The Rs 650-crore IPO of M&B Engineering saw strong investor interest on its second day of public bidding (July 31). The maiden public issue of the pre-engineered buildings and self-supported roofing solutions provider was subscribed nearly 3 times its offer size.
The IPO received bids for nearly 2.84 crore shares, as against the offer size of 97.98 lakh shares, according to data on NSE. Retail investors booked their reserved portion more than 9.46 times, while non institutional investors (NII) subscribed the portion kept for them 4.26 times. Qualified Institutional Buyers (QIBs) booked 2 percent of their reserved portion.
M&B Engineering IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 14 percent over IPO price at Rs 440 apiece, according to Investorgain. The GMP has increased from the 8 percent earlier quoted by the site. However, it fell slightly from the 16 percent quoted yesterday.
According to IPO Watch, the unlisted shares of the company were trading with a 16.88 percent GMP over the IPO price at Rs 430 apiece.
Key things to know about M&B Engineering IPO:
M&B Engineering has launched its IPO to raise Rs 650 crore from the capital markets through a fresh issue of shares worth Rs 275 crore, and an offer-for sale of shares worth Rs 375 crore by its promoters, the Patel family. The company has set a price band of Rs 366-385 per share for the IPO.
Investors can apply for a minimum of 38 shares, requiring an investment of Rs 14,630, an in multiples thereafter. Allotments will likely be finalized by August 2, and the shares are scheduled to make a debut on stock markets on August 6.
Bajaj Broking assigns 'Subscribe for long term' rating:
Bajaj Broking advised investors to subscribe to the issue for the long term. “MBEL is one of the leading PEB players for variety of needs to various segments. It has completed around 9500 projects till March 31, 2025 under its Phenix and Proflex divisions For the last three fiscals, the company has posted an average EPS of Rs. 11.90 and an average RoNW of 22.28%. If we attribute FY25 annualized earnings then the asking price is at a P/E of 28.56. Based on FY24 earnings, the P/E stands at 48.19,” the brokerage said.
Also read: The business design of M & B Engineering looks robust
A day before the IPO opened for public bidding, M&B Engineering raised Rs 291.6 crore from 24 institutional investors via anchor book on July 29. Ahmedabad-based M&B Engineering on Tuesday has finalised allocation of 75.74 lakh shares to anchor investors at Rs 385 per share.
Key institutions names like Ashoka India, Abu Dhabi Investment Authority, Integrated Core Strategies, Societe Generale, and Pinebridge Global Funds invested in the company via anchor book.
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