M&B Engineering IPO to list on Wednesday; grey market points to 12% listing premium | Stock Market News

The IPO of M&B Engineering, which recently concluded, is set to debut on the Indian stock exchanges on Wednesday, August 6. The issue received a strong response during its bidding period from July 30 to August 1, resulting in an overall subscription of 38.11 times.

The IPO received total bids for 35.49 crore shares against 93 lakh shares on offer. The retail investors’ portion was subscribed 34.36 times, while the NII and QIB categories were booked 40.22 times and 38.63 times, respectively.

With the bidding now closed, investor focus has shifted to potential listing gains, typically gauged by the grey market premium (GMP). According to market sources, the company’s shares are currently trading at ₹46 in the grey market, indicating a possible listing price of ₹435 per share, about 12% higher than the IPO’s upper price band of ₹385.

The GMP reflects investors’ willingness to pay a premium over the IPO price. The mainboard IPO, valued at ₹650 crore, consists of a fresh issue of 0.71 crore shares aggregating to ₹275 crore and an offer for sale of 0.56 crore shares totaling ₹375 crore. The company’s shares will be listed on both NSE and BSE.

The company plans to utilize the IPO proceeds to fund capital expenditure requirements, including the purchase of equipment and machinery, building works, a solar rooftop grid, and transport vehicles at its manufacturing facilities.

Additionally, funds will be allocated for IT software upgrades, repayment or prepayment of certain borrowings, and general corporate purposes.

About M&B Engineering

The company is one of the country’s leading Pre-Engineered Buildings (PEBs) players, with an installed capacity exceeding 100,000 MTPA. As of March 31, 2025, it had an installed capacity of 103,800 MTPA for PEB structures and 1,800,000 square meters per annum for self-supported roofing solutions, the company stated in its RHP, citing a CRISIL Report.

Its business is structured into two divisions: Phenix, which provides comprehensive solutions for PEBs and complex structural steel components, and Proflex, which offers self-supported steel roofing solutions. The company delivers complete turnkey solutions to its customers, including project design, engineering, manufacturing, and erection, tailored to meet specific requirements across industrial and infrastructure segments.

It has served customers across diverse sectors such as general engineering and manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways. As of March 2025, the company had executed over 9,500 projects under its Phenix and Proflex divisions.

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