Mangal Electrical Industries raises Rs 120 crore via anchor book of Rs 400-crore IPO

Mangal Electrical Industries IPO

Mangal Electrical Industries, the Rajasthan-based company that specialises in processing of transformer components, has raised Rs 120 crore from 10 anchor investors ahead of its IPO opening.

The Rs 400-crore maiden public issue is set open on August 20 and close on August 22, with price band of Rs 533-561 per share. The offer comprises entirely fresh issue component.

" ... has finalised allocation of 21,39,020 equity shares to anchor investors at Rs 561 per equity share," Mangal Electrical Industries said in its filing to exchanges.

Notable investor Sunil Singhania's Abakkus Diversified Alpha Fund was the largest institutional investor that participated the anchor book, acquiring 6.77 lakh shares worth Rs 38 crore of Mangal Electrical.

Lighthouse Canton-owned LC Pharos Multi Strategy Fund, Societe Generale, Finavenue Capital Trust, Swyom India Alpha Fund, Sundaram Alternative Investment Trust, Imap India Capital Investment Trust, and Aarth AIF Growth Fund were other anchor investors in the company.

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The company intends to utilise Rs 101.3 crore of the IPO proceeds for debt reduction. Further, Rs 87.85 crore will be used for civil works for expanding the facility in Unit IV at Reengus Sikar, Rajasthan to optimize space usage and increase storage capacity, and Rs 122 crore for working capital requirements.

With five production facilities in Rajasthan, Mangal Electrical Industries specialises in processing transformer components including transformer laminations, CRGO slit coils, amorphous cores, coil and core assemblies, wound and toroidal cores, and oil-immersed circuit breakers. It also manufactures transformers and customised products for the power infrastructure industry, and offers EPC services for setting up electrical substations.

Systematix Corporate Services is the sole book running lead manager handling the Mangal Electrical Industries IPO.