Mangal Electrical shares will debut on the stock exchanges on August 28 after its initial public offer (IPO) was subscribed 9.46 times during August 20–22.
The IPO was priced in the band of Rs 533–561 per share and raised Rs 120 crore from anchor investors ahead of the public issue.
Market experts said investors may consider booking partial profits at the time of listing while holding the balance for long-term gains.
"In the grey market, shares are quoting at a modest premium of 3–6 percent, indicating expectations of a measured debut despite strong subscription," said Harshal Dasani, Business Head, INVasset PMS.
Dasani noted that the company reported revenue of about Rs 1,100 crore in FY24 with EBITDA margins of nearly 12 percent and ROCE above 18 percent. At the upper price band, the issue was valued at around 26–28 times FY24 earnings, in line with peers in the transformer and power ancillary sector.
He added that while the strengthening capex cycle in the power and transmission sector could benefit the company, investors should weigh execution risks and moderate valuations.
Narendra Solanki, Head – Fundamental Research, Anand Rathi Shares and Stock Brokers, said Mangal Electrical is an integrated power infrastructure company engaged in transformer manufacturing and processing of transformer components such as CRGO slit coils, laminations, amorphous cores, and oil-immersed circuit breakers.
"With five facilities in Rajasthan and certifications from NABL, PGCIL and NTPC, the company caters to government utilities, PSUs, private power producers and global markets. Operating under the brand ‘Mangal Electrical’, it is positioned as a player in high-capacity transformer solutions, including up to the 765 kV class," Solanki said.
He added that the company is expected to list around its issue price, in line with current grey market trends. At the upper band, the issue is valued at a FY25 price-to-earnings multiple of 32.8 times with a post-issue market capitalisation of about Rs 1,550 crore.
According to the company, proceeds from the fresh issue will be used to repay debt, expand the Rajasthan facility, and meet working capital and other corporate requirements.
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