M&B Engg For Rs 653-Cr IPO

New Delhi: M&B Engineering Ltd on Wednesday filed draft papers with capital markets regulator Sebi to mobilise Rs653 crore through an initial public offering (IPO). The proposed IPO is a mix of fresh issue of equity shares worth Rs325 crore and an offer for sale (OFS) of Rs328 crore by promoters, according to the draft red herring prospectus (DRHP). At present, promoters hold 100 per cent stake in the company. Proceeds from the fresh issue to the extent of Rs63.9 crore will be used for purchasing equipment and machinery for the company’s manufacturing facilities, Rs60 crore for payment of debt, Rs110 crore to meet the company’s working capital requirements and the remaining funds will be allocated towards general corporate purposes.