M&B Engineering Limited filed draft papers with capital markets regulator SEBI(Securities and Exchange Board of India)to mobilize RS 653 crore through an initial public offering (IPO). According to DRHP, the proposed IPO is the mixture of fresh issue equity shares worth RS 325 crore and an offer for sale (OFS) of RS328 by promoters. Moreover, presently promoters hold a 100 percent stake in the company. Furthermore, it said that the company’s IPO amount was detected if the company had managed capital before the IPO’s launching.
M&B Engineering is one of the top companies in the country for Pre-Engineered Buildings (PEB) and Self-Supported Roofing. They have a capacity of 103,800 tons per year for PEB and can produce 1.8 million square meters of Self-Supported Roofing each year.
Additionally, the total amount would have already been calculated as 63.9 crores would used to purchase necessary appliances, and machinery facilities for the company. Further, the company’s debt would have been paid by 60 crores and 110 crores for the company’s working capital prerequisite and the rest funds pave the general corporate purposes.
In this company, there are cautious promoters such as Aditya Patel, Chirag Hasmukhbhai Patel, Girishbhai Patel, Birva Chirag Patel, Vipinbhai Patel, Leenaben Vipinbhai Patel,umaben Girishbhai patel. Moreover, they sell their sales in OFS(Offer for sale).
Around 8700 projects till June 2024 in diverse sectors such as general engineering and manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways.
In fiscal 2024 net profit grew sharply by 38.7 percent to Rs 45.6 crore in contrast to the previous year despite negative reviews, driven by strong operating performance with lower input cost and other expenses.
M&B Engineering IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
M&B Engineering Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹69.89 | ₹67.59 | ₹1.63 |
| 2023 | ₹88.90 | ₹84.35 | ₹3.29 |
| 2024 | ₹80.83 | ₹74.74 | ₹4.56 |
M&B Engineering IPO Valuation – FY2024
M&B Engineering IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹9.17 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 19.68% |
| Net Asset Value (NAV): | ₹46.61 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Pennar Industries Limited | 7.29 | 23.27 | 11.22% | 64.95 | 3130.57 Cr. |
| Bansal Roofing Products Limited | 2.69 | 34.73 | 12.84% | 20.94 | 105.58 Cr. |
| HIL Limited | 46.15 | 63.12 | 2.78% | 1,661.39 | 3374.97 Cr. |
| Everest Industries Limited | 11.42 | 101.11 | 3.01% | 378.37 | 1575.45 Cr. |
| Interarch Building Products Limited | 58.68 | 21.04 | 19.40% | 308.43 | 1293.30 Cr. |
Objects of the Issue
- Funding the capital expenditure requirements for the purchase of equipment andmachinery at our Manufacturing Facilities;
- Re-payment or pre-payment, in full or in part, of certain borrowings availed by our Company;
- Funding the working capital requirements of our Company; and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Equirus Capital Private Limited
- DAM Capital Advisors Limited
