M&B Engineering Share Price Falls 11% Despite Company Announcing 10,000 MTPA Capacity Expansion; Rs 30 Crore Investment Planned

On Monday, Indian equity benchmark indices traded marginally higher, with the benchmark Nifty 50 index rising 19.70 points, or 0.08 per cent, to 24,590.35. Amid the mixed market sentiment, M&B Engineering share price fell 11.19 per cent to Rs 265.10, after the company announced a brownfield expansion of its Heavy Structural Steel manufacturing capacity at its Sanand plant.

M&B Engineering 10,000 MTPA Capacity Expansion

M&B Engineering's Board of Directors approved a brownfield expansion project involving an additional 10,000 MTPA of Heavy Structural Steel capacity at its Sanand plant. The company's existing Heavy Structural Steel capacity stands at 12,000 MTPA, meaning the proposed expansion will increase the capacity to approximately 22,000 MTPA, representing an increase of around 83 per cent.

The existing Heavy Structural Steel capacity is currently operating at approximately 75–78 per cent utilisation. The company expects the additional capacity to be commissioned by Q1 FY28. The total investment required for the expansion is approximately Rs 30 crore, which will be financed through a combination of term loan and internal accruals.

Data Centre and High-Rise Construction Opportunity

According to the company, India's data-centre expansion is creating a USD 12–14 billion addressable opportunity for steel-intensive construction over the next five years, supported by approximately USD 60–70 billion of announced investments. The company also highlighted the growing adoption of steel in high-rise construction as developers look to accelerate project timelines.
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The company said these projects increasingly require a combination of Pre-Engineered Building systems and Heavy Structural Steel, offering speed of execution, high load-bearing capacity, design flexibility and scalability. M&B Engineering's dual capabilities in PEB and Heavy Structural Steel are expected to support its positioning across data centres, high-rise buildings and other complex structural applications.

IPO Fund Utilisation

Separately, M&B Engineering disclosed that it raised Rs 275 crore through a fresh issue in its IPO, with no deviation or variation in the utilisation of the proceeds for the quarter ended June 30, 2026. The company had allocated funds towards capital expenditure, information technology, repayment or prepayment of certain term loans and general corporate purposes.

During the quarter, Rs 23.75 crore was utilised towards capital expenditure for equipment, machinery, building works, Solar rooftop grid and transport vehicles at manufacturing facilities. The company also utilised Rs 58.75 crore towards repayment or prepayment of term loans.

About M&B Engineering

M&B Engineering is an engineering company focused on Pre-Engineered Buildings and Heavy Structural Steel solutions. The company operates from its manufacturing facilities and serves applications that require steel-intensive construction solutions.

The company is targeting opportunities across data centres, high-rise buildings and other complex heavy-structural applications, where its combined PEB and Heavy Structural Steel capabilities can provide end-to-end construction solutions.

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Disclaimer: The article is for informational purposes only and not investment advice.