Mangal Electrical Industries Launches Rs 400 Crore IPO with Flat GMP
Mangal Electrical Industries Ltd., a Jaipur-based transformer manufacturer, is launching its IPO on August 20 to raise Rs 400 crore. The price band is set at Rs 533-561 per share, with the subscription period running from August 20-22. The company plans to list on BSE and NSE on August 28. The IPO consists entirely of fresh equity shares. Mangal Electrical's recent financials show significant growth, with total income increasing from Rs 452.13 crore in FY24 to Rs 551.39 crore in FY25, and profit after tax more than doubling from Rs 20.95 crore to Rs 47.31 crore. The funds will be used for debt repayment, facility expansion, and working capital requirements.
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Mangal Electrical Industries Ltd., a Jaipur-based transformer manufacturer, is set to open its Initial Public Offering (IPO) on August 20. The company aims to raise Rs 400 crore through this mainboard offering, which consists entirely of fresh equity shares.
IPO Details
- Price Band: Rs 533-561 per share
- Issue Size: Rs 400 crore
- Subscription Period: August 20-22, 2023
- Listing Date: August 28, 2023
- Listing Venues: BSE and NSE
Grey Market Premium
The grey market premium (GMP) for Mangal Electrical's IPO currently stands at Rs 0, suggesting a potentially flat listing at the upper price band of Rs 561.
Financial Performance
Mangal Electrical Industries has shown significant growth in its recent financial results:
| Fiscal Year | Total Income (Rs Crore) | Profit After Tax (Rs Crore) |
|---|---|---|
| FY25 | 551.39 | 47.31 |
| FY24 | 452.13 | 20.95 |
The company reported a substantial increase in both total income and profit after tax, with the latter more than doubling year-over-year.
Use of Proceeds
The funds raised through this IPO will be utilized for:
- Debt repayment
- Facility expansion
- Meeting working capital requirements
Investors interested in the Mangal Electrical Industries IPO can participate in the subscription process from August 20 to August 22. The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 28, 2023.
As with any investment decision, potential investors are advised to carefully review the company's prospectus and consider their financial goals before participating in the IPO.
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