The initial public offering (IPO) of Mangal Electrical Industries saw a decent response during the third and final day of the bidding process, thanks to all-around demand.
The issue was overall subscribed more than half on day one and ended day two with nearly two times bidding.
Mangal Electrical Industries, based in Jaipur, has set its IPO price band between Rs 533 and Rs 561 per share. The IPO, aiming to raise Rs 400 crore, opens today and requires a minimum investment in lots of 26 shares. The issue is entirely a fresh sale of 71,30,124 equity shares, managed by Systematix Corporate Services. Allocation is reserved for QIBs at 50%, with NIIs and retail investors at 15% and 35% respectively. Anchor investors have already committed Rs 120 crore.
According to the data, the investors made bids for 4,87,70,098 equity shares, or 9.28 times, compared to the 52,53,301 equity shares offered for the subscription by 1.40 pm on Thursday, August 21, 2025. The three day bidding for the issue shall conclude on Friday, August 22.
The allocation for retail investors was subscribed 4.54 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 18.70 times. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for 10.54 times as of the same time.
The IPO seeks to fund Mangal Electrical’s expansion. Incorporated in 2008, the company manufactures transformers for electrical distribution. With revenue at Rs 551.39 crore and a net profit of Rs 47.31 crore for the year ending March 2025, Mangal Electrical shows promising growth, surpassing the previous year’s revenue of Rs 452.13 crore and net profit of Rs 20.95 crore.
Mangal Electrical Industries processes components including lamination and CRGO slit coils. The company benefits from a diversified customer base and rising demand. Its experienced promoters bolster investor confidence, although risks remain in raw material price fluctuations and client dependence.
Experts suggest that Mangal Electrical’s financial performance makes it a favourable investment, though cautioning about possible pricing and client risks. Its financial metrics underscore its competitive edge.
Mangal Electrical Industries Limited is demanding a P/S multiple of 2.82 times and a P/E multiple of 24.3 times based on FY25 earnings. The industry average P/E multiple is 27.38 times, said IIFL Capital.
“Considering that it is one of the leading players in power infrastructure sector in processing of transformer components and manufacturing of transformers, has a diversified customer base, has strong backward and forward integration which ensures operational efficiency, has a proven track record of consistent growth, plans of expanding manufacturing capacity at its existing facilities and expanding existing product portfolio, we recommend subscribe to the issue,” it added.
The competitive landscape shows a promising market position for Mangal Electrical, commanding a market capitalisation of Rs 1,550.05 crore. The current grey market premium (GMP) is Rs 18 per share, suggesting a potential listing gain of 3%. The GMP has nearly halved from Rs 35 on day one amid rising market volatility.
Mangal Electrical has delivered consistent revenue growth with sustained profitability since inception, supported by strong financial discipline and operational efficiency, Arihant Capital Markets.
“Its integrated business model combining backward integration in CRGO processing and forward integration into transformer manufacturing and EPC has contributed to stable margins and predictable cash flows. The issue is valued at a P/E ratio of 32.77 times, based on PAT of FY25 EPS of Rs 17.1. We are recommending a ‘neutral’ rating for this issue,” it said.
Shares are expected to list on the BSE and NSE on August 28. The IPO closes on August 25, with the basis of allotment by August 27. Refunds will initiate soon after, and shares are to be credited to demat accounts by August 28.