Mangal Electrical Industries Limited has announced the launch of its ₹400 crore Initial Public Offering (IPO), which will open for subscription on 20th August 2025 and close on 22nd August 2025. The issue consists entirely of a fresh issue of 71.30 lakh equity shares, with a price band set between ₹533 and ₹561 per share.

The company, which has been in the power infrastructure sector for several decades, is now looking to expand its presence further with the help of IPO proceeds. The listing will take place on both BSE and NSE, with a tentative listing date of 28th August 2025.

IPO Structure and Key Details

• Total Issue Size: ₹400 crore (Fresh Issue only)

• Price Band: ₹533 to ₹561 per share

• Market Capitalisation at upper price band: ₹1,550.05 crore

• Lot Size: 26 shares

• Minimum Retail Investment: ₹14,586 (26 shares)

• Minimum HNI Investment: ₹2,04,204 (364 shares)

• Lead Manager: Systematix Corporate Services Limited

• Registrar: Bigshare Services Private Limited

Retail investors can apply with a minimum lot of 26 shares, while High-Net-Worth Individuals (HNIs) must subscribe for a minimum of 14 lots.

Business Overview

Mangal Electrical Industries Limited is primarily engaged in processing transformer components, transformer laminations, CRGO slit coils, amorphous cores, coil assemblies, core assemblies, wound core, toroidal core, and oil immersed circuit breakers. The company also trades in CRGO and CRNO coils as well as amorphous ribbons.

Further, the company manufactures transformers and customised products in the power infrastructure industry, making it a diversified player in a niche sector.

Under the leadership of Chairman and Managing Director Rahul Mangal, who has over 35 years of experience in the power distribution and technology sectors, the company has grown steadily. His vision has been supported by Aniketa Mangal, a Board member since 2022, with experience across finance, operations, marketing and sales.

Financial Performance

The company has demonstrated a steady growth in revenues and profitability:

• Revenue from Operations:

  • FY23: ₹35,781.20 lakh

  • FY24: ₹45,213.23 lakh

  • FY25: ₹55,139.04 lakh

• EBITDA:

  • FY23: ₹4,792.79 lakh

  • FY24: ₹4,527.29 lakh

  • FY25: ₹8,381.00 lakh

• Profit After Tax (PAT):

  • FY23: ₹2,473.81 lakh

  • FY24: ₹2,094.86 lakh

  • FY25: ₹4,730.70 lakh

This trend highlights a strong revenue trajectory and robust profit growth in the last fiscal.

Key Ratios (FY24):

• Pre-issue EPS: ₹23.08

• Post-issue EPS: ₹17.12

• Pre-issue P/E: 24.30x

• Post-issue P/E: 32.77x

• Industry P/E: 27x

• ROCE: 25.38%

• ROE: 29%

• RoNW: 34.14%

These ratios suggest that the IPO is fully priced, leaving limited headroom for listing gains.

IPO Objectives

The net proceeds from the IPO will be utilised for the following:

1. Repayment/Prepayment of borrowings – ₹10,126.65 lakh

2. Capital expenditure (expansion at Unit IV, Reengus, Rajasthan) – ₹8,785.63 lakh

3. Funding working capital requirements – ₹12,200 lakh

4. General corporate purposes

This diversification of funds shows a focus on reducing debt, expansion, and operational strengthening.

Grey Market Premium (GMP)

As of 14th August 2025, the Grey Market Premium (GMP) stands at ₹0, indicating no premium being offered by the unlisted market.

• IPO Price: ₹561

• Expected Listing Price: ₹561

• GMP: ₹0 (0.00%)

This implies that the IPO may not offer strong listing gains.

Subscription & Allotment Details

• Subscription Period: August 20 to August 22, 2025

• Allotment Date: August 25, 2025

• Tentative Listing Date: August 28, 2025

How to check allotment status?

1. Visit the IPO registrar’s website (Bigshare Services).

2. Select “Mangal Electrical Industries Limited IPO” from dropdown.

3. Enter your Application Number, PAN, or DP Client ID.

4. Submit details to check status.

Investment Outlook

While Mangal Electrical Industries has shown consistent revenue and profit growth, and operates in a niche segment of power infrastructure, the valuation of the IPO seems fully priced. With a GMP of ₹0, investors looking for listing gains may be disappointed.

However, long-term investors may find value in the company’s strong fundamentals, expansion plans, and experienced management.

Recommendation: Avoid for short-term listing gains, consider for long-term investment based on business growth outlook.

The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.

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