The Rs 400-crore IPO of Mangal Electrical Industries opened for public subscription on August 20. The maiden public issue of the transformer components-maker was subscribed 54 percent on Day 1.
The mainboard IPO received bids for more than 28.43 lakh shares, as against the offer size of 52.53 lakh shares, according to data on NSE. Retail investors subscribed 70 percent of their reserved portion, while Non Institutional Investors (NII) booked 72 percent of the portion kept for them. Qualified Institutional Buyers (QIB) subscribed 12 percent of their reserved portion.
Key things to know about Mangal Electrical IPO:
Mangal Electrical launched its IPO to raise Rs 400 crore through an entirely fresh issue of shares at a price band of Rs 533-561 per share. Investors can bid for a minimum of 26 shares, requiring an investment of Rs 14,586, and in multiples thereafter.
The allotments will likely be finalised by August 25, and the shares are likely to debut on stock markets on August 28.
Mangal Electrical IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with a grey market premium of nearly 6 percent over the IPO price at Rs 586 apiece, according to data on Investorgain. The GMP has slightly increased from the 4.88 percent quoted yesterday.
According to IPO Watch, the unlisted shares of the company were trading with nearly 5 percent GMP over the IPO price.
"Revenues have climbed from Rs 449 crore in FY24 to Rs 549 crore in FY25, while profit after tax surged from Rs 21 crore to Rs 47 crore, more than doubling year-on-year. EBITDA margins expanded to 14.9%, reflecting efficiency gains and scale benefits. On the ratios front, the company reported an EPS of Rs 17.1 in FY25, translating into a P/E of 32–33x at the upper price band. Return on Net Worth (RoNW) stood at a healthy 22.5% for FY25, while debt-to-equity is expected to decline significantly post-IPO as part of the proceeds are earmarked for repayment. Net worth improved to Rs 210 crore in FY25 from Rs 163 crore in FY24, strengthening the balance sheet. The EV/EBITDA multiple works out to ~19x, which is slightly elevated versus mid-tier peers but justified given the strong growth trajectory," said Harshal Dasani, Business Head at INVasset PMS.
"Strategically, Mangal is positioned to benefit from India’s rising electricity demand, transmission upgrades, and renewable energy push—sectors where component suppliers like it see strong visibility. With debt reduction, capacity expansion, and a product mix aligned to infrastructure growth, the company’s long-term prospects remain promising. That said, valuations are not inexpensive, and immediate listing gains may be limited. For investors with a two-to-three-year horizon, this IPO provides a meaningful opportunity to play the power infrastructure theme with a company demonstrating improving profitability and strong sectoral tailwinds," he added, while advising investors to subscribe to the issue for the long term.
Mangal Electrical Industries is a processor of transformer components, transformer lamination, amorphous cores, coil assemblies and core assemblies, wound core, toroidal core, and oil-immersed circuit breakers.
The company's customers include government discoms and private companies such as Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd and Western Electrotrans. It has exported its transformer components to the Netherlands, United Arab Emirates, Oman, USA, Italy and Nepal.
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.
A day before the IPO opened for public bidding, the Rajasthan-based company raised Rs 120 crore from 10 anchor investors. 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.
Systematix Corporate Services is the sole book running lead manager handling the Mangal Electrical Industries IPO.
Follow all IPO news here.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!