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The entire IPO will be a fresh issue of shares, with no offer-for-sale component, meaning the company will retain all the proceeds. Before the IPO filing, Mangal Electrical may also raise up to ₹90 crore via a pre-IPO placement, which will be deducted from the fresh issue amount.
With five production facilities in Rajasthan, Mangal Electrical manufactures transformers and custom products for the power infrastructure sector. Its product range includes transformers with capacities from 5 KVA to 10 MVA and provides engineering, procurement, and construction (EPC) services for electrical substations. The company’s order book stood at Rs 97.87 crore as of November 2024, with clients such as Ajmer Vidyut Vitran Nigam, Jaipur Vidyut Vitran Nigam, Voltamp Transformers, and Western Electrotrans.
The company plans to allocate ₹96.03 crore from the IPO proceeds to repay existing debt, which stood at ₹209.05 crore as of November 15, 2024. ₹120 crore will be used to expand its Unit IV facility in Sikar, Rajasthan, and for civil works at its Jaipur head office to optimize space and increase storage capacity. ₹122 crore will be dedicated to working capital requirements, with the remaining funds allocated to general corporate purposes.
For the financial year 2024, Mangal Electrical reported a 15.3% decline in net profit to ₹20.9 crore, compared to ₹24.7 crore the previous year. However, revenue grew by nearly 27% to ₹449.5 crore. In the June 2024 quarter, the company reported a profit of ₹19.73 crore on revenue of ₹247 crore.
Systematix Corporate Services is the appointed merchant banker for the IPO.
