M&B Engineering IPO opens today: Should you subscribe to it?

The initial public offering (IPO) of M&B Engineering  kicks-off for bidding on Wednesday, July 30. The realty company is offering its shares in the range of Rs 366-385 apiece. Investors can apply for a minimum of 38 equity shares and its multiples thereafter. The IPO closes for bidding on Friday, August 01.

M&B Engineering is looking to raise a total of Rs 650 crore via its IPO, which is includes a fresh share sale of Rs 275 crore and an offer-for-sale (OFS) of up to 97,40,259 equity shares worth Rs 375 crore. The net proceeds from the issue shall be utilized towards funding the capex, investment in IT software upgradation, repayment of debt and general corporate purposes.

Incorporated in 1981, Ahmedabad-based M&B Engineering is engaged in the business of pre-engineered buildings and self-supported roofing solutions. They manufacture and install self-supported steel roofing solutions in India. It offers design-led manufacturing solutions, providing design, engineering, manufacturing, and testing to ensure reliable, safe, and high-performance structures.

M&B Engineering raised Rs 291.6  crore from anchor investors as it finalised allocation of 75.74 lakh shares to at Rs 385 apiece. Institutional investors like Ashoka India, Abu Dhabi Investment Authority, Integrated Core Strategies, Societe Generale, and Pinebridge Global Funds participated in the anchor book.

For the year ended on March 31, 2025, M&B Engineering reported a net profit of Rs 77.05 crore with a revenue of Rs 996.89 crore. The company clocked a net profit of Rs 45.63 crore with a revenue of Rs 808.26 crore for the financial year ended on March 31, 2025. The company shall command a total market capitalization close to Rs net profit of close to Rs 2,200 crore.

The company has reserved 75 per cent of the net offer for the qualified institutional bidders, while non-institutional investors will have 15 per cent of the offer allocated for them. Retail investors will have 10 per cent of the reservation in the IPO. Eligible employees of the company, who have a reservation of 57,307 equity shares, will get a discount of Rs 36 per share.

Equirus Capital and DAM Capital Advisors are the book-running lead managers of the M&B Engineering IPO, while MUFG Intime (Link Intime) is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, August 6. Here's what a host of brokerage firms said about the IPO of M&B Engineering:  

Nirmal Bang Securities Rating: Subscribe M&B Engineering has a strong track record with over 9,500 projects and a solid order book of Rs 842.8 crore. It leads peers in financial performance with the highest ROE, ROCE, and strong Ebitda margins. It shows consistent revenue growth and solid capital efficiency, said Nirmal Bang Securities with a 'subscribe' rating citing its robust order book, profitability, and fair valuation.  

Chola Securities Rating: Subscribe Asset-light project execution in the Proflex division allows M&B to scale volume without proportionate capex, which, coupled with high fixed-cost absorption at existing plants, supports sustainable RoCE expansion. Margin-accretive exports are likely to become a structural driver, as international orders are primarily for fabrication only, said Chola Securities.

"The IPO values the company at 28.5 times FY25 P/E, which appears reasonable given its improving margin profile, and expanding addressable opportunity in domestic and export PEB markets. We have issued a 'subscribe' rating for M&B Engineering IPO for listing gains," it said.  

Arihant Capital Markets Rating: Subscribe for long-term M&B Engineering is the largest and fastest growing D2C home and furnishing solutions destination which is a full-stack vertically integrated operation with differentiated processes and technical capabilities. They have full-stack vertically integrated operations with differentiated processes and technical capabilities, said Arihant Capital Markets.

"They are synergistic, and are doing data-driven product category expansion with a focus on scaling their operations. At the upper band of Rs 385, the issue is valued at a PE of 28.55 times based on FY25. We are recommending a 'subscribe for long term' rating for this issue," it added.  

Anand Rathi Shares & Stock Brokers Rating: Subscribe for long-term While high dependence on raw material prices and a limited sector focus remain key risks, its leadership in PEBs, pan-India manufacturing footprint, and steady expansion into global markets provide long-term growth visibility. Hence, we recommend a 'subscribe for long-term' rating to the issue, said Anand Rathi.  

Canara Bank Securities Rating: Subscribe The issue is fairly priced, at a discount of its listed peers which trade at an average. It  has the highest Ebitda margin and PAT margin when compared to its peers, said Canara Bank Securities. "It is well poised as it can take advantage of expanding margin as it can produce in India and export globally with much better realisations. We recommend 'subscribe' for long-term gains," it said.  

SBI Securities Rating: Neutral The company faces stiff competition from its major peers. On the valuation front, the company is valued at a PE of 28.6 times based on FY25 earnings on post-issue capital basis which looks fairly valued, said SBI Securities. "We maintain a 'neutral' view on IPO and would like to monitor the performance of the company vis-à-vis its major peers post listing," it added.  

SMIFS Rating: Subscribe "We recommend subscribing to the issue, given the company’s strong structural positioning to benefit from industry tailwinds, with significant headroom for capacity ramp-up at both Sanand and Cheyyar facilities. With optimal utilisation and new capex deployment, revenue has the potential to double from current levels over the long term, making it a compelling opportunity," said SMIFS.