Mangal Electrical Industries IPO opens for subscription; GMP at 4%. Should you bid?

Mangal Electrical Industries launched its Rs 400-crore IPO on Wednesday. The issue, which is entirely a fresh equity issue of 71.3 lakh shares, will close on Friday. The price band has been fixed at Rs 533–561 per share, and the company is expected to list on both NSE and BSE on August 28.

Mangal Electrical Industries IPO GMP

The grey market premium (GMP) is currently around 4%, indicating modest listing expectations.

Mangal Electrical: About the company

The Jaipur-based company, established in 1989, manufactures transformer components such as CRGO slit coils, laminations, oil-immersed circuit breakers, and transformers ranging from 5 KVA to 10 MVA.

It also undertakes EPC projects for substations. The company operates five manufacturing units with an annual capacity of 16,200 MT of CRGO steel processing and over 1,022,500 KVA of transformer manufacturing.

The IPO proceeds will be utilised for repayment of borrowings (Rs 101.3 crore), expansion of Unit IV in Rajasthan (Rs 87.9 crore), working capital needs (Rs 122 crore), and general corporate purposes.

Financially, the company has posted steady growth. Revenue rose to Rs 549 crore in FY25 from Rs 449 crore in FY24, while profit after tax more than doubled to Rs 47 crore from Rs 21 crore. Margins improved, with EBITDA rising to Rs 82 crore in FY25, translating into a 14.9% margin.

At the upper price band, the issue is valued at 24.3x FY25 earnings, broadly in line with listed peers such as Jay Bee Laminations and Vilas Transcore.

Should you subscribe?

Canara Bank Securities recommended a Subscribe rating to the IPO, citing strong financial growth, sectoral tailwinds from power infrastructure expansion, and reasonable valuations relative to peers. However, they caution that heavy dependence on imported CRGO steel, working-capital intensity, and customer concentration remain key risks.