Mangal Electrical Industries Limited's initial public offering (IPO) kicked off with a tepid response on its first day of bidding, achieving a 2% subscription rate. The Rs 400 crore IPO, which opened for public subscription on August 18, has garnered interest primarily from retail investors.

Subscription Details

Grey Market Premium

The Grey Market Premium (GMP) for Mangal Electrical Industries stands at Rs 25 above the upper price band of Rs 561. This indicates an estimated listing price of Rs 586, suggesting a potential gain of 4.46% for investors.

Anchor Investment

Prior to the public offering, Mangal Electrical successfully raised Rs 120 crore from anchor investors. The shares were allotted at Rs 561 each to notable institutional investors, including:

• Abakkus Diversified Alpha Funds
• Societe Generale
• Other undisclosed investors

IPO Details

• Issue size: Rs 400 crore
• Price band: Rs 561 (upper band)
• Subscription period: August 18 to August 22, 2023

Utilization of Funds

The company plans to use the IPO proceeds for:

1. Debt repayment
2. Expansion of manufacturing facilities in Rajasthan
3. Meeting working capital requirements

Company Profile

Mangal Electrical Industries is a manufacturer of transformer components. The company's client base includes:

• Government power distribution companies
• Private firms

Additionally, the company has expanded its reach internationally, exporting its products to:

• Netherlands
• United Arab Emirates (UAE)

Analyst Recommendation

Anand Rathi, a financial services firm, has provided insights on the IPO:

• Valuation: The company is valued at a P/E ratio of 32.8x
• Recommendation: 'SUBSCRIBE – LONG TERM'
• Note: The analysts consider the IPO to be fully priced at current levels

Investors are advised to consider the long-term potential of the company while making their investment decisions. As with all IPOs, it's crucial to review the company's financials, growth prospects, and industry position before participating.

The IPO remains open for subscription until August 22, 2023. Interested investors should consult their financial advisors and review the company's red herring prospectus for comprehensive details before making an investment decision.

Mangal Electrical Industries, a prominent transformer components manufacturer, has successfully raised Rs 120 crore from anchor investors, setting the stage for its upcoming Initial Public Offering (IPO). The company allotted 21.39 lakh equity shares to institutional investors at Rs 561 per share, demonstrating strong interest in its public offering.

Anchor Investment Details

The anchor book saw participation from several notable institutional investors, including:

• Abakkus Diversified Alpha Funds
• LC Pharos Multi Strategy Fund VCC
• Societe Generale
• Other institutional investors

This pre-IPO placement indicates a positive sentiment towards Mangal Electrical Industries' market debut.

IPO Specifics

The IPO is scheduled to open for public subscription from August 20 to August 22. Key details of the offering include:

Utilization of Funds

The company plans to utilize the proceeds from the IPO for several strategic initiatives:

1. Debt repayment
2. Expansion of facilities in Rajasthan
3. Meeting working capital requirements

These allocations suggest a focus on strengthening the company's financial position and expanding its operational capabilities.

Company Overview

Mangal Electrical Industries has established itself as a significant player in the transformer components manufacturing sector. The company's client base includes:

• Government discoms
• Private companies

Additionally, Mangal Electrical Industries has a strong export presence, with its products reaching markets in:

• Netherlands
• United Arab Emirates (UAE)
• Oman
• United States of America (USA)
• Italy
• Nepal

This diverse geographical footprint underscores the company's global market reach and potential for further expansion.

Market Outlook

The successful anchor investment and the upcoming IPO reflect the growing interest in India's electrical equipment sector. As the country continues to invest in its power infrastructure, companies like Mangal Electrical Industries are well-positioned to capitalize on the increasing demand for transformer components.

Investors and market watchers will be closely monitoring the public subscription phase of the IPO, which could provide insights into market sentiment towards the electrical equipment manufacturing sector in India.

Note: Potential investors are advised to review the company's prospectus and consult with financial advisors before making investment decisions.