capex, including new machinery and building infrastructure (Rs 130.58 crore), repay certain borrowings (Rs 58.75 crore), invest in IT upgrades (Rs 5.2 crore), and for general corporate purposes. Post-issue, the company's market capitalisation is estimated at Rs 2,200 crore.Financially, M&B Engineering reported a 23% growth in revenue to Rs 996.89 crore and a 69% jump in PAT to Rs 77.05 crore in FY25 compared to the previous year. However, the company's top line has seen some fluctuations in recent years, with FY23 revenues having dipped compared to FY22.While the GMP of 12% signals modest listing gains, long-term investor attention will likely shift to execution timelines, margin sustainability, and sectoral demand cycles, especially in infrastructure-led growth segments.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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