M&B Engineering Files for ₹653 Crore IPO to Fund Expansion and Debt Repayment

26 Sep 2024 , 11:41 AM

M&B Engineering Ltd filed draft papers with SEBI on September 25, seeking to raise ₹653 Crore through an initial public offering (IPO). The IPO will include a fresh issue of equity shares worth ₹325 Crore and an offer for sale (OFS) of ₹328 Crore by promoters, as per the draft red herring prospectus (DRHP). Currently, the promoters hold a 100% stake in M&B Engineering.

The company plans to use ₹63.9 Crore from the fresh issue for purchasing equipment and machinery for its manufacturing facilities. ₹60 Crore will be allocated for debt repayment, while ₹110 Crore is set aside for working capital needs.

The remaining proceeds will be used for general corporate purposes. M&B Engineering’s borrowings stood at ₹204.84 Crore as of March 2024.

The Gujarat-based company is a leading provider of Pre-Engineered Buildings (PEB) and Self-Supported Roofing with a capacity of 103,800 MTPA for PEB and 1.8 million square meters per year for roofing solutions. Equirus Capital Private Ltd and DAM Capital Advisors Ltd are serving as book-running lead managers for the IPO.