M&B Engineering IPO: DRHP Filed For Rs 650-Crore Public Issue

M&B Engineering Ltd. on Monday filed draft papers with the Securities and Exchange Board of India to raise Rs 650 crore through an initial public offering.

The proposed IPO is a mix of fresh issue of equity shares worth Rs 275 crore and an offer-for-sale of Rs 375 crore by promoters, according to the draft red herring prospectus.

Promoters of the company including Girishbhai Manibhai Patel, Chirag Hasmukhbhai Patel, Vipinbhai Kantilal Patel, and Birva Churag Patel will be offloading shares through the OFS.

Proceeds from the fresh issue will be utilised for funding the capital expenditure requirements for the purchase of equipment and machinery, building works, solar rooftop grid and transport vehicles at its manufacturing facilities. Additionally, the company will use the proceeds for investment in IT software upgradation, and re-payment or pre-payment of term loans.

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

M&B Engineering offers comprehensive turn-key solutions which includes project design, engineering, manufacturing and erection in accordance with customer requirements across industrial and infrastructure segments.

The company has delivered solutions for customers engaged in diverse sectors including general engineering and manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways.

The company, in its DRHP, noted that it has undertaken execution of over 9,400 projects until the end of December 2024 under its phenix and proflex divisions.

"As of fiscal 2024, we 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%," M&B Engineering further added.