The Mangal Electrical Industries Limited IPO has officially opened for subscription and is one of the key IPOs in August 2025. The company operates in the power infrastructure industry, specializing in transformer components, laminations, CRGO slit coils, amorphous cores, coil assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers. Apart from manufacturing, the company is also engaged in trading CRGO and CRNO coils and amorphous ribbons, while also producing fully customised transformers to cater to the growing needs of the infrastructure sector.

This IPO has garnered attention due to the company’s ₹400 crore fresh issue, structured as a Book Built Issue. Unlike many IPOs that combine fresh issue and offer for sale (OFS), the Mangal Electrical Industries IPO consists entirely of a fresh issue of 71.30 lakh shares. The subscription window for this IPO opened on 20 August 2025 and closed on 22 August 2025.

The price band has been fixed between ₹533 and ₹561 per equity share, with the upper band giving the company a market capitalization of ₹1,550.05 crore. The lot size is 26 shares, which means retail investors must invest a minimum of ₹14,586, while high-net-worth individuals (HNIs) need to invest at least 14 lots (364 shares) amounting to ₹2,04,204.

The IPO is managed by Systematix Corporate Services Limited as the Book Running Lead Manager, while Bigshare Services Private Limited acts as the registrar for the issue.

Mangal Electrical Industries IPO GMP Today

As per market observers, the Grey Market Premium (GMP) for Mangal Electrical Industries IPO is currently ₹0, indicating that there is no trading premium over the issue price. This means the expected listing price remains at ₹561, equal to the upper end of the price band. The GMP figure is considered unofficial and is influenced by unregulated demand and supply in the grey market. Experts advise that investors should not base their investment decisions solely on GMP movements, as these do not provide reliable insights into long-term performance.

Live Subscription Status

As of 11:00 AM on 21 August 2025, the IPO has been subscribed 0.33 times on its final day. This reflects muted investor interest, though the final subscription figures at the close of the issue will provide a clearer picture of demand across Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and retail investors.

Anchor Investors Participation

Prior to opening for the general subscription, Mangal Electrical Industries successfully raised ₹119.99 crore from Anchor Investors by allocating 21,39,020 equity shares at ₹561 per share. This move has instilled some confidence in the market, as anchor investor participation often signals institutional backing. However, the overall subscription data indicates that despite anchor support, retail and other investor categories are showing caution.

IPO Allotment and Listing Details

The allotment date for the IPO has been fixed for 25 August 2025 (Monday). Investors can check their allotment status through the registrar’s website by entering their application number, PAN, or DP Client ID. The tentative listing date is 28 August 2025 (Thursday), when the shares will debut on both the BSE and NSE.

Financial Performance of the Company

Mangal Electrical Industries has showcased a steady rise in financial performance in recent years:

• 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

These figures clearly indicate that the company has maintained consistent revenue growth while significantly boosting profitability in FY25.

Key Valuation Metrics

The company’s financial metrics paint a mixed picture:

• Pre-issue EPS: ₹23.08

• Post-issue EPS: ₹17.12

• Pre-issue P/E ratio: 24.30x

• Post-issue P/E ratio: 32.77x

• Industry average P/E ratio: 27x

• ROCE for FY24: 25.38%

• ROE for FY24: 29.00%

• RoNW: 34.14%

These numbers suggest that while the company is fundamentally strong, the IPO appears to be fully priced, leaving limited room for immediate listing gains.

Objectives of the IPO

The company intends to utilise the net proceeds from the IPO 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 expansion at its Unit IV in Reengus, Sikar District, Rajasthan, aimed at optimizing space and increasing storage capacity.

3. ₹12,200.00 lakh for funding working capital requirements.

4. Balance proceeds for general corporate purposes.

This demonstrates the company’s focus on reducing debt, expanding infrastructure, and strengthening its financial base to support future growth.

Promoter Background and Leadership

The company is guided by Rahul Mangal, Promoter, Chairman and Managing Director, who has over 35 years of experience in power distribution and technology sectors. He was also part of the earlier partnership firm that transitioned into the current company structure. Additionally, Aniketa Mangal, with over 8 years of experience in finance, operations, marketing, and sales, has been on the Board since 2022. This leadership mix provides both legacy experience and modern business insights.

IPO Review and Recommendation

While Mangal Electrical Industries demonstrates strong fundamentals, impressive revenue growth, and robust profitability, the valuation appears stretched when compared with industry averages. The subscription figures so far are modest, and the GMP trend at ₹0 suggests limited short-term excitement.

For investors seeking listing gains, analysts recommend avoiding this IPO, as the potential upside in the short run appears limited. However, for long-term investors with an interest in the power infrastructure sector, the IPO could still be considered due to the company’s proven track record, expansion plans, and future growth potential in India’s rapidly modernizing energy sector.

In conclusion, the Mangal Electrical Industries IPO is a story of a company with strong operational performance and ambitious expansion strategies, but one where investors must carefully weigh valuation concerns, market sentiment, and long-term outlook before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods.

The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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