M&B Engineering IPO opens today: GMP up 11%; should you subscribe?

M&B Engineering IPO comprises a fresh issue of 7.1 million equity shares and an OFS of 9.7 million equity shares

M&B Engineering IPO: The initial public offering (IPO) of pre-engineered buildings player, M&B Engineering, opens for public subscription today, July 30, 2025. At the upper end of the price band of ₹366 to ₹385, the company aims to raise ₹650 crore. The mainline offering comprises a fresh issue of 7.1 million equity shares and an offer for sale (OFS) of 9.7 million equity shares. 

 

On Tuesday, July 29, the company raised ₹292 crore from the anchor investors. Abu Dhabi Investment Authority, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Whiteoak Capital Mutual Fund, Kotak Mutual Fund, Bandhan Mutual Fund, JM Financial Mutual Fund and ITI Mutual Fund were the institutions that participated in the anchor, according to an exchange filing. M&B Engineering has allotted 7.5 million equity shares to 24 funds at ₹385 per share. 

M&B Engineering IPO grey market premium (GMP)

The unlisted shares of M&B Engineering were trading at ₹428 in the grey market, up ₹43 or 11.17 per cent from the upper end price, according to sources tracking unofficial market activities.

Anand Rathi Research - Subscribe for long term

According to analysts at Anand Rathi Research, M&B Engineering's strength lies in its integrated operations, in-house design, and engineering teams, widespread execution track record, and a diversified customer base across industrial and infrastructure sectors. The company will also benefit from long-standing relationships with clients such as Adani Group, Tata Advanced Systems, and Alembic Pharma, which reinforce customer stickiness.   ALSO READ | Sri Lotus Developers IPO opens today: GMP up 29%; should you apply? 

On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 28.5 times, and a post-issue market capitalisation of approximately ₹2,200 crore, making the issue appear fully priced at current levels," the brokerage said.

 

It also highlighted high dependence on raw material prices and a limited sector focus as key risks to the business. "We recommend a 'Subscribe for long-term' rating to the issue," the brokerage said. 

Arihant Capital - Subscribe for long-term

According to Arihant Capital, M&B Engineering is the largest and fastest growing D2C home and furnishing solutions destination which is a full stack vertically integrated operations with differentiated process and technical capabilities. 

 

"They have a full-stack vertically integrated operations with differentiated processes and technical capabilities. They

are synergistic, and are doing data-driven product category expansion with a focus on scaling their operations. At the upper band of ₹385, the issue is valued at a PE of 28.55x based on FY25," the brokerage said. 

 

Arihant Capital assigned a 'Subscribe for long-term' rating for the issue.  ALSO READ | NSDL IPO opens: Analysts upbeat on fair valuation; should you subscribe? 

Here are the key details of M&B Engineering IPO:

M&B Engineering IPO is available at a price band of ₹366 to ₹385 per share, with a lot size of 38 shares. Accordingly, investors can bid for a minimum of one lot or 38 shares of M&B Engineering and in multiples thereof.

 

The minimum amount required by a retail investor to bid for the IPO is ₹14,630 at the upper end price. A retail investor can bid for a maximum of 13 lots or 494 shares, amounting to ₹1,90,190.

 

The three-day subscription window to bid for the issue will conclude on Friday, August 1, 2025. Following the closure of the subscription window, the basis of allotment of shares is likely to take place on Monday, August 4, 2025. Shares of M&B Engineering are scheduled to make their D-street debut on Wednesday, August 6, by listing on the BSE and NSE.

 

MUFG Intime India is the registrar of the issue. Equirus Capital and DAM Capital Advisors are the book-running lead managers.

 

According to the red herring prospectus (RHP), the company proposes to utilise the net fresh issue proceeds for the purchase of equipment and machinery, building works, solar rooftop grid and transport vehicles at their manufacturing facilities, investment in information technology software upgradation, and repayment of debt. The remaining funds will be used for general corporate purposes.