Mangal Electrical Industries Limited (MEIL), established in 1990, is an ISO 9001:2015 certified company specializing in the manufacturing of transformer components and accessories. With over 50 years of industry experience, MEIL has become a leading supplier of CRGO (Cold Rolled Grain Oriented) products and transformers in India.
Mangal Electrical Industries aims to raise ₹450 crore through an initial public offering (IPO) to support its expansion and working capital requirements. The company submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on 24th December 2024.
The entire IPO will consist solely of a new issue of shares, with no part being an offer for sale, allowing the company to keep all the proceeds. Prior to the IPO, Mangal Electrical may also secure up to ₹90 crore from a pre-IPO placement, which will be subtracted from the total fresh issue amount. Systematix Corporate Services has been appointed as the merchant banker for this IPO.
With five production facilities located in Rajasthan, Mangal Electrical manufactures transformers and tailored products for the power infrastructure sector.
Their product line includes transformers ranging from 5 KVA to 10 MVA, and they also offer engineering, procurement, and construction (EPC) services for electrical substations. As of November 2024, the company’s order book amounted to ₹97.87 crore, with notable clients including Ajmer Vidyut Vitran Nigam, Jaipur Vidyut Vitran Nigam, Voltamp Transformers, and Western Electrotrans.
The company intends to utilise ₹96.03 crore from the proceeds of its IPO to pay off existing debt, which amounted to ₹209.05 crore as of 15 November 2024. An allocation of ₹120 crore will go towards expanding its Unit IV facility in Sikar, Rajasthan, and improving the civil infrastructure at its Jaipur headquarters to optimise space and enhance storage capacity.
Furthermore, ₹122 crore will be set aside for working capital needs, while the remaining funds will be directed towards general corporate expenses.
In the financial year 2024, Mangal Electrical reported a 15.3% decrease in net profit, falling to ₹20.9 crore from the previous year’s ₹24.7 crore. Despite this decline in profit, revenue surged by nearly 27%, reaching ₹449.5 crore. In the quarter ending June 2024, the company recorded a profit of ₹19.73 crore on revenue of ₹247 crore.
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