M&B Engineering is set to launch its initial public offering (IPO) on July 30, 2025, with the subscription window closing on August 1, 2025. The IPO, which has a price band of ₹366– ₹385 per share, comprises a fresh issue worth ₹275 crore and an offer-for-sale (OFS) of ₹375 crore by promoters. With the lot size fixed at 38 shares, the minimum retail investment comes to ₹13,908. The offering will be managed by Equirus Capital and DAM Capital Advisors as book-running lead managers.
Here are the 10 most important takeaways from the company’s Red Herring Prospectus (RHP):
1. Market Leadership in PEB and Roofing
M&B Engineering is a key player in India’s Pre-Engineered Buildings (PEB) and Self-Supported Roofing market. As of December 31, 2024, the company had an installed capacity of 103,800 MTPA for PEB and 1,800,000 square metres per annum for roofing. CRISIL reports that the company held a 75 percent market share in India’s self-supported steel roofing segment in FY24, making it the country’s largest player in this space.
2. IPO Objectives
The net proceeds from the fresh issue will be used to:
Acquire new equipment and machinery for manufacturing facilities,
Repay or prepay certain borrowings,
Fund working capital requirements, and
Support general corporate purposes.
3. Key IPO Dates
Basis of allotment: August 4, 2025
Refund initiation: August 5, 2025
Demat credit: August 5, 2025
Listing date (tentative): August 6, 2025 on BSE and NSE
4. Strong Client Base
The company has executed over 9,400 projects over the last 23 years and served more than 2,000 customer groups across industries. Prominent names include:
Adani Group entities (Adani Ports, Adani Logistics, Adani Green Energy),
Tata Advanced Systems, Intas Pharmaceuticals, Alembic, AIA Engineering, Balaji Wafers, Haldiram, Arvind Ltd, and SMC Power Generation.
Long-standing customer relationships, some over 15 years, have led to high levels of repeat business.
5. Peer Comparison
Listed peers mentioned in the RHP include:
Pennar Industries – P/E of 25.23
Bansal Roofing Products – P/E of 28.39
Interarch Building Products – P/E of 33.69
Other peers include BirlaNU Ltd and Everest Industries Ltd, placing M&B in a competitive segment with moderate-to-high valuations.
6. Segment Outlook – Infrastructure to Dominate
The infrastructure sector is expected to continue leading PEB demand, contributing 39–41 percent by 2028, followed by buildings (36.5–38.5 percent) and industrial applications (21.5–23.5 percent). Rising awareness of PEB benefits and government-driven infrastructure initiatives will support this demand.
7. Strong Industry Growth Prospects
India’s PEB market grew at an 8 percent CAGR between FY19 and FY24, expanding from ₹130 billion to ₹195 billion. The industry is expected to grow by another 8 percent in FY25 to ₹210 billion, and log 10–11 percent CAGR between FY24 and FY29, reaching ₹315–330 billion. Key growth drivers include investments in logistics, warehouses, toll plazas, and expressways.
8. Airport Infrastructure Boom
According to CRISIL, India will witness ₹620–670 billion in airport-related capital expenditure between FY25 and FY29. This includes greenfield projects such as Jewar, Navi Mumbai, and Bogapuram airports, alongside brownfield expansions in Bangalore, Hyderabad, and Chennai. M&B Engineering is poised to benefit from this increased activity in structural steel construction.
9. Allotment Structure
The IPO allocation is as follows:
QIBs: Not less than 75 percent
NIIs: Not more than 15 percent
Retail investors: Not more than 10 percent
Additionally, ₹20 million worth of shares are reserved for employees, who will also receive a ₹36 per share discount under the employee reservation portion.
10. Leveraging Market Leadership
With a strategic focus on turnkey solutions—including design, engineering, manufacturing, and installation—M&B Engineering aims to deepen its footprint in infrastructure and industrial segments. The company is banking on its technical expertise, execution record, and skilled workforce to capitalize on India’s growing adoption of structural steel in construction.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
