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Chandigarh: M & B Engineering Limited (MBEL), a Gujarat-based engineering and infrastructure company, has announced the launch of its Initial Public Offering (IPO), with a total offer size of up to ₹650 crore, set to open for public subscription on Wednesday, July 30, 2025, and close on Friday, August 01, 2025. The IPO will comprise a fresh issue of ₹275 crore and an offer for sale (OFS) of ₹375 crore by the company’s promoters and promoter group.
The price band has been set at ₹366 to ₹385 per equity share of face value ₹10 each. At the upper end, this reflects a price-to-face-value multiple of 38.5x. Bids can be made for a minimum of 38 equity shares, and in multiples thereafter. The Anchor Investor bidding will open on Tuesday, July 29, 2025.
🔹 About the Company: M & B Engineering Limited (MBEL)
MBEL is a leading player in engineering and industrial infrastructure with diversified operations across machinery, civil works, and renewable energy integration. The company operates manufacturing units in Gujarat and is involved in the design, production, and installation of specialized equipment and systems for industrial clients.
Over the years, MBEL has established a reputation for its expertise in customized fabrication, EPC contracts, and engineering services catering to clients in sectors such as steel, cement, renewable energy, and heavy engineering.
🔹 IPO Structure and Objectives
The total offer size of ₹650 crore consists of:
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Fresh Issue: ₹275 crore
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Offer for Sale (OFS): ₹375 crore by existing promoters
Break-up of the Offer for Sale:
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Girishbhai Manibhai Patel: ₹153.35 crore
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Chirag Hasmukhbhai Patel: ₹130.25 crore
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Vipinbhai Kantilal Patel: ₹18.75 crore
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Birva Chirag Patel: ₹38.50 crore
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Aditya Vipinbhai Patel: ₹18.75 crore
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Umaben Girishbhai Patel (Promoter Group): ₹15.40 crore
The net proceeds from the fresh issue will be used for:
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Capital Expenditure (Capex): ₹130.58 crore for purchase of machinery, building works, solar rooftop grid installation, and transport vehicles at manufacturing sites.
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IT Software Upgradation: ₹5.20 crore investment in modernizing digital infrastructure.
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Debt Repayment/Prepayment: ₹58.75 crore to reduce loan burden and improve leverage.
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General Corporate Purposes: Remaining amount for working capital, expansion plans, and strategic initiatives.
This capital allocation underscores MBEL’s intent to enhance operational capacity, strengthen digital capabilities, and deleverage the balance sheet, thereby improving future margins and creditworthiness.
🔹 IPO Reservation Structure
The IPO is being launched through the Book Building Process in accordance with SEBI ICDR Regulations:
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Qualified Institutional Buyers (QIBs): Not less than 75% of the Net Offer. Up to 60% of QIB Portion may be allocated to Anchor Investors, of which one-third is reserved for domestic Mutual Funds.
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Non-Institutional Investors (NIIs): Not more than 15% of the Net Offer.
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1/3 reserved for bids between ₹2 lakh – ₹10 lakh
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2/3 reserved for bids above ₹10 lakh
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Retail Individual Investors (RIIs): Not more than 10% of the Net Offer.
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Employee Reservation Portion: Equity Shares also available to eligible employees on a proportionate basis.
Investors (except Anchors) must apply using the ASBA mechanism, with UPI for retail bidders. Anchor Investors will not use ASBA.
🔹 Stock Exchange Listing & Lead Managers
MBEL’s equity shares are proposed to be listed on both BSE and NSE, with NSE as the designated stock exchange. The company filed its Red Herring Prospectus (RHP) on July 24, 2025, with the Registrar of Companies (RoC), Gujarat.
Book Running Lead Managers (BRLMs):
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Equirus Capital Private Limited
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DAM Capital Advisors Limited
🔹 Valuation & Market Timing
At a price band of ₹366–₹385 per share, the IPO values the company at a competitive level considering the industrial sector revival, ongoing infrastructure push by the government, and MBEL’s strong order book visibility.
The IPO arrives amid positive sentiment for engineering and capital goods companies, buoyed by government CAPEX, Make-in-India, and PLI schemes. Additionally, rising global attention toward de-risking China exposure in supply chains has made Indian manufacturing a key focus area for global investors.
🔹 Conclusion: Promising Entry into Capital Markets
MBEL’s IPO presents an attractive opportunity for investors seeking exposure to India’s expanding industrial and engineering landscape. With strong promoter pedigree, focused use of proceeds, robust capex plans, and a diversified product portfolio, the company is well-positioned to leverage upcoming growth cycles in core infrastructure and manufacturing sectors.
Given the strong response expected from institutional investors and robust fundamentals, this IPO may witness significant interest across investor categories.
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