M&B Engineering IPO subscribed over 3.5x on Day 3. Check GMP and other key details
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The initial public offering (IPO) of M&B Engineering was subscribed 3.5 times as of 10:12 am on Friday, the third and final day of bidding.The issue received bids for 3.43 crore shares against 97.98 lakh shares on offer. Retail investors led the demand with a 10.81 times subscription, followed by non-institutional investors (NIIs) at 5.6 times. The qualified institutional buyer (QIB) portion was subscribed just 2%.In the grey market, M&B Engineering shares were quoting at a premium of Rs 54–55, indicating a potential listing gain of around 14% over the upper end of the price band The IPO price band is set at Rs 366–385 per share. At the upper end, the company's market capitalisation is estimated at around Rs 2,200 crore. Based on FY25 earnings, the issue is priced at a P/E of 28.5x.The company plans to utilise the net proceeds for capital expenditure, debt repayment, and technology upgrades at its 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 clientele includes the Adani Group, Tata Advanced Systems, and Alembic Pharma . As of June 30, the company's order book stood at over Rs 840 crore. It offers 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, translating to an EPS of Rs 13.5.Brokerages are largely positive on the company's business fundamentals but highlight that the issue appears fully priced. Anand Rathi has rated the IPO as 'Subscribe for Long Term,' citing M&B's integrated manufacturing setup, scale advantages, and export growth, especially in the US market.Equirus Capital and DAM Capital Advisors are the book-running lead managers for the IPO, which includes a fresh issue of Rs 275 crore and an offer for sale (OFS) of Rs 375 crore by the promoters.
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