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Mangal Electrical IPO Day 1 Live: The initial public offering (IPO) for Mangal Electrical Industries, a manufacturer of transformer components, will be available for public subscription from August 20 to August 22. Mangal Electrical IPO price band has been set between ₹533 and ₹561 per share. Mangal Electrical IPO consists entirely of a fresh share issue valued at ₹400 crore. 

The funds raised from this fresh issue will be utilized to settle debts, enhance the company’s facility located in Rajasthan, and cover working capital needs for various general corporate purposes.

Mangal Electrical Industries specialises in processing transformer components, including transformer lamination, amorphous cores, coil assemblies, core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers.

The company's clientele includes government electricity distribution companies as well as private firms such as Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd, and Western Electrotrans. It has also exported its transformer components to countries including the Netherlands, the United Arab Emirates, Oman, the USA, Italy, and Nepal.

Systematix Corporate Services acts as the sole book-running lead manager, while Bigshare Services serves as the registrar for this issue.

(Stay tuned for more updates)

1. The costs of the raw materials that used in manufacturing process are subject to volatility due to factors beyond our control. Increases or fluctuations in raw material prices may have a material adverse effect on the business, financial condition, results of operations, and cash flows.

2. It is heavily dependent on the performance of the CRGO products and transformer product components. Any adverse changes in the conditions affecting the CRGO products and transformer products market can adversely impact the business.

3. Any disruption, breakdown, or shutdown of manufacturing facilities or original equipment manufacturer (OEM) suppliers may have a material adverse effect.

4. Dependence on a limited number of customers and any change in customer composition may adversely impact the business.

5. The company depends significantly on contract labor, and an inability to access contract labour at reasonable costs at project sites may adversely affect business.

Mangal Electrical IPO Day 1 Live: The Indian transformer industry is projected to grow from ₹353.9 bn in FY25 to ₹523 bn by FY30 (8.1% CAGR), supported by renewable energy expansion. CRGO steel, a critical raw material, is expected to rise from ₹70.8 bn to ₹104.6 bn over the same period.

The company is expanding into high-voltage (132 KV–200 MVA), inverter duty, and dry-type transformers, while focusing on backward integration through in-house CRGO processing and tank fabrication. Unit IV expansion will be phased, starting January 2026.

It operates in a high working capital environment, importing ~80% of CRGO steel, with raw material forming ~40% of costs. Planned capex of ₹95–100 cr will be executed within 18 months, funded through the IPO ( ₹400 cr: ₹100 cr capex, ₹100 cr debt repayment, ₹100 cr working capital, ₹80 cr general purposes). EPC forms 5–10% of revenue as forward integration.

With P/E of 24.3x vs peer average 26x, valuations appear reasonable. We recommend Subscribe for long-term gains, though margins remain vulnerable to raw material price volatility, as seen in FY24 when costs rose 21%.

Mangal Electrical IPO Day 1 Live: The initial public offering for Mangal Electricals was subscribed 3% so far on the first day of the bidding process. The QIB portion did not see any bids, NII portion was booked 2% and the retail segment 5%.

Mangal Electrical IPO Day 1 Live: The bidding for Mangal Electrical IPO opened at 10 am today. Investors can apply for the IPO till 5 pm. In case you don't apply today, you have the option to apply over the next two days as well.

Mangal Electrical IPO Day 1 Live: The company plans to use the funds raised for the following purposes:

Mangal Electrical IPO Day 1 Live: “At the upper price band, the company is valued at an FY25 P/E of 32.8x, with a post-issue market capitalization of ₹15,500 million. In recent years, India’s substation capacity has grown significantly, driven by rising electricity demand, creating a favorable environment for transformer manufacturing. This consistent demand supports production planning and operational efficiency. Based on these factors, the IPO appears fully priced, with a “SUBSCRIBE – LONG TERM” recommendation,” Anand Rathi said in a note.

Mangal Electrical IPO Day 1 Live: Mangal Electrical Industries on Tuesday mobilised ₹120 crore from anchor investors, just a day before its initial share-sale opening for public subscription.

The institutional investors who participated in the anchor round included Abakkus Diversified Alpha Funds, LC Pharos Multi Strategy Fund VCC, Societe Generale, Finavenue Capital Trust, Swyom India Alpha Fund, Sundaram Alternative Investment Trust, Imap India Capital Investment Trust, Sunrise Investment Trust and Aarth AIF Growth Fund, according to a circular uploaded on BSE's website.

As per the circular, the company has allotted 21.39 lakh equity shares to these institutional investors at ₹561 apiece, taking the total fundraising to ₹120 crore.

Mangal Electrical IPO GMP today is +25. This indicates Mangal Electrical share price were trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mangal Electrical share price was indicated at ₹586 apiece, which is 4.46% higher than the IPO price of ₹561.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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