M&B Engineering IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Incorporated in 1981 and renamed in 2011, M & B Engineering Limited is a leading player in the Pre-Engineered Metal Buildings (PEB) and structural steel segment, offering end-to-end turnkey solutions including project design, engineering, manufacturing, and erection. The company operates through two key divisions:

• Phenix Division: A core contributor to the business, it specializes in PEB solutions and structural steel fabrication. With over 15 years of experience, it has delivered 1,600+ projects and supplied approximately 640,000 MT of steel across 22 countries.
• Proflex Division: Focused on self-supported steel roofing systems, this segment provides design, technical consultation, and on-site installation using mobile manufacturing setups.

As of March 31, 2025, the company had a manufacturing capacity of 103,800 MTPA for PEB structures and 1,800,000 sq. meters annually for roofing solutions. It operates two strategically located manufacturing units in Sanand (Gujarat) and Cheyyar (Tamil Nadu).

The company has executed over 9,500 projects and caters to marquee clients such as Adani Green Energy, Tata Advanced Systems, Intas Pharmaceuticals, and Haldiram. Its domestic footprint is backed by a robust marketing and regional office network across major Indian cities. Internationally, it serves 22 countries and has a wholly-owned subsidiary in Texas, USA, supporting its global ambitions.

IPO Details:

Objects of Issue:

• Funding Capital Expenditure
  A portion of the IPO proceeds will be used to purchase new machinery and upgrade existing infrastructure, enabling the company to expand production capacity and improve manufacturing efficiency.
• Repayment of loan
  The part of the issue proceeds will be used for repaying the loans in full or partially.
• General Corporate Purposes
  The remaining funds will be utilised for strategic initiatives such as brand enhancement, administrative costs, and potential business development opportunities, helping strengthen the company’s overall positioning and financial flexibility.

Key Strengths:

• Established Track Record in Precision Engineering
  With over two decades of experience, M&B Engineering has built strong domain expertise in precision machining for complex industrial applications. Its reputation for quality and reliability has enabled long-term relationships with domestic and international OEMs.
• Diverse Industry Exposure
  The company serves critical sectors such as oil & gas, power, automotive, and general engineering. This diversified client base reduces dependence on any single sector and enhances revenue stability.
• Modern Infrastructure and Technological Capability
  M&B operates two well-equipped manufacturing facilities with advanced CNC and VMC machinery. Its focus on automation, quality systems, and continuous process improvements ensures adherence to global engineering standards.
• Export-Oriented Growth Strategy
  A growing share of revenues is derived from exports to developed markets, backed by strong quality certifications and global client approvals. This positions the company well for international expansion and margin enhancement.

Risks:

• Client Concentration Risk
  A significant portion of the company's revenue comes from a limited number of clients. Any reduction in orders or loss of a major customer could materially impact financial performance and cash flows. For Fiscal 2025, 54.89% of consolidated revenue came from the top 10 customer groups, and 42.64% from the top 5.
• Dependency on Specific Sectors
  M&B Engineering derives a sizable share of its business from cyclical industries such as oil & gas and power. A slowdown or capex cut in these sectors may adversely affect order inflows and profitability.
• Dependence on Manufacturing Facilities and Operational Risk
  The Company’s business revenue relies heavily on its two manufacturing facilities in Sanand, Ahmedabad, and Cheyyar, Tamil Nadu. Delays in capacity expansion, machinery procurement, or quality failures in precision components could affect customer satisfaction and order continuity, impacting growth plans.

Financial Snapshot:

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Conclusion:

M&B Engineering Ltd presents a compelling investment opportunity in the niche segments of Pre-Engineered Buildings and structural steel fabrication, backed by a robust execution history, diversified clientele, and growing export presence. Its established track record, strong infrastructure, and dual-division business model allow it to cater to both industrial and infrastructure demand across domestic and global markets. The company’s ongoing capex and strategic initiatives, supported by IPO proceeds, aim to further enhance operational efficiency and production scale.

Notably, the issue is priced at a reasonable valuation compared to listed peers. Its current financial metrics, including PE ratio, Return on Equity (ROE), Return on Capital Employed (ROCE), and overall profitability, stand stronger than most competitors in the space. This offers potential for valuation rerating, especially as export-led growth gains traction. While risks around client concentration and sectoral cyclicality remain, the company’s engineering capabilities and planned expansion provide comfort. Overall, the IPO offers a well-rounded proposition for investors seeking exposure to the industrial capex cycle.

Considering the company’s growth potential and low valuations, we suggest our investors subscribe to this IPO for the listing gains.