M&B Engineering Files Draft Papers To Raise Up To Rs 653 Crore Via IPO

M&B Engineering Ltd. on Wednesday filed the draft red herring prospectus to raise up to Rs 653 crore through an initial public offering.

The IPO will comprise a fresh issue of up to Rs 325 crore, and an offer-for-sale component worth Rs 328 crore, as per the DRHP. The shares would be offered at a face value of Rs 10 apiece.

Through the OFS, shareholders who are part of the promoter and promoter group, would be offloading their stake. The list includes Girishbhai Manibhai Patel, who will be selling shares worth Rs 132.6 crore.

Other selling shareholders include Chirag Hasmukhbhai Patel, who will offload stake worth Rs 110 crore, followed by Birva Chirag Patel (Rs 37.5 crore), Umaben Girishbhai Patel (Rs 15 crore), Aditya Vipinbhai Patel (Rs 13 crore), Vipinbhai Kantilal Patel (Rs 12.3 crore), and Leenaben Vipinbhai Patel (Rs 7.5 crore).

M&B Engineering, in the DRHP, noted that 10% of the net offer would be reserved for retail investors. The quota of qualified institutional buyers will not exceed 75% of the overall offer, whereas the remaining 15% portion will be earmarked for non-institutional investors.

The amount to be raised through the fresh issue of shares will be used for "funding the capital expenditure requirements for the purchase of equipment and machinery at our manufacturing facilities," M&B Engineering said.

The proceeds will also be utilised for "repayment or prepayment, in full or in part, of certain borrowings"; funding the working capital requirements; and for general corporate purposes, the DRHP added.

Notably, M&B Engineering logged a net profit of Rs 45.6 crore and a revenue from operations of Rs 795 crore in fiscal 2024. In the preceding financial year, it recorded a net profit of Rs 32.8 crore and revenue of Rs 880.4 crore.

The draft papers have been filed at a time when India's IPO market has been buzzing, with more than 235 companies raising in excess of Rs 71,000 crore in 2024 so far.