The M&B Engineering IPO closed its final day on a strong note, having been subscribed more than 3.5 times on Day 3, reflecting robust investor interest across retail and non-institutional categories. This impressive traction highlights growing optimism around the company’s fundamentals, future growth prospects, and its solid presence in the infrastructure and steel fabrication domain. The IPO’s Grey Market Premium (GMP) has also remained steady, suggesting a potential listing gain of approximately 14%.
Strong Demand from Investors on Final Day
As per final bidding data, the issue attracted substantial interest, particularly from retail investors and high-net-worth individuals (HNIs). While Qualified Institutional Buyers (QIBs) participation was relatively muted, the overall demand ensured that the IPO ended comfortably oversubscribed.
Subscription Details as on Day 3
| Category | Subscription Status |
|---|---|
| Retail Individual Investors | 10.8x |
| Non-Institutional Investors | 5.6x |
| Qualified Institutional Buyers | 0.2x |
| Total | 3.5x |
This strong retail and HNI response significantly contributed to the overall oversubscription, signaling market trust in the company’s growth vision and sector potential.
Grey Market Premium and Listing Expectations
The Grey Market Premium (GMP) for the M&B Engineering IPO was reported at ₹54–₹55, indicating a solid premium over the upper end of the issue price band of ₹385. Based on this, the stock could potentially list around ₹440 per share, delivering a listing gain of around 14% for those allotted shares during the IPO.
| Parameter | Value |
|---|---|
| IPO Price Band | ₹366 – ₹385 |
| GMP (Unofficial) | ₹54 – ₹55 |
| Expected Listing Price | ~₹440 |
| Potential Listing Gain | ~14% |
About M&B Engineering Limited
Founded in 1981, M&B Engineering Limited is a prominent player in the steel construction industry. The company specializes in Pre-Engineered Buildings (PEBs) and self-supported steel roofing systems, serving diverse industries ranging from manufacturing to logistics and pharmaceuticals.
It has a strong portfolio of over 9,500 completed projects, including exports to 22 countries. Major clients include large industrial players such as Adani, Tata Advanced Systems, Reliance, and L&T. The company’s manufacturing facilities are located in Sanand, Gujarat, and Cheyyar, Tamil Nadu, and are equipped with cutting-edge technology to ensure global-standard quality.
IPO Details Recap
| IPO Element | Details |
|---|---|
| Issue Size | ₹650 crore |
| Fresh Issue | ₹275 crore |
| Offer for Sale (OFS) | ₹375 crore |
| Price Band | ₹366 to ₹385 per share |
| Minimum Lot Size | 38 shares |
| Minimum Investment | ₹14,630 |
| Issue Opening Date | July 30, 2025 |
| Issue Closing Date | August 1, 2025 |
| Allotment Date | August 6, 2025 |
| Tentative Listing Date | August 6 or 7, 2025 |
Utilization of IPO Proceeds
The company plans to use the net proceeds from the IPO for:
- Capacity expansion at its existing manufacturing facilities
- Upgradation of technology and automation
- Repayment of outstanding borrowings
- Working capital needs
- General corporate purposes
These investments aim to enhance operational efficiency and scale up the company’s ability to cater to growing domestic and international demand.
Financial Performance Snapshot
M&B Engineering has demonstrated steady financial growth over recent years, both in terms of revenue and profitability. Here’s a glance at its financials for FY25:
| Financial Metric | FY25 (Estimated) |
|---|---|
| Total Revenue | ₹988 crore |
| Net Profit | ₹77 crore |
| Earnings Per Share (EPS) | ₹13.5 |
| Return on Net Worth (RoNW) | 18.6% |
| EBITDA Margin | 17.7% |
| PAT Margin | 7.8% |
At the upper band price of ₹385, the IPO is valued at a P/E ratio of ~28.5x, which is in line with sector peers, indicating a fair valuation considering the company’s growth potential and profitability.
Key Strengths of M&B Engineering
- Established Brand with 40+ Years Legacy: A pioneer in the steel structure segment with extensive execution history.
- Diversified Client Base: Presence across sectors including FMCG, pharmaceuticals, logistics, oil & gas, and manufacturing.
- Export Capabilities: With presence in 22 countries, M&B Engineering is a globally trusted partner in infrastructure solutions.
- Strong Order Book: As of June 30, 2025, the company’s order book stood at ₹840 crore, indicating strong revenue visibility.
- Cost Efficiency: Strategic procurement and efficient manufacturing operations allow the company to maintain healthy margins.
Key Risks and Concerns
- High Working Capital Requirements: Given the project-based nature of its business, cash flow management becomes crucial.
- Cyclicality in Construction Sector: Fluctuations in demand or raw material prices could impact financial performance.
- Execution Delays: Project-based business models are vulnerable to delays due to external factors like regulatory approvals or material shortages.
- Foreign Exchange Fluctuation: As the company exports a significant portion of its output, currency volatility may pose risks.
Analyst Recommendations
Several brokerage houses and analysts have given a “Subscribe for Long-Term” recommendation, citing the company’s strong fundamentals, stable earnings profile, and the robust demand environment for pre-engineered buildings in India and overseas.
The company’s solid order book, proven project execution ability, and strategic expansion plans have instilled confidence among market participants. Despite high competition in the steel fabrication industry, M&B Engineering is viewed as well-positioned to tap the infrastructure boom in India and emerging markets.
Outlook and Conclusion
The M&B Engineering IPO has managed to strike the right chord with investors, particularly retail and HNI categories. With a decent GMP and solid fundamentals, the company is expected to debut positively on the bourses.
Its strong market position, proven business model, export focus, and capacity expansion plan make it an attractive candidate for both short-term listing gains and long-term wealth creation.
While investors should watch for updates related to allotment and listing dates, the overall IPO response suggests that M&B Engineering could be a strong debutant in the SME and mid-cap IPO space of 2025.
Disclaimer: The article is based on publicly available information and industry analysis as of July–August 2025. Investors are advised to conduct their own due diligence and consult financial experts before making any investment decisions. Grey market premiums are unofficial indicators and should not be considered as guaranteed returns or investment advice.
