The preliminary public providing of Mangal Electrical Industries Ltd, a producer of transformer elements, was subscribed 1.98 occasions by the second day of bidding on Thursday.
The non-institutional buyers’ class noticed a subscription price of 4.20 occasions, whereas the allocation for Retail Particular person Buyers (RIIs) was subscribed 2.08 occasions. The portion reserved for Certified Institutional Consumers (QIBs) solely obtained a 13 % subscription.
On Tuesday, Mangal Electrical Industries raised ₹120 crore from its anchor buyers.
Mangal Electrical Industries specialises in processing transformer elements, together with transformer lamination, amorphous cores, coil assemblies, core assemblies, wound core, toroidal core, and oil-immersed circuit breakers.
Notable clients embrace authorities discoms and personal companies corresponding to Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd, and Western Electrotrans. The corporate has additionally exported its transformer elements to international locations together with the Netherlands, the United Arab Emirates, Oman, the U.S., Italy, and Nepal.
Mangal Electrical IPO GMP as we speak is +34. This means Mangal Electrical share value had been buying and selling at a premium of ₹34 within the gray market, based on investorgain.com.
Contemplating the higher finish of the IPO value band and the present premium within the gray market, the estimated itemizing value of Mangal Electrical share value was indicated at ₹595 apiece, which is 6.06% greater than the IPO value of ₹561.
Mangal Electrical IPO Overview
As per Canara Financial institution Securities, the corporate operates in an setting with excessive working capital necessities, importing roughly 80% of its CRGO metal, with uncooked supplies comprising round 40% of whole prices. The deliberate capital expenditure of ₹95–100 crore will likely be carried out over the subsequent 18 months, financed via the IPO, which totals ₹400 crore (together with ₹100 crore for capex, ₹100 crore for debt reimbursement, ₹100 crore for working capital, and ₹80 crore for common functions).
The EPC phase contributes 5–10% to the income as a part of its ahead integration technique. With a price-to-earnings ratio of 24.3x in comparison with the peer common of 26x, the present valuations appear honest. The brokerage advises subscribing for long-term advantages, though revenue margins are vulnerable to fluctuations in uncooked materials costs, as demonstrated in FY24 when prices elevated by 21%.
Mangal Electrical IPO particulars
The Mangal Electrical IPO, which is a contemporary subject of shares totaling ₹400 crore, will finish on Friday. Mangal Electrical IPO value band has been set at ₹533-561 per share.
The funds from the brand new share subject will likely be utilised for repaying debt, increasing the corporate’s facility positioned in Rajasthan, and assembly working capital wants for common company functions.
Systematix Company Companies serves as the only book-running lead supervisor, whereas Bigshare Companies is the registrar for the problem.
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to verify with licensed specialists earlier than making any funding choices.
