Mangal Electrical Industries Limited, a leading name in transformer components and customised power infrastructure products, is set to launch its Initial Public Offering (IPO) on August 20, 2025. The company has announced a Book Built Issue of ₹400 crore, consisting entirely of a fresh issue of 71.3 lakh shares. The IPO will close on August 22, 2025, and the allotment date is scheduled for August 25, 2025, with the tentative listing date on August 28, 2025, on both BSE and NSE.

IPO Details

The price band of the IPO has been fixed between ₹533 to ₹561 per equity share. At the upper band of ₹561, the market capitalisation of Mangal Electrical Industries is estimated to be around ₹1,550.05 crore.

The lot size has been set at 26 shares, meaning a minimum investment of ₹14,586 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment will be 14 lots (364 shares), which amounts to ₹2,04,204.

Systematix Corporate Services Limited is acting as the book running lead manager, while Bigshare Services Private Limited is the registrar for the issue.

Anchor Investors

Ahead of the IPO opening, Mangal Electrical Industries raised ₹119.99 crore from anchor investors at a price of ₹561 per share. A total of 21,39,020 shares were allotted to anchor investors, reflecting market confidence, though analysts point out that valuations remain on the higher side.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Mangal Electrical Industries IPO is currently ₹0, indicating no listing gains are expected at the moment. Analysts caution investors not to rely on GMP as it operates in an unorganised and speculative market, where pricing is not officially regulated.

Subscription Status

As of 12:00 PM on August 22, 2025, the final day of subscription, the IPO was subscribed 1.09 times, reflecting modest demand.

Financial Performance

Mangal Electrical Industries has demonstrated consistent financial growth over the past three years.

• Revenue from operations was ₹55,139.04 lakh in FY25, ₹45,213.23 lakh in FY24, and ₹35,781.20 lakh in FY23.

• EBITDA stood at ₹8,381 lakh in FY25, up from ₹4,527.29 lakh in FY24 and ₹4,792.79 lakh in FY23.

• Profit After Tax (PAT) was ₹4,730.70 lakh in FY25, compared to ₹2,094.86 lakh in FY24 and ₹2,473.81 lakh in FY23.

This demonstrates steady improvement in top-line and bottom-line growth, driven by demand in the power infrastructure industry.

Valuation Metrics

The company has reported a pre-issue EPS of ₹23.08 and post-issue EPS of ₹17.12 for FY24. The pre-issue P/E ratio works out to 24.30x, while the post-issue P/E ratio is 32.77x, compared with the industry P/E ratio of 27x.

The Return on Capital Employed (ROCE) for FY24 was 25.38%, the Return on Equity (ROE) was 29.00%, and the Return on Net Worth (RoNW) was 34.14%. While these figures show strength, experts note that the IPO is fully priced, leaving little room for listing gains.

Business Overview

Mangal Electrical Industries is engaged in processing transformer components such as transformer lamination, CRGO slit coils, amorphous cores, coil assemblies, core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers. The company also trades in CRGO and CRNO coils and amorphous ribbons, apart from manufacturing transformers and customised products in the power infrastructure sector.

The company is led by Rahul Mangal, the Promoter, Chairman and Managing Director, who has more than 35 years of experience in power distribution and technology. Under his leadership, the company has expanded operations significantly. Aniketa Mangal, who has over eight years of experience across finance, operations, marketing, and sales, has been on the Board since 2022.

IPO Objectives

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

1. ₹10,126.65 lakh for repayment or prepayment of outstanding borrowings.

2. ₹8,785.63 lakh for capital expenditure, including civil works at Unit IV, Reengus, Sikar District, Rajasthan, to optimise space and increase capacity.

3. ₹12,200 lakh for working capital requirements.

4. Balance for general corporate purposes.

Analyst Recommendations

While the company has shown healthy growth in revenues and profits, experts caution that the IPO valuation is on the higher side compared to peers. With no Grey Market Premium indicating listing gains, analysts suggest that investors may prefer to avoid this IPO for short-term gains, though long-term investors with faith in the company’s business model and expansion strategy could consider subscribing.

Conclusion

The Mangal Electrical Industries IPO represents a significant step for the company as it raises fresh capital for expansion and debt repayment. However, with valuations considered fully priced and low investor enthusiasm reflected in modest subscription numbers, analysts recommend caution.

For investors, the decision will largely depend on their risk appetite and investment horizon—those seeking quick listing gains may avoid it, while those betting on the long-term growth of India’s power infrastructure sector may still find value in the offering.

The Upcoming IPOs in this week and coming weeks are Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators, Mangal Electrical Industries, .

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