As the final day of bidding is about to wrap up, M&B Engineering’s Rs 650 crore IPO is making some noise in the primary market. The offer, which opened for subscription on July 30 and will close today, August 1. Lets take a look at the market buzz, investor appetite, and other key details of this mainboard issue –
M&B Engineering IPO: Subscription numbers so far
By Day 3, the IPO had received 7.94 times overall subscription s far. The retail portion led the charge, oversubscribed by 19.14 times. Non-institutional investors (NIIs) were not far behind either, subscribing 15.47 times their quota.
However, interest from institutional buyers remained muted, with the QIB segment seeing a subscription of just 0.46 times.
M&B Engineering IPO: Grey market premium
In the grey market, M&B Engineering’s shares are currently trading at a premium of Rs 64 over the issue price. This puts the estimated listing price at Rs 449 per share, which is about 16.6% higher than the IPO’s upper price band of Rs 385.
However, it is worth noting that GMP is an informal indicator, and the final outcome will depend on broader market mood.
M&B Engineering IPO: IPO snapshot
The IPO comprises both a fresh issue and an offer for sale. The company aims to raise Rs 275 crore through fresh equity, while existing shareholders will offload Rs 375 crore worth of shares through the OFS route.
The capital raised will be used for modernising manufacturing units in Sanand and Cheyyar, reducing debt, and investing in technology upgrades.
M&B Engineering IPO: About the company
M&B Engineering is a player in the pre-engineered buildings (PEB) and steel roofing spaces.
The company counts major names like the Adani Group, Tata Advanced Systems, and Alembic Pharma among its clients. As of June-end, its order book stood at over Rs 840 crore.
M&B Engineering IPO: Allotment, listing and other key details
The allotment for the IPO is expected to be completed by Monday, August 4, with the shares likely to debut on the BSE and NSE on August 6.
Financially, M&B Engineering posted revenue of Rs 988 crore and a net profit of Rs 77 crore in FY25, which translates into an EPS of Rs 13.5. At the upper price band, the IPO is valued at a P/E of around 28.5x, with a projected market cap near Rs 2,200 crore.