Mangal Electrical Industries IPO: A Comprehensive Overview

1. What Does the Company Do?
Mangal Electrical Industries Limited specializes in manufacturing critical transformer components such as laminations, CRGO slit coils, amorphous cores, and oil-immersed circuit breakers. Additionally, the company provides turnkey EPC (Engineering, Procurement, and Construction) services for electrical substations. Their business is focused on India’s power infrastructure sector, which has strong demand for transformers and related components.

2. Industry and Its Growth
The company operates in the power infrastructure and electrical equipment industry. The Indian transformer market is expected to grow at a CAGR of around 8.1% from FY25 to FY30, driven by increasing electricity demand, government electrification programs, and the expansion of renewable energy.

3. Promoters and Senior Management
The company is promoted by Rahul Mangal, who is the Chairman and Managing Director with over 35 years of experience in power distribution. The senior management team, including Executive Director Aniketa Mangal, brings strong expertise in operations, finance, and marketing, providing stable and visionary leadership.

4. Financial Performance
For FY25, the company reported revenue of over ₹549 crore, reflecting a 22% year-on-year growth. Profit After Tax (PAT) stood at approximately ₹47 crore, marking an impressive 126% increase. EBITDA margins have also improved, indicating better profitability and operational efficiency.

5. Peer Comparison
Compared to peers like Vilas Transcore and Jay Bee Laminations, which have revenues of around ₹353 crore and ₹367 crore respectively, Mangal Electrical leads with revenue exceeding ₹549 crore. It also shows stronger profitability, highlighting its efficient operations and solid market position.

6. Growth Prospects and Use of IPO Funds
The funds raised through the IPO will be used to expand manufacturing capacity, repay existing debt, and strengthen working capital. This will enable the company to scale operations and capitalize on the rising demand in the power sector.

7. Basic Details of the IPO
The IPO opened on August 20 and will close on August 22. The price band is ₹533 to ₹561 per share with a minimum lot size of 26 shares. The listing is expected on August 27 on both BSE and NSE. The total issue size is approximately ₹400 crore.

8. Final Verdict
This IPO is coming at a good valuation considering the company’s strong growth, experienced management, and position in a growing industry. Our advice is to apply for this IPO as it offers a promising opportunity to invest in India’s expanding power infrastructure sector.