Mangal Electrical IPO: Details, GMP, Review & Strategies

Mangal Electrical IPO – Powering Up for the Market!

If the stock market had a high-voltage zone this August, it would be the Mangal Electrical IPO.
With a ₹400 crore fresh issue and a reputation for building top-notch transformers and electrical equipment, Mangal Electrical is ready to plug into investor interest in a big way.

Opening its subscription window on August 20, 2025, and closing on August 22, 2025, this IPO gives investors a chance to back a company that quite literally powers industries and cities. Listing is expected on August 28, 2025, with trading debut on both BSE and NSE.

Priced between ₹533 and ₹561 per share with a lot size of 26 shares, it’s accessible to retail investors from ₹14,586 onwards. The company’s consistent growth, expanding client base, and rising demand in the power sector make this IPO one to watch closely.

Will Mangal Electrical just light up the market, or will it send a full power surge through your portfolio?

Mangal Electrical IPO Details

Mangal Electrical Industries Ltd. is coming to the mainboard with a ₹400.00 crore IPO, entirely a fresh issue of 71,30,124 shares. The company manufactures transformers and key transformer components, supplies EPC for substations, and operates five facilities in Rajasthan—positioning it well to benefit from grid expansion and power sector capex.

IPO Snapshot

Particulars	Details
Issue Type	Bookbuilding IPO (Fresh Issue only)
Issue Size	₹400.00 crore
Price Band	₹533 – ₹561 per share
Face Value	₹10 per share
Lot Size	26 shares
Minimum Investment (Retail)	₹13,858 at floor price (₹533) / ₹14,586 at cap price (₹561)
Listing	BSE, NSE
Sale Type	Fresh Capital
Total Shares (Issue)	71,30,124
Pre-Issue Shares	2,05,00,000
Post-Issue Shares	2,76,30,124
QIB/NII/Retail	QIB ≤ 50% · NII ≥ 15% · Retail ≥ 35%
BRLM	Systematix Corporate Services Ltd.
Registrar	Bigshare Services Pvt. Ltd.

Important Dates (Tentative)

Event	Date
Issue Opens	Wed, Aug 20, 2025
Issue Closes	Fri, Aug 22, 2025
Allotment (Tentative)	Mon, Aug 25, 2025
Refunds Initiation	Tue, Aug 26, 2025
Credit to Demat	Tue, Aug 26, 2025
Listing Date	Thu, Aug 28, 2025
UPI Mandate Cut-off	5 PM, Aug 22, 2025

Objects of the Issue

Purpose	Amount (₹ Cr)
Repayment / Prepayment (in full or part) of certain outstanding borrowings of the Company	101.27
Capital Expenditure including civil works for expansion at Unit IV, Reengus (Sikar), Rajasthan	87.86
Funding Working Capital Requirements	122.00
General Corporate Purposes	Balance of Net Proceeds*

*The amount for General Corporate Purposes will be the remaining net proceeds after deducting the above allocations and issue-related expenses as detailed in the RHP.

Company Overview & Business Model – Mangal Electrical Industries Ltd.

Mangal Electrical Industries Ltd. has carved a strong niche in India’s power infrastructure ecosystem, offering a full spectrum of transformer solutions—from manufacturing critical transformer components to delivering turnkey substation projects.

The company’s expertise covers:

• Transformer components: laminations, CRGO slit coils, amorphous cores, coil & core assemblies, wound and toroidal cores, and oil-immersed circuit breakers (ICBs).
• Trading: CRGO and CRNO coils, amorphous ribbons.
• Manufacturing: Transformers from single-phase 5 KVA to three-phase 10 MVA.
• EPC services: End-to-end substation setup for the power sector.

With five advanced production facilities in Rajasthan, Mangal Electrical boasts impressive annual capacities:

• 16,200 MT – CRGO
• 10,22,500 KVA – Transformers
• 75,000 units – ICBs
• 2,400 MT – Amorphous units

The company’s growth story is powered by Rahul Mangal, Promoter, Chairman, and Managing Director, who brings 35+ years of experience in power distribution and technology. Since founding the company in 2008, he has expanded its footprint both domestically and internationally.
Aniketa Mangal, on the Board since 2022, contributes across finance, operations, marketing, and sales, leveraging his business development experience and an SP Jain postgraduate program in family-managed business.

Certifications & Quality Approvals

Mangal Electrical is NABL and PGCIL lab-approved, with ISO 9001:2015 and ISO 14001:2015 certifications. Key milestones include:

• PGCIL approval for transformer/reactor processing up to 765 kV class.
• NTPC approval for CRGO processing.
• Use of Brockhaus Messtechnik (Germany) machinery for high-efficiency outputs.

Customer Base – Domestic & Global

The company serves a diverse mix of clients, from government utilities like Ajmer Vidyut Vitran Nigam Limited to private players like Voltamp Transformers Limited. Exports span Netherlands, UAE, Oman, USA, Italy, and Nepal.

Domestic Revenue Distribution (₹ in lakhs):

Order Book Strength

As of June 30, 2025, Mangal Electrical’s order book stood at ₹ 29,419.78 lakh, reflecting strong revenue visibility.
Completed four major turnkey EPC projects for government utilities, reinforcing its credibility in delivering complex power infrastructure solutions.

India’s growing electricity demand and rapid substation capacity expansion create a favorable backdrop for transformer manufacturing. Mangal Electrical’s approvals, certifications, and capacity expansions position it to capture a larger market share in the years ahead.

Mangal Electrical IPO – Financial Performance

Company has shown impressive growth momentum over the past three years, underpinned by rising revenues and a sharp boost in profitability. Between FY24 and FY25, revenue grew by 22% while PAT jumped 126%, indicating stronger operational efficiency and cost control.

The company’s capital structure remains balanced with a Debt-to-Equity ratio of 0.92, leaving room for further expansion without over-leveraging. Market capitalization at the IPO price stands at ₹1,550.05 crore.

Financial Summary (₹ in Crore)

Period Ended	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	366.46	246.54	221.26
Total Income	551.39	452.13	357.81
Profit After Tax	47.31	20.95	24.74
EBITDA	81.84	42.63	44.42
Net Worth	162.16	114.99	93.97
Total Borrowing	149.12	92.12	96.64

Key Ratios (FY25)

Ratio	Value	Insight
ROE	29%	Strong shareholder return
ROCE	25.38%	Efficient capital utilization
RoNW	34.14%	Strong net worth profitability
Debt-to-Equity	0.92	Moderately leveraged balance sheet
PAT Margin	8.61%	Solid net profitability
EBITDA Margin	14.90%	Healthy operating performance

Verdict: With high double-digit return ratios and sustained revenue growth, Mangal Electrical is entering the market with strong fundamentals, a healthy balance sheet, and a profitability profile that compares well with industry peers.

Valuation & Peer Comparison

At the upper price band, Mangal Electrical IPO is valued at a P/E of 32.77 (post-issue) and a Price-to-Book (P/B) ratio of 7.09, indicating a premium valuation compared to book value, but justified by the company’s robust growth and high return ratios.

Valuation Metrics

Metric	Pre-IPO	Post-IPO
EPS (₹)	23.08	17.12
P/E (x)	24.31	32.77
Price-to-Book	–	7.09

Interpretation: While the P/E post-issue appears higher than industry median, the company’s strong earnings profile, superior RoNW of 20.05%, and consistent growth lend support to this premium.

Peer Comparison

Company Name	EPS (₹)	NAV/Share (₹)	P/E (x)	RoNW (%)
Mangal Electrical Industries Ltd.	23.08	79.10	32.77	20.05
Vilash Transcore Ltd.	14.58	117.68	38.99	15.27
Jay Bee Laminations Ltd.	12.31	65.42	35.26	24.11

Compared to peers, Mangal Electrical delivers higher EPS and better RoNW than most, while trading at a valuation range that suggests investor optimism about future earnings growth. Although its NAV is lower than Vilash Transcore, the company’s profitability advantage and growth trajectory could justify the IPO pricing.

Strengths & Risks

Strengths	Details
Strong Revenue & Profit Growth	Revenue up 22% and PAT up 126% in FY25 vs FY24, reflecting robust business momentum.
High Return Ratios	RoNW of 34.14% and ROE of 29% indicate efficient capital utilization and strong profitability.
Diversified Product Portfolio	Offers a wide range of electrical equipment and solutions catering to multiple sectors, reducing dependence on a single segment.
Established Market Presence	Long-standing relationships with reputed clients and suppliers enhance brand credibility.

Risks	Details
High Valuation Post-IPO	Post-issue P/E of 32.77 is above industry average, leaving less room for valuation re-rating.
Debt Load	Debt-to-equity ratio of 0.92 indicates moderate leverage; higher interest costs could impact margins.
Industry Cyclicality	Business is linked to power & infrastructure investment cycles, which can be impacted by economic slowdown.
Competitive Pressure	Presence of established players like Vilash Transcore and Jay Bee Laminations may affect pricing power.

Mangal Electrical IPO GMP (Grey Market Premium)

Currently, the Mangal Electrical IPO GMP has not yet started, indicating that there is no unofficial premium being traded in the grey market. Investors are still awaiting early sentiment cues from the market.

Mangal Electrical IPO GMP Trend

GMP Date	IPO Price (₹)	GMP	Estimated Listing Price (₹)	Estimated Profit*
14-08-2025	561.00	₹0	₹561 (0.00%)	₹0

Conclusion – View on Mangal Electrical IPO

The Mangal Electrical IPO offers a compelling mix of robust financial growth, improving profitability, and a strong position in the electrical equipment manufacturing space. Revenue has grown steadily, while PAT surged by an impressive 126% in FY25, showcasing operational efficiency and demand strength. However, the valuation is on the higher side post-IPO, which means the market is already pricing in a lot of optimism.

That said, the company’s rising return ratios (ROE 29%, RoNW 34.14%) and solid EBITDA margins make it an attractive play for both short-term momentum and long-term portfolio stability — provided it delivers on growth plans after listing.

Short-Term Strategy

From a listing gain perspective, investors should keep a close watch on GMP trends once they begin. If subscription numbers, especially from QIB and NII categories, remain strong in the final bidding days, the IPO could see healthy listing gains. Early movers can consider partial profit booking on listing day if sentiment is euphoric.

Long-Term Strategy

In the long run, Mangal Electrical’s growth prospects hinge on expanding capacity, tapping export markets, and capitalizing on India’s power infrastructure push. Long-term investors can hold post-listing, adding on dips, as the company operates in a sector with consistent demand visibility.

Allotment Strategy

Retail investors should apply in multiple retail accounts (family members) to improve allotment chances, given potential oversubscription. HNI/NII investors can consider leveraged applications if subscription momentum picks up sharply towards the close.

“Mangal Electrical IPO is like a high-voltage circuit — powerful if connected at the right time.”

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