Mangal Electrical Industries Gears Up for INR 450 Crore IPO Mangal Electrical Industries has taken a major step toward its expansion goals by filing public offer documents with the Securities and Exchange Board of India (SEBI) on 24 December 2024. The company plans to raise INR 450 crore through an Initial Public Offering (IPO) to fuel its capacity expansion and address working capital requirements.
Mangal Electrical Industries – IPO Structure and Fundraising Goals
The IPO will be entirely a fresh issue, ensuring that all proceeds directly benefit Mangal Electrical Industries. Notably, there is no offer-for-sale component involved. Additionally, the company may conduct a pre-IPO placement to raise INR 90 crore. Should this pre-IPO placement materialize, the fresh issue size will be reduced accordingly.
Utilization of IPO Proceeds
Mangal Electrical Industries has earmarked the funds raised through the IPO for key operational enhancements:
- Debt Repayment: INR 96.03 crore will be allocated to clear outstanding borrowings, which stood at INR 209.05 crore as of 15 November 2024.
- Facility Expansion: INR 120 crore is planned to expand its production facility at Unit IV in Sikar, Rajasthan. Funds will also support civil works at its Jaipur headquarters to improve space utilization and storage capacity.
- Working Capital Requirements: INR 122 crore will be dedicated to bolstering working capital.
- General Corporate Purposes: The remaining funds will be used for corporate activities to drive business growth.
Company Overview
Mangal Electrical Industries, headquartered in Rajasthan, is a leading manufacturer of transformer components and customized products for the power infrastructure sector. The company operates five production units across Rajasthan, leveraging its robust manufacturing capabilities to cater to diverse industry demands.
Key product offerings include:
- Transformers: Ranging from single-phase 5 KVA to three-phase 10 MVA models.
- Transformer Components: Products like CRGO slit coils and amorphous cores.
- EPC Services: Comprehensive engineering, procurement, and construction services for electrical substations.
With a reported order book of INR 97.87 crore as of November 2024, Mangal Electrical Industries serves prominent clients, including Ajmer Vidyut Vitran Nigam and private sector firms like Voltamp Transformers.
Financial Performance: Revenue Growth Amid Profit Decline
In fiscal year 2024, Mangal Electrical Industries posted a net profit of INR 20.9 crore, reflecting a 15.3% decrease from INR 24.7 crore in the prior year. However, revenue surged by 27% year-on-year, reaching INR 449.5 crore. For the quarter ending June 2024, the company reported a profit of INR 19.73 crore on revenues of INR 247 crore.
The filing of the DRHP represents a pivotal moment for Mangal Electrical Industries as it seeks to capitalize on growth opportunities in the power infrastructure sector. With clear plans for fund utilization and a solid foundation in manufacturing, the company is well-positioned to strengthen its market presence and operational capacity.
Conclusion
Mangal Electrical Industries’ IPO signals its commitment to growth and operational excellence. Investors can expect a strategic deployment of funds to drive efficiency, expand capacity, and fuel future growth. With its established market presence and solid revenue trajectory, the company is poised to make a significant impact in the competitive power infrastructure industry.  For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
