M & B Engineering Limited Prepares for IPO with Strong Market Position in PEB and Self-Supported Roofing

M & B Engineering Limited , a leading player in the pre-engineered buildings (PEB) and self-supported roofing industries, is gearing up for its initial public offering (IPO). Founded in 1981 and headquartered in Ahmedabad, Gujarat, the company has established itself as a comprehensive solution provider with a significant market presence.

Company Overview

M & B Engineering Limited boasts an installed capacity of 103,800 MTPA for PEB and 1,800,000 square metres per annum for self-supported roofing as of December 31, 2023. Notably, the company holds a 75% market share in self-supported steel roofing solutions in India for Fiscal 2023.

The company's operations are supported by strategically located manufacturing facilities in Sanand, Gujarat, and Cheyyar, Tamil Nadu, along with 14 mobile manufacturing units for self-supported roofing. This infrastructure allows M & B Engineering to efficiently serve customers across various regions.

Financial Performance

M & B Engineering has demonstrated strong financial performance in recent years:

Key financial metrics for Fiscal 2023 include:

• Basic and Diluted EPS: ₹9.17
• Net Asset Value per Equity Share: ₹46.61 (as of March 31, 2023)
• EBITDA Margin: 10.01%
• PAT Margin: 5.65%
• Return on Equity: 19.68%

IPO Details

While specific dates for the IPO have not been provided, the company has outlined its purposes for the public offering:

1. Funding capital expenditure requirements: ₹1,298.48 million
2. Investment in IT software upgradation: ₹52.00 million
3. Repayment of term loans: ₹600.00 million
4. General corporate purposes

The IPO will include a fresh issue of shares and an offer for sale by several promoter and promoter group selling shareholders.

Strengths and Risks

Key Strengths

• Leading market position in PEB and self-supported roofing industries
• Comprehensive product and service offerings
• Strong customer relationships across diverse industries
• In-house design and engineering capabilities
• Experienced management team

Potential Risks

• Dependency on manufacturing facilities
• Reliance on pre-engineered buildings for revenue
• High quality standards and performance requirements
• Reduced net cash flow from operating activities
• Raw material cost and supply challenges

Management and Leadership

The company is led by an experienced team, including:

• Chirag Hasmukhbhai Patel: Chairman and Joint Managing Director
• Malav Girishbhai Patel: Joint Managing Director
• Vipinbhai Kantilal Patel: Director
• Girishbhai Manibhai Patel: Whole-time Director

Industry Comparison

Compared to listed peers, M & B Engineering shows competitive financial ratios:

As M & B Engineering Limited prepares for its market debut, investors will be closely watching this established player in the PEB and self-supported roofing sectors.