IPO Structure & Timeline: Mangal Electrical Industries Ltd is launching its IPO via the book-building route to raise ₹400 crore, entirely through a fresh issue of 71.30 lakh equity shares. The IPO opens on August 20, 2025, and closes on August 22, 2025. Basis of allotment is likely on August 25, 2025, with proposed listing on both NSE and BSE on August 28, 2025.
Price Band & Investment Details
The price band has been set at ₹533–₹561 per share with a face value of ₹10. The lot size is 26 shares, pegging the minimum retail application at ₹13,858. Among non-institutional investors, the minimum bid is 14 lots (364 shares; ₹2,04,204) for Small NII and 69 lots (1,794 shares; ₹10,06,434) for Big NII. Systematix Corporate Services Ltd is the lead manager while Bigshare Services Pvt Ltd is the registrar.
Promoters & Shareholding Post Issue
Promoted by Rahul Mangal, Ashish Mangal, Saroj Mangal and Aniketa Mangal, the family holds 100% pre-IPO which will reduce to 74.19% post-issue.
Utilisation of Proceeds
- ₹101.27 crore for partial/full repayment of borrowings
- • ₹87.86 crore for expanding Unit IV facility at Reengus (Rajasthan)
- • ₹122 crore towards working capital
- • Balance for general corporate purposes
Business Overview
Mangal Electrical is a diversified power-equipment manufacturer supplying transformer components like CRGO slit coils, laminations, cores, assemblies and oil-immersed circuit breakers. It also manufactures transformers (5 KVA to 10 MVA), trades in CRGO/CRNO coils and provides EPC services for sub-station set-ups. It currently operates five plants in Rajasthan with annual capacities of 16,200 MT CRGO, 10,22,500 KVA transformers, 75,000 ICBs and 2,400 MT amorphous units – offering integration across the transformer value chain.
Industry Outlook
India’s transformer industry is valued at ₹35,390 crore in FY25, projected to grow at 8.1% CAGR to ₹52,298 crore by FY30, driven by power infrastructure roll-out, RDSS, renewable integration, smart-city expansion and industrial demand. Sub-station additions in the 400 kV category have grown from 30,560 MVA in FY19 to 40,540 MVA in FY25. Parallelly, demand for CRGO components is also expected to grow at 8.1% CAGR, from ₹7,080 crore in FY25 to ₹10,460 crore in FY30. Export opportunities are rising amid quality restrictions on imports and BIS mandates, favouring Indian manufacturers.
Strengths
- Strong promoter pedigree with 35+ years sector experience
- Integrated operations – backward in CRGO processing and forward in transformer/EPC
- Wide product portfolio and national/international client base (128 customers)
- Consistent profitability and order book visibility (₹294 crore as of June 30, 2025)
- Approvals from PGCIL, NABL & NTPC for higher-rating transformers
Weaknesses/Risks
- Raw material volatility (CRGO) with no long-term supply contracts
- High regional dependence – 71% revenue from Gujarat, Rajasthan & UP
- Top-10 clients contribute ~50% of revenue – client concentration risk
- Transformer vertical accounts for only 23% of FY25 revenue vs. broader industry focus
- Capital intensive nature may strain cash flows during expansions
Valuation Snapshot
At the upper price band ₹561, the company is valued at approximately ₹1,550 crore implying P/E of 32.8×, P/B of 2.02× and EV/EBITDA of 20.7× – appearing suitably priced against listed peers considering its integrated model, capacity expansion, and sector tailwinds.
Outlook
With India’s power sector expanding steadily and substation capacity targets remaining aggressive, transformer and component manufacturers are poised for strong structural demand. Mangal Electrical, equipped with approvals up to 765 kV, manufacturing scale and a healthy order book, is advantageously placed to capture these opportunities. IPO funds earmarked for reducing debt, capacity enhancement and working capital are likely to support medium-term growth and profitability.
Should You Apply?
While valuations are not cheap, the company’s integrated operations, strong relationships, niche approvals and expansion strategy furnish a long-term growth runway. Investors with a medium- to long-term horizon and risk appetite for the power T&D segment may consider subscribing to the IPO.
