Mangal Electrical Industries (MEIL), a leading transformer and power equipment manufacturer, made its stock market debut on Thursday, 28th August 2025, listing marginally below the issue price. The listing follows a highly successful IPO that was oversubscribed nearly ten times, reflecting strong investor confidence across institutional and retail segments.
Listing Performance
Mangal Electrical shares opened at ₹556 on the National Stock Exchange (NSE) and ₹558 on the Bombay Stock Exchange (BSE), a slight discount of 0.9% to the issue price of ₹561. Despite the small decline, the IPO demonstrated robust demand, attracting substantial participation from qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors alike.
The IPO, which ran from 20–22 August 2025, raised ₹400 crore and witnessed an overall subscription nearly ten times the shares on offer. The QIB portion was oversubscribed 11.09 times, the NII quota saw bids 19.78 times, and the retail segment recorded 5.09 times subscription.
Objectives of the IPO
Mangal Electrical intends to utilise the proceeds for partial or full repayment of certain outstanding borrowings, capital expenditure including civil works for expanding its Unit IV facility in Reengus, Sikar district, Rajasthan, working capital needs, and other general corporate purposes. These investments are expected to support operational efficiency and strengthen the company’s market position.
Company Background and Strengths
Founded in 2008, Mangal Electrical Industries specialises in transformers for electricity distribution and transmission. Its product portfolio includes CRGO coils, amorphous cores, coil assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers. The company operates five manufacturing units in Rajasthan and also undertakes EPC projects for electrical substations.
The “Mangal Electrical” brand is well recognised in the industry, underpinned by strong backward and forward integration, ensuring cost efficiency and quality control. Expansion plans include high-voltage (132 KV–200 MVA), inverter-duty, and dry-type transformers, along with enhanced backward integration through in-house CRGO processing and tank fabrication. Work on the Unit IV expansion is set to commence in phases from January 2026.
Financial Performance
Mangal Electrical Industries delivered strong financial results in FY25, with revenue rising 22% year-on-year to ₹551.39 crore. Profit after tax more than doubled to ₹47.31 crore from ₹20.95 crore in FY24. The company also reported robust returns, with Return on Net Worth (RoNW) at 34.14% in FY25, compared to 20.05% in FY24, while Return on Capital Employed (RoCE) stood at 25.38%, up from 19.92% the previous year.
Conclusion
The Mangal Electrical IPO listing reflects strong investor confidence and demonstrates the company’s growth trajectory in India’s power equipment sector. With robust financial performance, a diversified product portfolio, and strategic expansion plans, Mangal Electrical is poised to strengthen its market presence and operational capabilities in the coming years.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
Rate this article
×
