Mangal Electrical IPO GMP Today:
The Grey Market Premium (GMP) for the Mangal Electrical IPO is currently Rs 32 above the upper end of the price band set at Rs 561. This premium indicates the amount investors are willing to pay in the unofficial market ahead of the IPO listing. Based on the current GMP, the estimated listing price is around Rs 593, implying a modest gain of approximately 5.7% over the issue price. This points to a moderate level of investor interest in the stock ahead of its debut.
Mangal Electrical IPO Subscription Status:
As of 10:40 AM on the second day of bidding, the Mangal Electrical IPO had reached 77% overall subscription. Retail investors displayed strong interest, fully subscribing to their allotted portion at 100%, while the non-institutional investor (NII) category saw a subscription of 1.23 times. In contrast, qualified institutional buyers (QIBs) showed limited participation at this stage, subscribing to just 12% of their quota so far.
Mangal Electrical IPO Anchor Investors
Transformer components maker Mangal Electrical Industries secured Rs 120 crore from anchor investors on Tuesday, a day ahead of the launch of its initial public offering (IPO) for public subscription.
According to a circular published on the BSE website, the anchor investors in this round included Abakkus Diversified Alpha Funds, LC Pharos Multi Strategy Fund VCC, Societe Generale, Finavenue Capital Trust, Swyom India Alpha Fund, Sundaram Alternative Investment Trust, Imap India Capital Investment Trust, Sunrise Investment Trust, and Aarth AIF Growth Fund.
Details of Mangal Electrical IPO
The company allotted 21.39 lakh equity shares to institutional investors at the upper price band of Rs 561 per share, raising a total of Rs 120 crore from anchor investors.The IPO includes a fresh issue of shares worth Rs 400 crore and is set to open for public subscription from August 20 to August 22. The price band has been fixed between Rs 533 and Rs 561 per share.
Proceeds from the fresh issue will be used for debt repayment, expanding the manufacturing facility in Rajasthan, and funding working capital and other general corporate purposes.
Mangal Electrical Industries manufactures transformer components such as transformer laminations, amorphous cores, coil assemblies, core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers.
Its clients include government power distribution companies and private firms like Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd, and Western Electrotrans. The company also exports transformer components to countries including the Netherlands and the United Arab Emirates.
Systematix Corporate Services is the sole book-running lead manager for the issue, while Bigshare Services acts as the registrar.
Financials
Mangal Electrical Industries’ revenue grew by 22% to Rs 551 crore, while its profit after tax (PAT) surged by 126% to Rs 47 crore for the financial year ending March 31, 2025, compared to the previous year ending March 31, 2024.
Should you subscribe?
According to Anand Rathi’s research report, at the upper price band, the company is valued at a FY25 price-to-earnings (P/E) ratio of 32.8x, with a post-issue market capitalization of Rs 15,500 million. In recent years, India’s substation capacity has expanded significantly due to increasing electricity demand. This growth has created a favorable environment for transformer manufacturing, characterized by steady demand that supports effective production planning and operational efficiency. Considering these factors, the IPO is viewed as fully priced, and Anand Rathi recommends a “SUBSCRIBE – LONG TERM” rating.
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