M&B Engineering IPO | Joint MD Chirag Patel Bets On Capacity Expansion: '20% CAGR By...'

M&B Engineering IPO: The initial public offering (IPO) of M&B Engineering Ltd opened for subscription today, Wednesday, July 30. The mainboard issue has a subscription status at 34% so far. In the backdrop of the IPO and its objectives, the company's joint managing director Chirag Patel spoke to NDTV Profit to explain the growth planned eyed in the next few years.

"With the utilisation and capacity expansion of our plants, we expect to achieve 20% CAGR in the coming few years. We are sending our raw materials to over 22 countries. US and the northern American market will be our prime focus for the next few years," said joint MD Chirag Patel.

Patel highlighted that M&B Engineering Ltd is one of the largest exporters of pre engineered buildings out of India. "Currently, our combined installed capacity is 1,03,800 metric ton related to pre-engineered buildings (PEB). After expansion, the combined capacity will be 1,43,800 metric ton."

M&B Engineering IPO subscription status is 42% on day 1, so far. The retail portion was subscribed 1.69 times, and NII portion has been booked 39%, Qualified Institutional Buyers (QIBs) portion is yet to receive bids. The company has received bids for 41,60,430 shares against 97,98,309 shares on offer, at 2:20 IST, according to data on BSE.

M&B Engineering IPO includes a fresh issuance of equity shares valued at Rs 275 crore and an offer-for-sale (OFS) of Rs 375 crore from its promoters. The issue, which has a price band of Rs 366 to Rs 385, will close on Friday, August 1. At the highest end of the price band, the market capitalization of the Gujarat-based firm is projected to be Rs 2,200 crore.

The proceeds from the new issuance are planned to be used for purchasing machinery and equipment for the company's manufacturing facilities, repaying debts, addressing working capital requirements, and supporting general corporate purposes. Equirus Capital and DAM Capital Advisors are the lead managers overseeing the book-running for this issuance.

The company is recognized as one of the top providers of Pre-Engineered Buildings (PEB) and Self-Supported Roofing in the country, with an installed capacity of 103,800 MTPA for PEB and 1,800,000 square meters annually for Self-Supported Roofing.