Mangal Electrical shares settled lower on the debut day, post a discount listing on the stock exchanges. The shares concluded the trade at Rs 530 per share on the NSE, down 4.68 percent from the open price.
The shares had made a subdued debut on the stock market on August 28, listing at nearly a 1 percent discount to its issue price. The weak listing came despite the Rs 400-crore IPO witnessing robust investor demand, recording a subscription of 9.46 times during its offer period from August 20 to 22 in the primary market.
Shares of Mangal Electrical Industries listed at Rs 556 per share on the NSE, a discount of 0.89 percent. The Mumbai-based supermarket player had set a price band of Rs 533 - 561 per share for its issue.
On the BSE, the shares were listed at Rs 558 apiece, a discount of 0.53 percent from the issue price.
Mangal Electrical share listing on Thursday was almost at par with the expectations in the grey market, which had expected a discount listing in the secondary market. The company had earlier collected Rs 120-crore from anchor investors.
Mangal Electrical share listing: Should you buy, sell or hold?
Harshal Dasani, Business Head, INVasset PMS, noted while the strengthening capex cycle in the power and transmission sector could benefit the company, investors should weigh execution risks and moderate valuations.
Mangal Electrical share listing: Experts recommend a post-listing strategy
Proceeds from the fresh issue will be used to pay debt, expand the company's facility situated in Rajasthan, and support working capital requirements for general corporate purposes.
Mangal Electrical Industries is a processor of transformer components, transformer lamination, amorphous cores, coil assemblies, 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, the United Arab Emirates, Oman, the US, Italy and Nepal.
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