Mangal Electrical Industries Ltd. is tapping the primary markets in August 2025 with a mainboard IPO aimed at funding growth in India’s fast-expanding power infrastructure space. If considering an application, here’s a simple, complete breakdown—key dates, price band, lot size, business profile, financial highlights, risks, use of proceeds, and how to apply—so decisions are quick and confident.
Key IPO Details
- IPO dates: August 20–22, 2025
- Price band: ₹533–₹561 per share
- Lot size: 26 shares (minimum application ≈₹14,586 at the upper band)
- Issue size: ₹400 crore (100% fresh issue; no OFS)
- Listing: BSE & NSE (mainboard)
- Registrar: Bigshare Services Pvt. Ltd.
- Book running lead manager: Systematix Corporate Services
What the Company Does
Founded in 1989 and headquartered in Jaipur, Mangal Electrical Industries processes and manufactures critical components for the power T&D ecosystem and builds distribution/medium-power transformers. Its offerings include:
- CRGO/CRNO slit coils, transformer laminations, amorphous ribbons and cores
- Core assemblies and wound/toroidal cores
- Oil-immersed circuit breakers (ICBs)
- Transformers: single-phase 5KVA to three-phase 10MVA
- EPC services for electrical substations
Operations span five facilities in Rajasthan with notable installed capacities, including 16,200MT for CRGO processing, up to 1,022,500kVA transformer capacity, 75,000 ICB units, and 2,400MT amorphous cores per annum.
Financial Highlights
- Revenue from operations: ₹354.31 crore (FY23) → ₹449.48 crore (FY24) → ₹549.42 crore (FY25)
- EBITDA: ₹44.42 crore (FY23) → ₹42.63 crore (FY24)
- Capacity utilization saw variability, with high utilization in FY23 and normalization in FY24.
- Customer base includes Indian utilities and private players; exports to the US, UAE, Netherlands, Oman, Italy, and Nepal.
The multi-year growth in revenue underscores rising demand across utilities and industrial users, while margin stability is a key watchpoint amid input and power cost swings.
Use of IPO Proceeds
According to offer documents and broker summaries, proceeds will be used for:
- Partial debt repayment/prepayment (~₹101.3 crore)
- Capex to expand Unit IV at Reengus, Sikar (₹87.9 crore)
- Working capital (₹122 crore)
- General corporate purposes
Competitive Strengths
- Approvals and certifications: NABL accreditation and PGCIL approvals at Unit IV (132kV–400kV), ISO 9001:2015 and ISO 14001:2015, and NTPC approval for CRGO processing—differentiators in a regulated segment.
- Integrated manufacturing: Backward linkages in core processing plus forward presence in transformers and EPC improve control and responsiveness.
- Diversified customer base with public and private sector clients and a growing export footprint.
- Established brand with decades-long operating history in power components and transformers.
Key Risks
- Working-capital intensity: Inventory and receivables cycles in T&D components and EPC can pressure cash flows.
- Input and energy costs: Profitability sensitive to steel (CRGO/CRNO) prices and power/fuel costs.
- Capacity utilization swings: Demand cycles and tender timing can create utilization volatility.
- Project execution: EPC contracts carry execution, penalty, and credit risks.
- Supplier dependence and logistics disruptions could affect delivery schedules.
Valuation Checks (What to Review)
Before applying, compare with listed transformer/component peers on:
- Growth trend in revenue and order book
- Gross/EBITDA margin sustainability
- ROCE/ROE relative to peers
- Balance sheet leverage and interest coverage
- Post-issue valuation (P/E, EV/EBITDA) versus growth and certification moat
- Tracking difference between reported profits and cash flow from operations over time
How to Apply
- Apply via ASBA (net banking) or UPI through a broker app during Aug 20–22.
- Select “Mangal Electrical Industries Ltd,” choose lots (26 shares per lot), bid at cut-off within ₹533–₹561, and approve the UPI mandate promptly.
- Check allotment on Bigshare after basis finalization; listing follows shortly thereafter.
Bottom Line
Mangal Electrical Industries offers exposure to India’s grid modernization and substation build-out with an integrated product suite and credible approvals. Growth has been consistent, and IPO proceeds target capex and balance-sheet strengthening. Investors should weigh certification-led moat and export reach against working-capital needs, input cost sensitivity, and utilization variability. Allocate based on risk tolerance and a medium-term horizon.