M & B Engineering Limited files DRHP with SEBI
M&B Engineering Limited has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).
The Company plans to raise funds through fresh issue of equity shares aggregating upto Rs. 325 crores and an Offer For Sale of up to Rs. 328 crore. The total offer size is up to equity shares of face value of Rs. 10 each aggregating up to Rs. 653 crore.
The company stands as one of India’s foremost leaders in Pre-Engineered Buildings (PEBs) and Self-Supported Roofing solutions, with an impressive installed capacity of 103,800 MTPA for PEBs and 1.8 million square meters annually for Self-Supported Roofing, as of August 31, 2024 (Source: CRISIL Report).
Over the years, the company has undertaken execution of over 8,700 projects for more than 1,700 customer groups from across diverse industries including from general engineering and manufacturing, food and beverages, warehousing and logistics, power, textiles and railways. Some of our notable customers include Adani Green Energy Limited, Adani Ports and Special Economic Zone Limited, Adani Logistics Limited, AIA Engineering Limited, Alembic Pharmaceuticals Limited, Tata Advanced Systems Limited, Balaji Wafers Private Limited, Elecon Engineering Co Limited, Gujarat Tea Processors and Packers Limited, Intas Pharmaceuticals Limited, Lubi Industries LLP, PSP Projects Limited, Everest Food Products Private Limited, Arvind Limited, Inductotherm (India) Private Limited, Haldiram Foods International Private Limited, SMC Power Generation Limited, Oriental Rubber Industries Limited, Shree Ram Industries, Satyam Plastfab Private Limited and Laxmi Hydraulics Private Limited.
In Fiscal 2024, the company solidified its position as the largest player in revenue for self-supported steel roofing solutions in India, commanding a dominant 75% market share (Source: CRISIL Report). Furthermore, the company recorded remarkable growth, with one of the highest OPBDIT and PAT CAGRs of 38.0% and 67.3% between Fiscals 2022 and 2024, reflecting its operational excellence.
The company operates through two key divisions: the Phenix division, delivering comprehensive solutions for Pre-Engineered Buildings and complex structural steel components, and the Proflex division, specializing in advanced self-supported steel roofing solutions. Offering turnkey services from project design and engineering to manufacturing and erection, the company caters to a wide array of industries, including general engineering, food and beverages, warehousing, logistics, and more.
The company proposes to utilize the net proceeds towards – (i) Funding the capital expenditure requirements for the purchase of equipment and machinery at our Manufacturing Facilities (Rs. 63 crore); (ii) Re-payment or pre-payment, in full or in part, of certain borrowings availed by our Company (Rs. 60 crore); (iii) Funding the working capital requirements of our Company (Rs. 110 crore) and the rest for general corporate purposes.
Equirus Capital Private Limited and DAM Capital Advisors Limited are the Book Running Lead Managers to the issue.
Please find below the link to download the DRHP: https://www.damcapital.in/files/pdf/638628623927173169_M__B_Engineering_Limited_-_DRHP.pdf