IPO Details
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IPO Size
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Schedule of M&B Engineering Ltd IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares of face value of Rs. 10 each (equity shares) of M & B Engineering Limited (the company or the issuer) for cash at a price of Rs. [] per equity share (offer price) aggregating up to Rs. 653.00 crores (the offer). The offer comprises of a fresh issue of up to [] equity shares by the company aggregating upto Rs. 325.00 crores (the fresh issue) and an offer for sale of up to [] equity shares (the offered shares) including up to [] equity shares aggregating up to Rs. 132.60 crores by Girishbhai Manibhai Patel, up to [] equity shares aggregating up to Rs. 110.10 crores by Chirag Hasmukhbhai Patel, up to [] equity shares aggregating up to Rs. 12.30 crores by Vipinbhai Kantilal Patel (held jointly with leenaben Vipinbhai Patel), up to [] equity shares aggregating up to Rs. 37.50 crores by Birva Chirag Patel, up to [] equity shares aggregating up to Rs. 13.00 crores by Aditya Vipinbhai Patel and up to [] equity shares aggregating up to Rs. 7.50 crores by Leenaben Vipinbhai Patel (held jointly with Vipinbhai Kantilal Patel) (collectively the promoter selling shareholders), up to [] equity shares aggregating up to Rs. 15.00 crores by Umaben Girishbhai Patel (the promoter group selling shareholder and together with the promoter selling shareholders the selling shareholders) aggregating up to Rs. 328.00 crores (the offer for sale). The offer shall constitute [] % of the post-offer paid-up equity share capital of the company. The offer includes a reservation of up to [] equity shares, aggregating up to Rs. [] crores (constituting up to [] % of the post-offer paid-up equity share capital), for subscription by eligible employees (employee reservation portion). The offer less the employee reservation portion is hereinafter referred to as the net offer. The offer and the net offer shall constitute [] % and [] %, respectively, of the post-offer paid-up equity share capital of the company. The company may, in consultation with the brlms, offer a discount up to Rs. [] to the offer price to eligible employees bidding in the employee reservation portion (employee discount). The face value of the equity shares is Rs. 10 each and the offer price is [*] times the face value of the equity shares. The price band and the minimum bid lot size and employee discount (if any) will be decided by the company.
About M & B Engineering Limited IPO
M & B Engineering Limited IPO is an IPO aggregating up to ₹650 crores. It consists of an offer for sale aggregating up to ₹375 crores and a fresh issue aggregating up to ₹275 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.
Objective of M & B Engineering Limited IPO
- Funding the capital expenditure requirements for the purchase of equipment and machinery at their manufacturing facilities.
- Re-payment or pre-payment, in full or in part, of certain borrowings availed by the company.
- Funding the working capital requirements of the company.
- General corporate purposes.
M & B Engineering Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹ 375 crores |
Fresh Issue | Aggregating up to ₹275 crores |
EPS (₹) For the year ended March 31, 2024 | 9.17 |
M & B Engineering Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not less than 75% of the Issue |
Non-Institutional Investors (NIIs) | Not more than 15% of the Issue |
Retail Individual Investors | Not more than 10% of the Issue |
Industry Outlook
Pre-engineered construction is gaining popularity in the commercial, infrastructure, and industrial landscape, such as in the automobile, cement, paper sectors, offices, aircraft hangers, warehouses and logistics, and data centres. Use of pre-engineered constructed units enables companies to accelerate the construction process in a cost-effective manner without compromising on quality. Pre-engineering construction is reshaping the realm of building construction by decreasing the overall construction duration for commercial complexes, hospitals, office buildings, high-rise buildings, and so on, without compromising on construction quality. Pre-engineered structures are also used extensively in the institutional and recreational field to construct schools, exhibition halls, hospitals, theatres, auditoriums, gymnasiums, and indoor sports facilities.
As per the CRISIL Report, Indian PEB industry expanded at a CAGR of ~8.0% over fiscals 2019-2023, growing from ₹ 13000 crores in fiscal 2019 to ₹ 18000 crores in fiscal 2023. Last fiscal, the industry grew ~8% on-year and was valued at ₹195 billion.
The self-supported roofing market in India is estimated to moderately grow 5-6% between fiscals 2024 and 2028 to reach INR 350-360 crores, on the back of continued investments in infrastructure and industrial segments as well as increasing awareness of the benefits of self-supported roofing.
Company Information
M & B Engineering Limited is one of India’s leading Pre-Engineered Buildings (PEBs) and Self-Supported Roofing providers in terms of installed capacity (103,800 MTPA related to PEB and 1,800,000 square metres per annum for Self-Supported Roofing) as of August 31, 2024. (Source: CRISIL Report).
Their business is structured into (a) Phenix division, which provides comprehensive solutions for PEBs and complex structural steel components; and (b) Proflex division, which provides self-supported steel roofing solutions. They offer their customers comprehensive turnkey solutions, which include project design, engineering, manufacturing, and erection in accordance with customer requirements across industrial and infrastructure segments. They have delivered solutions for their customers engaged in diverse sectors, including general engineering and manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways. They have undertaken the execution of over 8,700 projects until the end of June 2024 under their Phenix and Proflex divisions.
Strengths of M & B Engineering Limited IPO
One of the leading players in the domestic PEB industry with strong presence in international markets and market leader in the domestic self-supported roofing industry.
They are one of India's leading PEBs and self-supported roofing providers in terms of installed capacity (103,800 MTPA related to PEB and 1,800,000 square metres per annum for self-supported Roofing) as of Dec 31, 2024. As of fiscal 2024, they are the largest player in terms of revenue for the manufacturing and installation of self-supported steel roofing solutions in India with a market share of 75% (Source: CRISIL Report).
They export PEBs as well as complex structural steel components to over 20 countries, including the United States of America. Since fiscal 2010, they have served customers in more than 20 countries, including customers in the US, Brazil, South Africa, Qatar, Sri Lanka, Morocco, Nigeria, Kenya, and Seychelles.
They provide a wide range of specialised products and services, making them a comprehensive solution provider for their customers.
As an integrated manufacturing partner providing ‘design-led-manufacturing’ solutions to their customers, they provide designs, engineering solutions, manufacturing and testing to ensure that their structures meet robust standards in reliability, safety and performance. At the core of their operations, they specialise in innovative design, manufacturing and installation of pre-engineered metal buildings, complex structural steel components and self-supported steel roofing. Combining the strengths of their Phenix and Proflex divisions, they have the flexibility to cater to the requirements of a diverse set of customers, ranging from small-scale projects to large-scale projects.
Strategically located manufacturing facilities for PEBs with comprehensive in-house design and engineering capabilities and 14 mobile manufacturing units for self-supported roofing systems.
They have two manufacturing facilities at Sanand, Gujarat, and Cheyyar, Tamil Nadu, for the manufacturing of PEBs and complex structural steel components. Their Sanand facility is strategically located to cater to customers in Western India, Northern India, and Central India, as well as by close connectivity to ports in the state of Gujarat, while their Cheyyar facility is well placed to cater to the requirements of potential customers in South India. Their manufacturing infrastructure is complemented by stringent quality and safety standards and processes, which are evidenced by their ISO certification. Their Sanand facility is also recognized by the Research Design and Standards Organization of the Indian Railways, FM Global, and NABL.
Risks of M & B Engineering Limited IPO
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They derive a majority portion of their revenues from the design, manufacture, and installation of pre-engineered buildings. Loss or decline in the demand of pre-engineered buildings may result in an adverse effect on their business, revenue from operations, and financial condition.
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Their net cash flow from operating activities has reduced from FY22 to FY24. If the cash flow from operations continues to remain subdued, we may have to curtail our scale of business, and we may be unable to meet our financial obligations, which may impact our overall financial stability and performance.
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Their raw material cost constitutes a significant percentage of their total expenses. Any increase in the prices, availability, and quality of raw materials could adversely affect their reputation, business, results from operations, financial conditions, and cash flows. They rely on limited suppliers for their primary raw material, steel, loss of these suppliers may have an adverse effect on their business, results of operations, and financial conditions.
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Their manufacturing facilities are currently concentrated in the states of Gujarat and Tamil Nadu in India. Any significant social, political, economic, or seasonal disruption, natural calamities, or civil disruptions in Gujarat and Tamil Nadu could have an adverse effect on their business, results of operations, financial condition, and cash flows.
M & B Engineering Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Parameter | M & B Engineering Limited | Pennar Industries Limited | Bansal Roofing Products Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 795.060 | 3130.570 | 105.584 |
P/E | - | 23.27 | 34.73 |
EPS (Basic) (₹) | 9.17 | 7.29 | 2.69 |
Return on Net Worth (%) | 19.68% | 11.22% | 12.84% |
NAV per share (₹) | 46.61 | 64.95 | 20.94 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one working day prior to the bid/offer opening date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Equirus Capital Private Limited DAM Capital Advisors Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
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From manufacturing and installation of self-supported steel roofing solutions in India.
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Through two business divisions: (a) Phenix which provides comprehensive solutions for PEBs and complex structural steel components, and (b) Proflex division, which provides self-supported steel roofing solutions.
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Offering customers comprehensive turn-key solutions, which include project design, engineering, manufacturing, and erection in accordance with customer requirements across industrial and infrastructure segments.
Company Growth Trajectory
As of August 31, 2024, they had an order book of ₹833.05 crores, which constituted 104.78% of their consolidated revenue from operations for fiscal 2024.
As of August 31, 2024, their installed capacity for the manufacture of self-supported roofings was 18,00,000 square metres per annum.
Their restated profit after tax for the period increased by 38.74% to ₹45.634 crores for fiscal 2024 from ₹32.892 crores for fiscal 2023.
In fiscal 2024, fiscal 2023 and fiscal 2022 their revenue from operations for sales outside India was ₹19.199 crores, ₹60.257 crores and ₹76.120 crores, which represented 2.41%, 6.84% and 11.06% of their consolidated revenue from operations, respectively.
Company Market Position
As of fiscal 2024, they are the largest player in terms of revenue for the manufacturing and installation of self-supported steel roofing solutions in India with a market share of 75% (Source: CRISIL Report). As per the CRISIL Report, amongst the considered peers, They registered one of the highest OPBDIT and PAT CAGRs between fiscals 2022 and 2024 of 38.0% and 67.3%, respectively.
Additionally, among the considered listed players, the company is the best performer in terms of return on equity in fiscal 2024 (Source: CRISIL Report). As per the CRISIL Report, they had the third highest Net Fixed Assets Turnover ratio of 5.5x in fiscal 2024 amongst its considered players.
M & B Engineering Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 688.225 | 880.47 | 795.06 |
Restated Profit Before Tax (₹ crores) | 22.986 | 45.484 | 60.884 |
Restated Profit for the year (₹ crores) | 16.313 | 32.892 | 45.634 |
EBITDA (₹ crores) | 41.834 | 66.43 | 79.622 |
EPS (₹) | 4.01 | 6.82 | 9.17 |
M & B Engineering Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Restated Profit Before Tax (₹ crores) | 22.986 | 45.484 | 60.884 |
Net Cash from Operating Activities (₹ crores) | 36.668 | 28.97 | 5.659 |
Net Cash from Investing Activities (₹ crores) | -2.489 | -11.944 | -62.281 |
Net Cash from Financing Activities (₹ crores) | -33.32 | 29.738 | 31.864 |
Cash and Cash Equivalents (₹ crores) | 51.435 | 98.199 | 73.441 |
How To Check Allotment Status of M & B Engineering Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the issue name from the drop-down. The issue name is the company’s name, which is M & B Engineering Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select M & B Engineering Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
M&B Engineering Ltd IPO FAQs
What is the M & B Engineering Limited IPO?
The M & B Engineering Limited IPO has an issue size aggregating up to ₹653 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for M & B Engineering Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about M & B Engineering Limited business?
You may read more about M & B Engineering Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | M & B Engineering Limited - DRHP)
