MANGAL ELECTRICAL INDUSTRIES IPO

Key Offer Details

Mangal Electrical Industries, a significant player in India’s power infrastructure sector, is set to launch its Initial Public Offering (IPO). This public issue presents an investment opportunity in a company renowned for manufacturing essential transformers and processing key transformer components. With a fresh issue size of ₹400 Crores, the IPO aims to fuel the company’s strategic growth initiatives and reinforce its financial stability, positioning it for continued expansion within a crucial industry.

Important Dates for Investors

• Opening Date: 20 Aug 2025
• Closing Date: 22 Aug 2025
• UPI Payment Deadline: 22 Aug 2025 (5:00 PM)
• Allotment Finalization: 25 Aug 2025
• Refund Initiation: 26 Aug 2025
• Demat Account Credit: 26 Aug 2025
• Stock Market Listing: 28 Aug 2025
• Mandate Validity End: 06 Sep 2025
• Anchor Investor Lock-in Release (50%): 24 Sep 2025
• Anchor Investor Lock-in Release (Remaining): 23 Nov 2025

*Dates may be revised as per official updates from the company or stock exchanges.

Understanding Mangal Electrical Industries

Incorporated in 2008, Mangal Electrical Industries has carved out a strong niche within the critical power infrastructure sector. The company’s primary business activities involve the manufacturing of various types of transformers, which are indispensable for the efficient transmission and distribution of electricity. Demonstrating an integrated approach to its operations, Mangal Electrical Industries also specializes in the processing of vital transformer components, including CRGO slit coils, amorphous cores, and core assemblies.

Beyond its manufacturing prowess, the company’s diverse portfolio extends to the trading of CRGO/CRNO coils, fundamental raw materials for the electrical industry, and the provision of comprehensive EPC (Engineering, Procurement, and Construction) services tailored for establishing electrical substations. This breadth of offerings enables Mangal Electrical Industries to address a wide spectrum of requirements across the power value chain.

Mangal Electrical Industries upholds a steadfast commitment to quality and operational excellence, evidenced by its prestigious NABL (National Accreditation Board for Testing and Calibration Laboratories) and PGCIL (Power Grid Corporation of India Limited) lab approvals, alongside multiple ISO certifications. Operating under the recognized brand “Mangal Electrical,” the company serves a broad and distinguished clientele, encompassing both government utilities and private energy producers throughout India. Furthermore, it is actively exploring and expanding its footprint into international markets. The foundation of its reputable standing in the energy transmission and distribution landscape is built upon robust in-house quality control mechanisms, the strategic deployment of advanced German manufacturing equipment, and a well-diversified product and service portfolio.

IPO Issue Structure and Capital Raise

The Mangal Electrical Industries IPO is structured as an entirely fresh issue of equity shares. This means that all capital raised through the offering will be directly injected into the company, rather than being used for existing shareholders to sell their stakes (Offer for Sale). This structure is generally viewed positively by investors, as it signifies the company’s clear intent to deploy the funds for its growth and operational needs.

The complete fresh issue underscores the company’s commitment to utilizing the capital for its stated business objectives. These objectives are primarily focused on fortifying its manufacturing capabilities, broadening its operational scope, and enhancing its overall financial health. This significant infusion of capital is anticipated to provide the necessary momentum for Mangal Electrical Industries to effectively leverage the expanding opportunities within the dynamic power infrastructure segment.

Strategic Utilization of IPO Proceeds

Mangal Electrical Industries has outlined a clear strategy for the deployment of the net proceeds from its IPO. The capital infusion is earmarked for several crucial initiatives designed to bolster its operational capabilities, expand its infrastructure, and strengthen its balance sheet, thereby ensuring a trajectory of sustainable growth. The allocation reflects a balanced approach, addressing debt management, capacity expansion, and working capital requirements.

A substantial portion of the proceeds is dedicated to managing existing debt, a move that is expected to enhance the company’s financial stability and reduce its interest burden. The investment in capital expenditure for the expansion of Unit IV in Rajasthan demonstrates a forward-looking vision for increasing manufacturing capacity and optimizing operational efficiency. Furthermore, securing adequate funding for working capital requirements is vital for supporting seamless day-to-day operations and facilitating future business growth. The allocation for general corporate purposes provides essential flexibility, enabling the company to capitalize on emergent opportunities or address unforeseen operational exigencies effectively.

Distinct Advantages and Business Strengths

Mangal Electrical Industries distinguishes itself with several key strengths that contribute to its competitive positioning within the power infrastructure sector:

• Strong Promoter Leadership and Experienced Management: The company benefits from the guidance of seasoned leadership and a highly experienced management team. This provides a stable strategic direction, fosters operational efficiency, and ensures effective navigation through complex market dynamics, crucial for sustainable growth and innovation.
• Selective Regulatory Approvals: Possessing critical regulatory approvals such, NABL and PGCIL, signifies the company’s adherence to stringent quality and performance benchmarks. This not only enhances its credibility but also expands its market access, particularly in securing government tenders and participating in large-scale infrastructure projects.
• Diversified Customer Base: By serving a mix of government utilities and private energy producers, both domestically and internationally, the company significantly reduces its dependence on any single client segment. This diversification ensures more stable revenue streams and effectively mitigates business-specific risks.
• Integrated Operations for Efficiency: The company’s capability to manufacture both complete transformers and their essential components, coupled with its EPC services, grants it greater control over its supply chain, quality standards, and cost structures. This integrated approach leads to enhanced operational efficiency and competitive pricing strategies.
• Consistent Growth Track Record: A history of consistent financial and operational growth underscores the effectiveness of its business strategies, the strong market acceptance of its products and services, and its robust execution capabilities, instilling confidence among stakeholders.

Key Risks to Consider

While Mangal Electrical Industries presents a promising investment opportunity, potential investors should also carefully consider the following inherent risks:

• Dependence on Third-Party Suppliers and Logistics: The company’s reliance on external suppliers for critical raw materials and third-party logistics for transportation exposes it to potential supply chain disruptions, quality control challenges, and price volatility. Such factors could significantly impact production schedules and overall operating costs.
• High Power and Fuel Dependency: Manufacturing processes within the electrical industry are typically energy-intensive. Fluctuations in power and fuel costs can directly influence the company’s operational expenses and profit margins, making it susceptible to volatility in energy markets.
• Reliance on Contract Labour at Project Sites: The extensive use of contract labor, particularly for its EPC services, may introduce challenges related to labor management, the availability of skilled personnel, and potential industrial relations issues. These factors could affect project timelines and overall execution efficiency.
• Cyclical Nature of the Power Infrastructure Sector: The company operates within a sector that is significantly influenced by government policies, broader economic cycles, and fluctuating infrastructure spending. This inherent cyclicality can lead to periods of varying demand for its products and services.
• Intense Competition: The transformer and electrical component manufacturing industry is highly competitive, comprising numerous organized and unorganized players. This intense market rivalry could exert downward pressure on pricing and potentially impact the company’s market share and profitability.

Investor Interest and Subscription Status

The subscription figures for the Mangal Electrical Industries IPO offer valuable insights into the market’s reception and the level of investor interest across various categories. As of the closing date, the issue garnered robust demand, signaling positive sentiment from a broad spectrum of investors.

The impressive oversubscription rates, particularly from Non-Institutional Investors and Qualified Institutional Buyers, reflect significant confidence in the company’s business model and its future growth prospects. Retail individual investors also demonstrated keen interest, underscoring the broad-based appeal of the IPO. These official subscription numbers serve as a more reliable indicator of investor demand compared to unofficial Grey Market Premium (GMP) figures.

*GMP figures are unofficial and may vary; exchange data and official subscription numbers are more reliable for assessing demand.

Participating in the IPO

Investors interested in subscribing to the Mangal Electrical Industries IPO can participate through the official Dhan Kirti IPO platform. It is crucial to complete your application before the subscription window officially closes on August 22, 2025. This presents a unique opportunity to invest in a company with a strong and established footing in the essential power infrastructure sector.

For a seamless application process and to stay updated on all further developments, please visit the official Dhan Kirti IPO platform.

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.