Jaipur-based Mangal Electrical Industries files DRHP for Rs 450 crore IPO

Upcoming IPO: Mangal Electrical Industries has filed the draft prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI) for a initial public offering (IPO).

The IPO is entirely a new issue of shares up to ₹450 crore without an offer for sale (OFS) component.

The company may consider a pre-IPO placement of up to ₹90 crores through preferential allotment, rights issue or any other method. After the successful completion of this pre-IPO placement, the size of the fresh issue will be reduced by the same amount.

Proceeds from the new issue will be used for several purposes. A total of ₹96.03 million will be allocated for the repayment or prepayment of some of the company’s outstanding loans; ₹120 million will be used for capital expenditure, which includes facility expansion at Unit IV in Reengus, Sikar district, Rajasthan and carrying out civil works at the company’s existing headquarters in Jaipur to optimize space utilization and increase storage capacity .

In addition, ₹122 million will be dedicated to finance the company’s working capital requirements and for general corporate purposes.

In the public offering, not more than 50% of the issue is allocated to qualified institutional buyers and at least 15% and 35% of the net offering is allocated to individual non-institutional and retail bidders, respectively.

About the company

Mangal Electrical Industries specializes in the marketing of CRGO and CRNO Coils and Amorphous Ribbons. Besides trading, Mangal Electrical manufactures transformers and customized solutions for the power infrastructure sector. Its transformer portfolio ranges from single-phase units with a capacity of 5 KVA to medium-power three-phase units with capacities up to 10 MVA. The company also offers EPC (Engineering, Procurement and Construction) services for the development of power stations, which specifically address the field of energy infrastructure.

The company markets its products under the well-known brand name Mangal Electrical, which has a strong reputation and brand recall value.

The company has five manufacturing units in Rajasthan with a total production capacity of 16,200 MT for CRGO, 7,50,000 KVA for transformers and 75,000 units for ICB and 2,400 MT for Amorphous units per annum.

As of November 30, 2024, Mangal Electrical Industries reported an order book of ₹97.87 crores. The company’s revenue from operations grew by 26.86%, up from ₹354.31 crore in FY 2023 to ₹449.48 crore in FY 2024. Profit after tax increased from ₹24.74 crore in FY 2023 to ₹20.95 crore in FY2024.

Systematix Corporate Services is the sole lead manager for this issue while Bigshare Services Private Limited is the registrar. The equity shares will be listed on the National Stock Exchange of India (NSE) and BSE.