| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 533 to ₹ 561 | 26 | 20th Aug, 2025 –22nd Aug, 2025 | ₹400.00 Cr |
Mangal Electrical Industries Ltd
Mangal Electrical Industries Limited (MEIL) is engaged in processing transformer components, including transformer laminations, CRGO slit coils, amorphous cores, coil and core assemblies, wound and toroidal cores, and oil-immersed circuit breakers. The company also trades in CRGO and CRNO coils, as well as amorphous ribbons. In addition, it manufactures transformers ranging from single-phase 5 KVA to three-phase 10 MVA units and offers EPC services for setting up electrical substations for the power sector. The company operates five production facilities in Rajasthan with an aggregate annual capacity of 16,200 MT for CRGO processing, 10,22,500 KVA for transformers, 75,000 units for oil-immersed circuit breakers, and 2,400 MT for amorphous units. The company is NABL, PGCIL, and NTPC approved, with ISO 9001:2015 and ISO 14001:2015 certifications. The company serves a mix of government and municipal utilities, including Ajmer Vidyut Vitran Nigam and Jaipur Vidyut Vitran Nigam, as well as private players like Voltamp Transformers and Western Electrotrans. It has a pan-India presence and exports to markets such as the Netherlands, UAE, Oman, USA, Italy, and Nepal. In FY25, the company reported domestic revenue of Rs. 5,326.5 million, with the western region contributing the largest share at 61.4%, followed by the northern region at 23.5%, followed by the southern region at 13.9%, and the eastern region accounted for 1.2%. As on June 30, 2025, the company’s order book stood at Rs. 2,941.9 million, representing healthy portions of ongoing contracts across business segments.
Objective of the Mangal Electrical Industries Ltd IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company;
- Capital expenditure, including civil works for expanding the facility at Unit IV situated at Reengus, Sikar District, Rajasthan, to optimise space usage and increase storage capacity;
- Funding of working capital requirements; and
- General corporate purposes.
Rationale To Mangal Electrical Industries Ltd IPO
Integration across the value chain to drive efficiency and margins
A key differentiator for MEIL is its strong backward and forward integration. On the backward integration front, in-house processing of CRGO, amorphous materials, and ICB ensures consistent quality, supply chain stability, and cost control. On the forward integration side, the company leverages its transformer manufacturing capabilities and EPC services, creating a seamless value chain from raw material processing to project execution. This integration not only reduces dependence on external suppliers but also enhances operational efficiency, supports margin expansion, and strengthens customer stickiness through lifecycle support. Combined with regulatory approvals such as NABL, NTPC, and PGCIL (including 765 kV class), the company is effectively positioned to capture opportunities from India’s ongoing transmission capacity expansion. Planned capacity additions at its Rajasthan facilities will further enhance scalability, reinforcing its positioning as an efficient and fully integrated power infrastructure solutions provider.
Diversified customer base and product expansion to drive growth and sales resilience
The company’s diverse customer mix, spanning government utilities, industrial conglomerates, and private energy producers across India and global markets, provides revenue resilience and scalability. It has successfully built export presence in geographies such as the USA, UAE, and Europe, and aims to expand its presence by entering new markets while maintaining long-standing relationships with domestic clients. Looking ahead, the company plans to expand its product portfolio with innovative, high-efficiency transformer solutions aligned to renewable energy and infrastructure demand. In parallel, it is pursuing collaborations with CRGO mill suppliers to strengthen its raw material security and product performance. The recent PGCIL approval for 765 kV class manufacturing will further enhance its ability to take on larger, more complex projects.
Valuation of Mangal Electrical Industries Ltd IPO
MEIL is an integrated player in the power infrastructure sector, engaged in transformer component processing, transformer manufacturing up to 10 MVA, and EPC solutions for substations. The Indian transformer industry is estimated at Rs. 353.9 billion in FY25, with demand expected to accelerate further on the back of rising electricity consumption, renewable energy integration, and expansion of the power transmission and distribution network. Government-led initiatives such as the Revamped Distribution Sector Scheme, Green Energy Corridor, and One Nation-One Grid provide an enabling policy environment. With established approvals (PGCIL, NTPC, NABL), diversified clientele, strong order book visibility, and a growing export presence, the company is well-positioned to capitalise on this industry tailwind and sustain long-term growth. Financially, the company delivered a revenue CAGR of 24.5% over FY2023-FY25 period, alongside margin expansion (EBITDA from 12.5% to 14.9% and PAT from 7.0% to 8.6%). Despite a softer FY24, impacted by lower inventory levels and higher operating costs, performance rebounded strongly in FY25. Return ratios remain robust with ROE/ROCE at 29.2%/24.7%, while leverage has reduced with D/E declining from 1.0x to 0.9x. Moreover, around 25% of IPO proceeds are reserved for debt repayment, which should further strengthen the balance sheet and enhance profitability. In comparison to its peers, the company maintains a higher scale, while commanding better return ratios compared to them. On the upper price band, the issue is valued at a P/E ratio of 24.3x based on FY25 earnings, which is cheaper in comparison to its peers. Thus, considering the company’s strong growth prospects and favourable market positioning, we recommend a “SUBSCRIBE” rating for this issue.
What is the Mangal Electrical Industries Ltd IPO?
The initial public offer (IPO) of Mangal Electrical Limited offers an early investment opportunity in Mangal Electrical Ltd . A stock market investor can buy Mangal Electrical Ltd IPO shares by applying in IPO before All Mangal Electrical Ltd shares get listed at the stock exchanges. An investor could invest in Mangal Electrical Ltd IPO for short term listing gain or a long term.
How to apply for the Mangal Electrical Ltd IPO through StoxBox?
To apply for the Mangal Electrical Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Mangal Electrical Ltd IPO open?
Mangal Electrical Ltd IPO is opening on 19th Aug 2025. Apply Now
What is the lot size of the Mangal Electrical Ltd IPO?
The Lot Size of Mangal Electrical Limited IPO is 26 equity shares. Login to your account now.
When is the Mangal Electrical Ltd allotment date?
The allotment Date for Mangal Electrical Ltd IPO is 25th Aug 2025. Login to your account now.
When is the Mangal Electrical IPO listing date?
The listing Date for Mangal Electrical Ltd IPO is 28th Aug 2025. Login to your account now
What is the minimum investment required for the Mangal Electrical Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,586. Login to your account now
What is the maximum investment allowed for the Mangal Electrical Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,89,618. Login to your account now
What are the risks associated with investing in the Mangal Electrical Ltd IPO?
- Approximately 71% of MEIL’s revenue is concentrated in just three states; Gujarat, Rajasthan, and Uttar Pradesh. This high reliance on a few geographical markets introduces a degree of concentration risk.
- The cost of raw material highly influence the company’s operations, as they are subject to high volatility.
- The company is highly vulnerable to any disruption, breakdown or shutdown of its manufacturing facilities which are concentrated in Rajasthan.
When will the Mangal Electrical Ltd IPO shares be credited to my Demat account?
The Mangal Electrical Ltd IPO be credited to the account on allotment date which is 26th Aug 2025. Login to your account now
Where can I find the Mangal Electrical Limited IPO prospectus?
The prospectus of Mangal Electrical Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
