Mangal Electrical Industries Limited is coming up with its Initial Public Offering (IPO). The company, engaged in transformer manufacturing and electrical equipment components, plans to raise funds worth ₹400 crore through a fresh issue. With the IPO scheduled to open on August 20, 2025, and close on August 22, 2025, investors are keen to know whether this issue is worth subscribing. In this article, we provide a detailed Mangal Electrical IPO Review, covering its company profile, financials, competitive strengths, IPO issue details, valuation analysis, reasons to invest, risk factors, grey market premium (GMP), and our conclusion on whether to invest or avoid.
About Mangal Electrical Industries Ltd.
Founded in 2008, Mangal Electrical Industries Limited is engaged in manufacturing transformers and transformer components such as CRGO slit coils, amorphous cores, and oil-immersed circuit breakers. The company also trades CRGO/CRNO coils and provides EPC services for electrical substations.
The company operates five production facilities in Rajasthan with robust capacities:
- CRGO processing: 16,200 MT annually
- Transformers: 10,22,500 KVA capacity
- ICB: 75,000 units
- Amorphous cores: 2,400 MT annually
It markets its products under the “Mangal Electrical” brand, known for reliability and efficiency in the power infrastructure sector. As of June 30, 2025, the company employed 761 permanent staff.
Competitive Strengths
- Strong promoter leadership with industry expertise.
- Backward and forward integration ensuring operational efficiency.
- NABL and PGCIL lab approvals along with ISO certifications.
- Diversified customer base, including government utilities and private energy producers.
- Consistent revenue growth and profitability.
Mangal Electrical IPO Issue Details
- IPO Date: August 20, 2025 – August 22, 2025
- Listing Date (Tentative): August 28, 2025
- Face Value: ₹10 per share
- Price Band: ₹533 – ₹561 per share
- Lot Size: 26 shares
- Minimum Investment (Retail): ₹13,858
- IPO Size: ₹400 crore (Fresh Issue of 71,30,124 shares)
- Issue Type: Book Building IPO
- Listing At: BSE, NSE
- Lead Manager: Systematix Corporate Services Ltd.
- Registrar: Bigshare Services Pvt. Ltd.
Reservation
- QIB – Not more than 50%
- NII – Not less than 15%
- Retail – Not less than 35%
Company Financials
Mangal Electrical Industries – Financial Performance (₹ in Crores)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets | 221.26 | 246.54 | 366.46 |
| Revenue | 357.81 | 452.13 | 551.39 |
| EBITDA | 44.42 | 42.63 | 81.84 |
| PAT | 24.74 | 20.95 | 47.31 |
| Net Worth | 93.97 | 114.99 | 162.16 |
| Borrowings | 96.64 | 92.12 | 149.12 |
Key Ratios:
- ROE: 29%
- ROCE: 25.38%
- Debt-to-Equity: 0.92
- PAT Margin: 8.61%
- EBITDA Margin: 14.9%
The company reported 22% revenue growth and a 126% rise in PAT between FY24 and FY25.
Objects of the Issue
The IPO proceeds of ₹400 crore will be used for:
- Debt repayment: ₹101.27 crore
- Expansion at Unit IV (Rajasthan): ₹87.86 crore
- Working capital requirements: ₹122 crore
- General corporate purposes
Valuation and P/E Comparison
- Pre-IPO EPS: ₹23.08 | P/E: 24.31x
- Post-IPO EPS: ₹17.12 | P/E: 32.77x
- Industry Peers P/E:
- Highest: Transformers & Rectifiers – 41x
- Lowest: Voltamp Transformers – 21x
- Industry Average: ~31x
At the upper band, Mangal Electrical IPO is valued at 32.77x, which is slightly above the industry average.
Reasons to Invest in Mangal Electrical IPO
- Strong financial growth with robust margins.
- Increasing demand for transformers and energy-efficient electrical components.
- Well-established brand with government and private sector clientele.
- Expansion plans likely to boost capacity and future revenues.
- Reasonable P/E valuation compared to peers.
Risk Factors
- High dependence on raw material supply and price volatility.
- Increased borrowings may strain balance sheet despite planned debt repayment.
- Competition from domestic and global transformer manufacturers.
- Profitability sensitive to power and fuel costs.
- Reliance on contract labour for EPC projects.
Grey Market Premium (GMP)
As of now, Mangal Electrical IPO GMP is trending around ₹70 – ₹80 per share, indicating moderate listing gains potential. (Note: GMP keeps changing and should not be the sole investment criteria.)
How to Apply for Mangal Electrical IPO?
- Investors can apply via ASBA through their net banking facility.
- UPI-based IPO applications are allowed for retail investors.
- Applications can also be made through stockbrokers, depository participants, and registrar portals.
FAQs on Mangal Electrical IPO
1. What are the Mangal Electrical IPO dates?
The IPO opens on August 20, 2025, and closes on August 22, 2025.
2. What is the Mangal Electrical IPO price band?
The price band is set at ₹533 – ₹561 per share.
3. What is the minimum investment required?
Retail investors need to apply for at least 26 shares, costing ₹13,858.
4. When will the IPO list?
Tentative listing date is August 28, 2025 on BSE and NSE.
5. What is the GMP of Mangal Electrical IPO?
Currently, GMP is around ₹70 – ₹80 per share.
6. Should I invest in Mangal Electrical IPO?
The IPO is fairly priced with strong fundamentals, but risks remain from raw material costs and competition. Long-term investors may consider subscribing.
7. Who are the lead manager and registrar of the issue?
Systematix Corporate Services Ltd. is the lead manager, and Bigshare Services Pvt. Ltd. is the registrar.
Conclusion – Invest or Avoid?
Mangal Electrical IPO comes with a mix of positives and risks. The company has shown consistent growth in revenue and profits, enjoys strong brand presence, and has robust expansion plans. Valuation is slightly above industry average but supported by strong financial performance.
Recommendation: Risk taking investors with a long-term horizon may subscribe to this IPO, while those seeking quick listing gains should track the GMP trend before applying.
Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to subscribe or avoid any IPO. Investors should carefully read the Red Herring Prospectus (RHP) and consult their financial advisor before making any investment decision.
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