Mangal Electrical Industries has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth up to ₹450 crore. The offering will be a fresh issue of shares, with no offer-for-sale (OFS) component.
The company may also consider a pre-IPO placement of up to ₹90 crore, which could involve a preferential allotment, rights issue, or another method. If this pre-IPO placement is completed, the size of the fresh issue will be reduced accordingly.
Use of IPO Proceeds: The funds raised from the IPO will be allocated to various purposes:
- ₹96.03 crore for repaying or prepaying outstanding borrowings.
- ₹120 crore for capital expenditure, including expanding the facility at Unit IV in Reengus, Sikar District, Rajasthan, and optimizing space and storage capacity at its head office in Jaipur.
- ₹122 crore to support working capital requirements and for general corporate purposes.
Offer Allocation: In the public offer, up to 50% of the issue will be allocated to qualified institutional buyers, while at least 15% will be reserved for non-institutional bidders and 35% for retail individual bidders.
About Mangal Electrical Industries: Mangal Electrical Industries specializes in the trading of CRGO and CRNO coils and amorphous ribbons. The company manufactures transformers and customized solutions for the power infrastructure sector, with transformer capacities ranging from 5 KVA single-phase units to 10 MVA medium-power three-phase units. Additionally, Mangal Electrical provides EPC (Engineering, Procurement, and Construction) services for electrical substations.
The company markets its products under the trusted brand name, Mangal Electrical, which has strong brand recognition.
Mangal Electrical operates five production facilities in Rajasthan, with an aggregate annual production capacity of:
- 16,200 MT for CRGO
- 7,50,000 KVA for transformers
- 75,000 units for ICB
- 2,400 MT for Amorphous units
Financial Performance: For the fiscal year 2024, the company’s revenue from operations increased by 26.86%, growing from ₹354.31 crore in FY 2023 to ₹449.48 crore. Its profit after tax decreased slightly from ₹24.74 crore in FY 2023 to ₹20.95 crore in FY 2024.
IPO Management: Systematix Corporate Services is the sole book-running lead manager for the IPO, while Bigshare Services Private Limited is the registrar. The equity shares will be listed on the National Stock Exchange of India (NSE) and BSE.
This IPO is expected to help Mangal Electrical Industries expand its facilities, enhance working capital, and solidify its position in the growing power infrastructure sector.
