The Mangal Electrical Industries IPO closes today, August 22, 2025, marking the last opportunity for investors to subscribe to the issue. The ₹400 crore IPO consists entirely of a fresh issue of shares.
Subscription Status
As of the latest updates, the IPO has seen considerable interest. By the end of Day 2, the IPO was subscribed 1.98 times overall. The final subscription status as of August 22, 2025, shows the issue was subscribed 2.67 times. Non-Institutional Buyers (NII) have shown strong interest, subscribing 6 times their allotted quota. Retail investors also demonstrated enthusiasm, with their portion subscribed 2.70 times. In contrast, Qualified Institutional Buyers (QIBs) have been more cautious, with their portion subscribed only 0.14 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Mangal Electrical's IPO is ₹34 as of August 22, 2025. With the IPO price band fixed at ₹561, the GMP reflects a premium of approximately 6.06%, suggesting an estimated listing price of around ₹595. It's important to remember that the GMP is an unofficial indicator influenced by market sentiment and can be volatile. It doesn't guarantee the actual listing performance.
IPO Details
The IPO opened on August 20, 2025, with a price band of ₹533 to ₹561 per share. The minimum lot size is 26 shares, requiring a minimum investment of ₹13,858 for retail investors. The IPO's book-running lead manager is Systematix Corporate Services Ltd, and Bigshare Services Pvt. Ltd. is the registrar. The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date is August 28, 2025, and the allotment is expected to be finalized on August 25, 2025.
Utilization of Funds
Mangal Electrical Industries plans to utilize the proceeds from the fresh issue for several key purposes: * Repaying debt. * Expanding the company's manufacturing facility in Rajasthan. * Supporting working capital needs. * General corporate purposes.
Company Overview
Mangal Electrical Industries specializes in processing transformer components, including transformer laminations, amorphous cores, coil assemblies, and oil-immersed circuit breakers. The company also provides engineering, procurement, and construction (EPC) services. They have a diverse customer base of 128 clients, including both government and private sector entities. The company also exports its components to countries including the Netherlands, the United Arab Emirates, Oman, the U.S., Italy, and Nepal.
Financial Performance & Strengths
Mangal Electrical has demonstrated strong financial performance:
Concerns
Canara Bank Securities noted that the company operates in an environment with high working capital requirements and imports approximately 80% of its CRGO steel, with raw materials comprising around 40% of total costs.
Valuation
The IPO prices Mangal Electrical at a P/E of 24.3, which is in line with mid-sized manufacturing standards.
Recommendation
Anand Rathi has assigned a "subscribe" tag to the IPO, noting India's growing substation capacity and consistent demand for transformers.
