Mangal Electrical IPO received 0.44 times subscription applications by midday of Day 1

Mumbai, 20 August 2025: Mangal Electrical IPO received 0.44 times subscription applications by midday of Day 1. The IPO opened today. Investors can subscribe from August 20 to August 22, 2025, with allotments expected on August 25 and tentative listing on the BSE and NSE on August 28, 2025. The IPO price band is set between ₹533 and ₹561 per share, with a minimum retail investment of ₹13,858 for 26 shares.

Mangal Electrical IPO Allotment and Investment Details Highlighted for Retail and HNI Investors

The IPO follows a book-building process, with Systematix Corporate Services Ltd. as the book running lead manager and Bigshare Services Pvt. Ltd. as the registrar. Retail investors can apply for 26 shares, while small HNIs may bid for 14 lots (364 shares) and big HNIs for 69 lots (1,794 shares), amounting to ₹10.06 lakh. The issue allocates a minimum of 35% to retail investors, 15% to non-institutional investors, and up to 50% to qualified institutional buyers.

Mangal Electrical’s Promoters Retain 74% Post IPO, Driving Strategic Expansion

Promoters Rahul, Ashish, Saroj, and Aniketa Mangal will retain a 74.19% stake post-IPO, diluting their pre-issue 100% shareholding. The company plans to use IPO proceeds to repay ₹101.27 crore of borrowings, expand its Reengus unit with ₹87.86 crore, fund ₹122 crore towards working capital, and support general corporate purposes.

Revenue Growth 22% and Profit Surges 126% in FY25 Reflect Strong Operational Performance

Mangal Electrical reported a total income of ₹551.39 crore for FY25, up from ₹452.13 crore in FY24, driven by robust transformer sales and EPC projects. Profit after tax rose to ₹47.31 crore from ₹20.95 crore, while EBITDA jumped to ₹81.84 crore, demonstrating operational efficiency and cost management. Net worth increased to ₹162.16 crore, supported by moderate borrowings of ₹149.12 crore. The company’s debt-to-equity ratio stands at 0.92, with ROE of 29% and ROCE of 25.38%, highlighting strong returns for investors.

Key Financial Ratios Suggest Healthy Valuation Metrics for Potential Investors

Mangal Electrical’s pre-IPO EPS of ₹23.08 is expected to adjust to ₹17.12 post-IPO, with a P/E ratio rising from 24.31x to 32.77x. The PAT margin of 8.61% and EBITDA margin of 14.90% underline operational profitability, while price-to-book stands at 7.09. These metrics indicate attractive growth potential amid steady financial performance and robust market positioning.

Mangal Electrical, Rajasthan-Based Transformer Manufacturer, Strengthens Power Infrastructure Segment

Incorporated in 2008, Mangal Electrical Industries Limited manufactures transformers ranging from 5 KVA to 10 MVA, CRGO and CRNO coils, amorphous ribbons, and oil-immersed circuit breakers. Operating five production facilities in Rajasthan, the company has an annual capacity of 16,200 MT for CRGO, 10,22,500 KVA for transformers, and 2,400 MT for amorphous units. Its products are marketed under the brand “Mangal Electrical,” serving diverse customers across the power sector.

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