Mangal Electrical Industries IPO subscribed 9.46 times on final day

Mangal Electricals’ Rs 400 crore IPO saw robust investor demand, with an overall subscription of 9.46 times on the final day. As per stock exchange data, the offering received bids for 4.96 crore equity shares against 52.53 lakh shares on offer, within a price band of Rs 533–Rs 561. In the grey market, the stock was trading at a modest 6% premium over its issue price of Rs 561 per share.

Mangal Electrical IPO GMP Today:

As of August 22, the latest Grey Market Premium (GMP) for Mangal Electricals IPO is Rs 34. Given the IPO price band is set at Rs 561, this translates to an estimated premium of approximately 6.06%. Based on this, the expected listing price is around Rs 595.

Note: GMP (Grey Market Premium) reflects investor sentiment and is an unofficial indicator of the likely listing price. It can change frequently and does not guarantee actual performance on the listing day.

Mangal Electrical IPO Subscription Status:

Mangal Electrical Industries Limited’s Initial Public Offering (IPO) saw strong demand, with an overall subscription of 9.46 times on the final day of bidding. The issue received bids for 4.96 crore equity shares against the 52.53 lakh shares on offer, within the price band of ₹533–₹561, as per data from the stock exchanges.

Subscription Breakdown:

The IPO saw an overall subscription of 9.46 times, indicating strong investor interest across categories. The retail investor segment was subscribed 4.84 times, showing healthy participation from individual investors.

The Qualified Institutional Buyers (QIBs) portion attracted significant demand, with subscriptions reaching 10.54 times the allotted quota.

Meanwhile, the Non-Institutional Investors (NIIs) category witnessed the highest enthusiasm, getting subscribed 18.79 times, reflecting strong appetite from high-net-worth individuals and other large investors.

Mangal Electrical IPO: Anchor Investor Allotment

Transformer components manufacturer Mangal Electrical Industries raised Rs 120 crore from anchor investors on Tuesday, a day before its IPO opened for public subscription.

As per a circular released on the BSE website, the anchor book featured notable institutional participants such as Abakkus Diversified Alpha Fund, 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.

Mangal Electrical IPO: Key Details

Mangal Electrical Industries has allocated 21.39 lakh equity shares to anchor investors at the upper end of the price band — Rs 561 per share — raising Rs 120 crore ahead of its public offering.

The Rs 400 crore IPO consists entirely of a fresh issue of shares and is open for subscription from August 20 to August 22, with a price band set between Rs 533 and Rs 561 per share.

The proceeds from the fresh issue will be utilized to repay debt, expand the company’s manufacturing facility in Rajasthan, and support working capital needs along with general corporate purposes.

Mangal Electrical Industries is engaged in the manufacturing of transformer components, including transformer laminations, amorphous cores, coil assemblies, core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers.

Its clientele includes state-owned power distribution companies such as Ajmer Vidyut Vitran Nigam Ltd and Jaipur Vidyut Vitran Nigam Ltd, along with private sector firms like Voltamp Transformers Ltd and Western Electrotrans. The company also exports its products to countries like the Netherlands and the United Arab Emirates.

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

Financials

Mangal Electrical Industries’ revenue grew by 22% to Rs 551 crore, while its profit after tax (PAT) surged by 126% to Rs 47 crore for the financial year ending March 31, 2025, compared to the previous year ending March 31, 2024.

Should you subscribe?

According to Anand Rathi’s research report, at the upper price band, the company is valued at a FY25 price-to-earnings (P/E) ratio of 32.8x, with a post-issue market capitalization of Rs 15,500 million. In recent years, India’s substation capacity has expanded significantly due to increasing electricity demand. This growth has created a favorable environment for transformer manufacturing, characterized by steady demand that supports effective production planning and operational efficiency. Considering these factors, the IPO is viewed as fully priced, and Anand Rathi recommends a “SUBSCRIBE – LONG TERM” rating.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)