The Initial Public Offering (IPO) of M & B Engineering Ltd has generated considerable interest in the financial markets. As a strategic player in the manufacturing sector, particularly in hydraulic and mechanical engineering solutions, M & B Engineering’s IPO is a notable event in the SME IPO calendar. In this article, we present a comprehensive analysis of the M & B Engineering IPO GMP (Grey Market Premium) today, the company’s fundamentals, valuation, subscription data, expected listing price, and investor sentiment.
About M & B Engineering Ltd
M & B Engineering Ltd, headquartered in Gujarat, has been a key provider of hydraulic solutions, manufacturing industrial machinery and components for sectors such as oil & gas, mining, construction, and power. The company’s longstanding industry presence, backed by its innovation-driven engineering practices, has earned it a trusted name across both public and private sector enterprises.
Their core offerings include:
- Hydraulic cylinders
- Power packs
- Mechanical jacks
- Hydraulic presses
- Customized engineering solutions
Its clientele includes notable government organizations, infrastructure developers, and industrial conglomerates.
IPO Details: Issue Highlights
| Particulars | Details |
|---|---|
| IPO Open Date | August 5, 2025 |
| IPO Close Date | August 7, 2025 |
| IPO Price Band | ₹84 to ₹88 per equity share |
| Lot Size | 1600 shares |
| Issue Size | ₹30.88 crores (approx.) |
| Listing Exchange | NSE SME |
| Face Value | ₹10 per share |
| Minimum Investment | ₹140,800 (at upper band) |
| Retail Allocation | 35% |
| Registrar | Kfin Technologies Ltd |
M & B Engineering IPO GMP Today: Grey Market Premium
As of August 5, 2025, the Grey Market Premium (GMP) for M & B Engineering Ltd is trending positively:
- Today’s GMP: ₹42 – ₹45 per share
- Estimated Listing Price: ₹130 – ₹133 (based on upper band)
- Listing Gain Expectation: 47% to 51%
The rising GMP reflects robust investor appetite and optimistic market sentiment. Given the company’s strong order book and niche positioning, investors are showing enthusiasm well ahead of the listing.
M & B Engineering Financials: Key Metrics
M & B Engineering Ltd has displayed consistent financial growth over the past three fiscal years. Below are the audited figures:
| Financial Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EBITDA Margin | ROE (%) |
|---|---|---|---|---|---|
| FY 2022 | 24.75 | 5.19 | 2.82 | 20.96% | 18.5% |
| FY 2023 | 32.60 | 7.14 | 4.01 | 21.9% | 21.7% |
| FY 2024 | 40.92 | 9.21 | 5.44 | 22.5% | 23.4% |
The financials clearly highlight profitability growth, efficient capital usage, and healthy return ratios, making it a fundamentally sound SME IPO.
Objectives of the IPO
The proceeds of the IPO will be utilized for:
- Capex Expansion: Setting up a new manufacturing unit with advanced robotic welding and automation.
- Working Capital Requirements: Ensuring seamless operations to meet rising order inflows.
- Debt Repayment: Strengthening the balance sheet by reducing interest burden.
- General Corporate Purposes
Industry Outlook: Engineering Sector in India
India’s engineering sector is projected to grow at a CAGR of 7.9% over the next five years, backed by strong infrastructure push, Make in India initiatives, and a resurgence in capital expenditure. Companies like M & B Engineering stand to benefit from this cycle with their specialized hydraulic systems and custom-built solutions.
Promoters and Management
The company is promoted by Mr. Mehul Patel and Mr. Bhavesh Soni, seasoned professionals with a combined industry experience of over 40 years. Their leadership has led the company from a small-scale unit to a full-fledged ISO-certified engineering firm with pan-India presence.
Management credibility and their hands-on involvement in operations have added confidence among institutional and retail investors alike.
M & B Engineering IPO Subscription Status (Live Update)
As of the latest update on Day 1 of the IPO, the subscription status is as follows:
| Investor Category | Subscription (x) |
|---|---|
| Retail Individual | 3.12x |
| Non-Institutional | 4.79x |
| Qualified Institutional | 1.02x |
| Total | 3.85x |
The IPO is witnessing strong demand, particularly from HNIs and retail investors, pointing to a likely oversubscription by the final day.
Strengths of M & B Engineering Ltd
- Diversified Engineering Portfolio: Solutions span across multiple high-growth sectors.
- Impressive Financial Track Record: Strong YoY growth in revenue and margins.
- Experienced Management: Decades of operational and strategic leadership.
- SME Ecosystem Advantage: Listing on the NSE SME platform opens up scalable opportunities.
- Strong Order Pipeline: Backed by repeat clients and government infrastructure spending.
Risks and Concerns
- SME Volatility: SME IPOs typically face higher volatility in post-listing trade.
- Client Concentration Risk: A few large clients contribute significantly to revenues.
- Working Capital Intensive: Delayed payments from infra clients can impact liquidity.
Should You Subscribe to M & B Engineering IPO?
Considering the fundamentals, strong subscription data, and grey market indicators, M & B Engineering Ltd IPO appears attractively priced. Investors seeking medium- to long-term growth potential from the SME engineering sector could consider subscribing. However, one must also assess personal risk appetite due to inherent volatility in SME listings.
Expected Listing Gains and Long-Term Potential
With a current GMP of ₹42 – ₹45, the stock may list around ₹130 – ₹133, delivering immediate gains of 47%–51%. Beyond listing, the company’s forward PE ratio is around 13.6x, lower than sector average, indicating room for valuation upside if growth sustains.
Given government capex plans, the growth trajectory in engineering services, and M & B Engineering’s strategic expansion roadmap, the long-term outlook remains positive.
Conclusion: Our Verdict on M & B Engineering IPO
The M & B Engineering Ltd IPO is gaining momentum both in the grey market and among retail investors. With solid financials, positive GMP, and a strong engineering pedigree, this IPO could become one of the top-performing SME issues of 2025. Prospective investors may consider applying after reviewing personal financial goals.
As always, consult with a financial advisor before making any investment decisions.
