M&M Engineering shares listing on a flat note; deliver no gains to investors

Shares of M&B Engineering made a muted debut at Dalal Street on Wednesday, August 06 as the pre-engineered buildings was listed at the bourses at Rs 386 on BSE, a miniscule premium of 0.26 per cent over its issue price Rs 385 apiece. The stock kicked-off its maiden trading session on a flat note at Rs 385 on NSE, which is the issue price.

The listing has been sharply below the expectations. Ahead of its listing, the grey market premium (GMP) of M&B Engineering has seen a decent rise despite mixed market sentiments. Last heard, the company was commanding a premium of Rs 48-52 per share in the unofficial market, suggesting a muted listing of up to 12-13 per cent to the investors.

Investors made a profit of only Rs 38 on equity shares, which cost Rs 14,630 for the investors. Majority of the retail investors have got a single lot. Similarly, NII investors who got 532 equity shares for Rs 2,04,820 made a profit of merely Rs 532 in the IPO of M&B Engineering.

The IPO of Ahmedabad-based M&B Engineering was open for bidding between July 31 and August 01. It had offered its shares in the price band of Rs 366-385 per share with a lot size of 38 shares. The company raised a total of Rs 650 crore from its IPO, which included a fresh share sale of Rs 275 crore and an offer-for-sale (OFS) of up to Rs 375 crore.

The issue was overall subscribed 36.20 times, fetching more than 14.22 lakh applications. The portion for qualified-institutional bidders (QIBs) was subscribed 36.72 times. The allocation for non-institutional investors (NIIs) was booked 38.24 times. The portions for retail investors and employees were subscribed 32.55 times and 8.13 times, respectively.

The grey market premium (GMP) of M&B Engineering has seen a sharp correction following mild bidding and volatile market sentiments. Last heard, the company was commanding a premium of Rs 45-50 per share in the unofficial market, suggesting a muted listing of up to 12-13 per cent to the investors. The GMP stood around Rs 55-60, when the issue had opened for bidding.

Incorporated in 1981, 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.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it for long-term. Equirus Capital and DAM Capital Advisors were the book-running lead managers of the M&B Engineering IPO, while MUFG Intime (Link Intime) served as the registrar for the issue.