M&B Engineering files draft papers for ₹653 crore IPO

M&B Engineering Ltd on Wednesday filed draft papers with capital markets regulator SEBI to mobilise ₹653 crore through an initial public offering (IPO).

The proposed IPO is a mix of fresh issue of equity shares worth ₹325 crore and an offer for sale (OFS) of ₹328 crore by promoters, according to the draft red herring prospectus (DRHP).

At present, promoters hold 100% stake in the company.

Proceeds from the fresh issue to the extent of ₹63.9 crore will be used for purchasing equipment and machinery for the company's manufacturing facilities, ₹60 crore for payment of debt, ₹110 crore to meet the company's working capital requirements and the remaining funds will be allocated towards general corporate purposes.

The Gujarat-based company's total borrowings stood at ₹204.84 crore as of March 2024, the draft papers showed.

M&B Engineering is one of the country's leading Pre-Engineered Buildings (PEB) and Self-Supported Roofing providers in terms of installed capacity (103,800 MTPA related to PEB and 1,800,000 square metres per annum for Self-Supported Roofing).

Equirus Capital Private Ltd and DAM Capital Advisors Ltd are the book-running lead managers to the issue.