The initial public offering (IPO) of Mangal Electrical Industries continued to see a decent response during the second day of the bidding process, majorly from retail investors.
The issue, which kicked off on Wednesday, August 20, was overall subscribed more than half on day one.
Jaipur-based Mangal Electrical Industries is selling its shares in the price band of Rs 533-561 apiece. Investors can apply for a minimum of 26 shares and its multiples thereafter. It is looking to raise Rs 400 crore via IPO, which is entirely a fresh share sale of 71,30,124 equity shares.
According to the data, the investors made bids for 65,68,354 equity shares, or 1.25 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 1.48 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 2.20 times. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for only 13 per cent as of the same time.
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.
The grey market premium (GMP) of Mangal Electrical Industries has seen a strong rise amid the rising volatility, thanks to the decent bidding for the issue. Last heard, the company was commanding a premium of Rs 35 per share in the unofficial market, suggesting 6 per cent listing gains for the investors. The GMP stood around Rs 25, a day ago.
Analysts mostly have a positive view on the issue, considering a strong financial performance, growth potential, diversified customers, rising demand, superior return profile and experienced promoters. However, risk of raw material prices, aggressive pricing and dependance on select clients are the major concerns for the issue.
In peer comparison, Mangal Electrical has delivered faster growth and stronger profitability. Returns are also better, with ROE at 29.2 per cent compared to the peer average of 14 per cent, said Nirmal Bang Securities. “However, valuations appear expensive compared to peer averages. Considering the high valuations and associated risks, we assign a ‘neutral’ rating to the IPO,” it added.
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. Ahead of its IPO, Mangal Electrical raised Rs 120 crore from anchor investors as it allocated 21,39,020 shares at Rs 561 apiece.
Mangal Electrical plans to establish collaboration with CRGO mill suppliers and is committed to diversifying existing product portfolio by introducing a broader range of innovative transformer solutions tailored to meet the diverse needs of customers across various sectors, said Master Capital. “Investors looking for long-term opportunities may consider investing in the IPO,” it said.
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.
Systematix Corporate Services is the book running lead manager for the IPO of Mangal Electrical Industries IPO 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.