M&B Engineering IPO subscribed 2% on day 1: Check GMP, price band, and other key details

Economic Times

6 days ago

M&B Engineering is one of the largest players in the pre-engineered buildings (PEB) and self-supported steel roofing segments.
The IPO, open from July 30 to August 1, is priced in the range of Rs 366 to Rs 385 per share. At the upper end, M&B Engineering's estimated market capitalisation stands at Rs 2,200 crore. Proceeds will go towards capex, debt repayment, and tech upgrades at its Sanand and Cheyyar facilities.
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M&B Engineering IPO Price Band
M&B Engineering IPO GMP
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The initial public offering (IPO) of M&B Engineering was subscribed 2% as of 10:18 am on Day 1 of bidding on Wednesday.The IPO, open between July 30 and August 1, received bids for 2.41 lakh shares against 97.98 lakh shares on offer. Among investor categories, retail investors subscribed to 11% of their quota, while non-institutional investors (NIIs) subscribed 2%. Qualified institutional buyers (QIBs) were yet to place bids.The price band for the issue is fixed at Rs 366 to Rs 385 per share. At the upper end, the company's market capitalisation is estimated at around Rs 2,200 crore.In the grey market, M&B Engineering shares were quoting at a premium of Rs 40–43, suggesting a potential upside of around 10% over the issue price.The net proceeds will be utilised for capital expenditure, debt repayment, and technology upgrades at the company's manufacturing units in Sanand and Cheyyar.M&B Engineering is one of the largest players in the pre-engineered buildings (PEB) and self-supported steel roofing segments, with over 9,500 completed projects and exports to 22 countries.Its client portfolio includes the Adani Group, Tata Advanced Systems, and Alembic Pharma . As of June 30, its order book stood at over ₹840 crore. The company provides end-to-end project solutions including design, fabrication, and erection.For FY25, the company reported revenue of Rs 988 crore and a net profit of Rs 77 crore, with an EPS of Rs 13.5. The IPO is priced at a P/E of 28.5x based on FY25 earnings.Brokerages are positive on the company's fundamentals but note that the issue appears fully priced. Anand Rathi has rated the IPO as 'Subscribe for Long Term,' citing M&B's integrated manufacturing setup, economies of scale, and export momentum, particularly in the U.S. market.Equirus Capital and DAM Capital Advisors are the book-running lead managers.The IPO includes a fresh issue of equity shares worth Rs 275 crore and an offer for sale (OFS) of Rs 375 crore by the promoters.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)