M&B Engineering Revisits IPO Plans, Refiles for ₹650 Crore Issue

M&B Engineering Ltd. has refiled its draft red herring prospectus (DRHP) with SEBI on February 17, aiming to raise ₹650 crore through an Initial Public Offering (IPO). The Gujarat-based company had previously filed for a ₹653 crore IPO in September 2024, but SEBI returned the papers in December.

IPO Details 

The public issue will include a fresh issue of equity shares worth ₹275 crore and an offer-for-sale (OFS) of ₹375 crore by the company’s promoters. The Patel family, including Girishbhai Manibhai Patel, Chirag Hasmukhbhai Patel, Vipinbhai Kantilal Patel, and Birva Churag Patel, will be selling their shares through the OFS. The company may also raise ₹55 crore through a pre-IPO placement, which would reduce the fresh issue component.

Equirus Capital Pvt. Ltd. and DAM Capital Advisors Ltd. are the book-running lead managers for the IPO, while MUFG Intime India Pvt. Ltd. is the registrar to the offer.

Use of Funds

Proceeds from the fresh issue will go toward capital expenditure for new machinery, equipment, transport vehicles, and building works at its manufacturing facilities. A portion of the funds will also be used for software upgrades, debt repayment, and general corporate purposes.

Business and Operations

M&B Engineering provides pre-engineered buildings (PEBs) and self-supported steel roofing solutions. It operates through two divisions:

• Phenix Construction – Focuses on PEBs and structural steel components.
• Proflex – Specialises in self-supported steel roofing solutions.

The company caters to sectors like general engineering, food and beverages, warehousing, logistics, power, textiles, and railways. As of December 2024, M&B Engineering has executed over 9,400 projects.

As per the reports, M&B Engineering competes with listed companies such as Pennar Industries, Bansal Roofing Products, HIL, Everest Industries, and Interarch Building Products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.