Mangal Electrical Eyes Rs 450 Crore IPO to Power Growth

Mangal Electrical Industries Ltd, a top manufacturer of transformer components, plans to raise Rs 450 crore through an IPO. The funds will support working capital, facility expansion, debt repayment, and other purposes. Revenue and profits have shown significant growth, reflecting the company’s robust financial health.

Mangal Electrical Industries Ltd, specializing in transformer components, has submitted draft papers to the Securities and Exchange Board of India (Sebi) for a proposed Initial Public Offering (IPO) worth Rs 450 crore.

This offering is entirely a fresh issue of shares, with no Offer For Sale (OFS) included, as highlighted in the Draft Red Herring Prospectus (DRHP). The Jaipur-based company may, however, opt for a Rs 90 crore pre-IPO placement, which could reduce the fresh issue's size.

The funds are earmarked for various strategic uses: Rs 122 crore for working capital, Rs 120 crore for expanding its Sikar-based facilities, and Rs 96 crore for debt clearance and general corporate purposes. Financial indicators show a 26.86% rise in revenue to Rs 449.48 crore in fiscal 2024, alongside an increase in profit after tax to Rs 24.74 crore.

(With inputs from agencies.)