Mangal Electrical Industries Limited, a company engaged in the manufacturing and processing of transformer components and customised products for the power infrastructure industry, has launched its much-awaited Initial Public Offering (IPO). The offering, structured as a Book Built Issue worth ₹ 400 Crores, consists entirely of a Fresh Issue of 71.30 Lakh shares, with no Offer for Sale (OFS). This IPO has gained attention due to the company’s growth trajectory, strong financial performance, and expansion plans, although market experts have raised concerns about its valuation.

The subscription window for the Mangal Electrical Industries IPO opened on August 20, 2025, and closed on August 22, 2025. On its final day, the issue was subscribed 1.09 times, indicating moderate investor interest when compared to other high-demand IPOs. Despite the modest oversubscription, the company managed to secure institutional confidence through anchor placements.

The allotment of shares is scheduled for Monday, August 25, 2025, and the tentative listing date is set for Thursday, August 28, 2025, on both the BSE and NSE. The IPO price band has been fixed between ₹ 533 and ₹ 561 per equity share, with the market capitalisation at the upper band estimated at ₹ 1,550.05 Crores.

For investors, the lot size is 26 shares, requiring a minimum retail investment of ₹ 14,586, while High Net-Worth Individuals (HNIs) are required to invest in at least 14 lots (364 shares), amounting to ₹ 2,04,204.

Systematix Corporate Services Limited is acting as the Book Running Lead Manager (BRLM), and Bigshare Services Private Limited is the Registrar to the Issue, ensuring smooth handling of the IPO process.

Grey Market Premium (GMP) Update

The Grey Market Premium (GMP) of Mangal Electrical Industries IPO is reported at ₹ 0, reflecting no listing gains in the unofficial market. The GMP is largely determined by demand and supply in unregulated channels and does not necessarily represent the true market potential. The company’s GMP trend has remained flat since August 14, 2025, with no premium recorded.

This suggests that investor sentiment in the grey market is neutral, and no significant trading activity has been reported. Experts caution against relying on GMP as a valuation metric, highlighting that it is unofficial and often misleading.

Subscription and Anchor Investor Participation

On the subscription front, the IPO saw modest demand, closing at 1.09 times subscription by the final day. While the retail participation remained average, the company secured ₹ 119.99 Crores from Anchor Investors at the upper price band of ₹ 561 per share. This anchor investment involved the allocation of 21,39,020 shares, instilling some confidence in the market despite lukewarm retail demand.

It is important to note that the shares allotted to anchors were carved out of the Qualified Institutional Buyers (QIBs) portion, highlighting the role of institutional investors in providing stability to the offering.

Financial Performance

The financial performance of Mangal Electrical Industries has shown consistent growth across revenue, profitability, and operational efficiency. The company reported the following numbers:

• Revenue from operations:

  • FY 2025: ₹ 55,139.04 Lakh

  • FY 2024: ₹ 45,213.23 Lakh

  • FY 2023: ₹ 35,781.20 Lakh

• EBITDA:

  • FY 2025: ₹ 8,381.00 Lakh

  • FY 2024: ₹ 4,527.29 Lakh

  • FY 2023: ₹ 4,792.79 Lakh

• Profit After Tax (PAT):

  • FY 2025: ₹ 4,730.70 Lakh

  • FY 2024: ₹ 2,094.86 Lakh

  • FY 2023: ₹ 2,473.81 Lakh

These figures highlight a significant revenue jump from FY 2023 to FY 2025, with profitability more than doubling during the same period. The company has benefited from strong demand for transformers and related components in India’s expanding power distribution and infrastructure sector.

Valuation Metrics

The company’s key performance indicators reveal both strengths and concerns:

• 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 P/E ratio: 27x

While the company’s ROCE (25.38%), ROE (29.00%), and RoNW (34.14%) are impressive, analysts believe the IPO is fully priced, if not slightly expensive, compared to industry peers. This could explain the limited subscription levels despite strong financials.

IPO Objectives

The net proceeds from the IPO will be directed towards:

1. Repayment or prepayment of borrowings amounting to ₹ 10,126.65 Lakh.

2. Capital expenditure of ₹ 8,785.63 Lakh for expanding the facility at Unit IV, Reengus, Sikar District, Rajasthan, aimed at increasing storage capacity and optimising space usage.

3. Working capital requirements of ₹ 12,200.00 Lakh, supporting day-to-day operations.

4. General corporate purposes.

These objectives underline the company’s focus on debt reduction, capacity expansion, and strengthening operational liquidity.

Promoters and Leadership

The company has grown under the leadership of Rahul Mangal, the Chairman and Managing Director, who brings over 35 years of experience in the power distribution and technology sectors. His expertise and vision have been instrumental in driving growth. Alongside him, Aniketa Mangal, who has been part of the Board since 2022, brings expertise in finance, operations, marketing, and sales, further strengthening the management team.

Review and Expert Opinion

Despite strong fundamentals and impressive financial growth, the IPO review suggests caution. Analysts note that the IPO appears fully priced and the GMP trend of ₹ 0 indicates no immediate listing gains. With a subscription level of just 1.09 times, the offering lacks the overwhelming demand seen in other IPOs during the year.

Thus, while long-term investors with confidence in the power infrastructure sector may find value in Mangal Electrical Industries, those seeking short-term listing gains are advised to avoid.

In conclusion, the Mangal Electrical Industries IPO showcases a company with solid financial growth, strong leadership, and ambitious expansion plans. However, the valuation and low grey market activity have cast doubt on its near-term prospects. With the allotment date set for August 25, 2025, and the listing date on August 28, 2025, investors must weigh the risks and opportunities carefully before making their 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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