The initial public offering (IPO) of Mangal Electrical Industries shall open for bidding on Wednesday, August 20, 2025. The company shall be offering its shares in the range of Rs 533-561 apiece, with a lot size of 26 shares and its multiples thereafter.
The issue shall close for bidding on Friday, August 22.
The IPO of Mangal Electrical Industries is entirely a fresh sale of 71,30,124 equity shares worth Rs 400 crore. The net proceeds from the issue shall be utilized towards debt repayment; capital expenditure for expanding the facility at Unit IV situated at Reengus Sikar District, Rajasthan; funding working capital requirement; and general corporate purposes.
Incorporated in 2008, Jaipur-based Mangal Electrical Industries is engaged in manufacturing the transformers that are used for the distribution and transmission of electricity in the power sector. It processes transformer components, including lamination, CRGO slit coils, amorphous cores, coil and core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers.
Mangal Electrical Industries raised Rs 120 crore from anchor investors as it allocated 21,39,020 shares at Rs 561 apiece. Anchor book included names like Abakkus Diversified Alpha Fund, LC Pharos Multi Strategy Fund VCC, Societe Generale, Finavenue Capital Trust, Sundaram Alternative Investment Trust, Sunrise Investment Trust, Aarth AIF Growth Fund, Steptrade Revolution Fund and more.
Mangal Electrical Industries reported a net profit at Rs 47.31 crore with a revenue of Rs 551.39 crore for the financial year ended on March 31, 2025. Its net profit stood at Rs 20.95 crore with a revenue of Rs 452.13 crore for the year 2023-24. The company shall command a market capitalization of Rs 1,550.05 crore at current valuations.
Mangal Electrical Industries has reserved 50 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) and retail investors will have 15 per cent and 35 per cent of allocation, respectively. Last heard, its grey market premium (GMP) stood at Rs 25 apiece, suggesting 5 per cent uspide.
Systematix Corporate Services is the book running lead manager and Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE, with August 28, Thursday as the tentative date of listing. Here’s what a host of brokerage firms said about the IPO of Mangal Electrical Industries:
IIFL Capital
Rating: Subscribe
Mangal Electrical 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. The company has a diversified customer base, has strong backward and forward integration which ensures operational efficiency, 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. It 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.
Anand Rathi Shares & Stock Broking
Rating: Subscribe for long-term
Mangal Electrical plans to expand manufacturing capacity through technology and infrastructure upgrades to meet rising demand. They are enhancing operational capacity by securing 765 kV class approval from PGCIL, which strengthens their technical capabilities, boosts competitiveness, and positions them to meet the growing demand for high-capacity transmission solutions, said Anand Rathi.
“The company is valued at a FY25 P/E of 32.8 times In recent years, India’s substation capacity has grown significantly, driven by rising electricity demand, creating a favorable environment for transformer manufacturing with consistent demand supporting production planning and operational efficiency. The IPO appears fully priced,” it added with a ‘subscribe for long-term’ rating.
Arihant Capital Markets
Rating: Neutral
Arihant Capital Markets has delivered consistent revenue growth with sustained profitability since inception, supported by strong financial discipline and operational efficiency, said Arihant Capital Markets in its IPO note.
“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.
SBI Securities
Rating: Subscribe
Mangal Electrical is valued at an FY25 P/E of 32.8x at post-issue capital at the upper price band respectively. Revenue, Ebitda and PAT grew at 29 per cent, 47 per cent and 73 per cent CAGR during FY22-25. ROE was 34 per cent and ROCE 25 per cent, among the best in the sector. Leverage is moderate at 0.92 times debt/equity, said SBI Securities.
“The transformer industry is projected to report 8 per cent CAGR till FY30, driven by Rs 9.16 lakh crore of T&D capex under the National Electricity Plan, renewable integration (500 GW target) and 100 per cent railway electrification. CRGO component demand too is set to grow at 8 per cent CAGR from FY24-FY30E. We recommend investors to ‘subscribe’ to the issue,” it said.
Canara Bank Securities
Rating: Subscribe for long-term
Mangal Electrical is expanding into high-voltage, inverted duty, and dry-type transformers, while focusing on backward integration through in-house CRGO processing and tank fabrication. Unit IV expansion will be phased from January 2026. It operates in a high working capital environment, importing 80 per cent of CRGO steel, with raw material forming 40 per cent of costs, said Canara Bank Securities.
“Planned capex of Rs 95-100 crore will be executed within 18 months, funded through the IPO. EPC forms 5-10 per cent of revenue as forward integration. With P/E of 24.3 times, 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 per cent,” it added.
Ventura Securities
Rating: Subscribe
While Mangal Electrical’s manufacturing units face underutilized capacity in some areas, the company is focused on increasing production efficiency, improving capacity utilization, and expanding its geographical footprint to reduce its regional dependency, said Ventura Securities.
“Additionally, its strategic focus on quality, technological investments, and strong customer relationships provides a solid foundation for continued growth, particularly with the increasing demand in the power infrastructure and renewable energy sectors,” it said with a ‘subscribe’ rating.
SMIFS
Rating: Subscribe
“We recommend subscribing to the IPO, supported by planned capex at Unit IV (Sikar) for CRGO processing, amorphous cores, and transformers, potential ramp-up in capacity utilization, and a healthy order book of Rs 294.2 crore that provides strong revenue visibility, along with the company’s industry-leading ROE and ROCE, making it a good long term opportunity,” said SMIFS.