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Mangal Electrical Industries IPO Date, Price, Business Overview, Details
Mangal Electrical Industries Limited is coming up with its Initial Public Offering (IPO) in August 2025. The company has made a strong position in the Indian power sector by not only manufacturing transformers but also processing critical transformer components.
Mangal Electrical Industries IPO Review 2025.
Mangal Electrical Industries Limited is coming up with its Initial Public Offering (IPO) in August 2025. The company has made a strong position in the Indian power sector by not only manufacturing transformers but also processing critical transformer components. Established in 1989 as a partnership firm, it has now grown into a public limited company. Notably, Mangal Electrical Industries is among the few players approved by Power Grid Corporation of India Limited (PGCIL) to manufacture transformer components of the 765 kV class, a technology so powerful that it can light up an entire city at once.
Let’s take a detailed look at this IPO, including issue details, business overview, industry outlook, strengths, risks, peer comparison, financial analysis, and grey market premium.
IPO Details.
Issue Size: ₹400 crore (100% fresh issue)
IPO Open Date: Wednesday, August 20, 2025
IPO Close Date: Friday, August 22, 2025
Price Band: ₹533 – ₹561 per share
Lot Size: 26 shares
Allotment Date: August 25, 2025
Listing Date: August 28, 2025
Use of Funds:
₹11.27 crore for repayment of certain outstanding borrowings
₹87.86 crore for facility expansion and civil works at Ringas Unit IV in Rajasthan
₹122 crore for working capital requirements
Remaining funds for general corporate purposes
Business Overview.
Mangal Electrical Industries is engaged in processing transformer components such as:
Transformer laminations
CRGO slit coils
Amorphous cores
Coil and core assemblies
Oil immersed circuit breakers
The company also manufactures transformers ranging from single-phase 5 kVA to three-phase 10 MVA capacity. Additionally, it provides EPC services for setting up electrical substations.
The company has five manufacturing units located in Rajasthan, with an order book of ₹94.2 crore as of June 30, 2025.
Industry Context.
According to Dun & Bradstreet, the Indian transformer industry is witnessing rapid growth due to urbanization, industrialization, and increasing electricity demand.
Estimated market size of transformer industry in FY2025: ₹353.9 billion
Peak electricity demand expected to grow from 250 GW in FY2025 to 366 GW by FY2032
Energy demand to reach 2,472 billion units by FY2032
Government initiatives like Deen Dayal Upadhyay Gram Jyoti Yojana, Integrated Power Development Scheme, Revamped Distribution Sector Scheme, National Grid, One Nation One Grid, and Green Energy Corridor are expected to boost demand for transformers and power infrastructure.
Key Strengths
Experienced Promoters & Management – Promoter & MD Rahul Mangal has over 35 years of experience in the power infrastructure industry.
Approvals & Certifications – Approved by NABL, PGCIL (for 765 kV class), and NTPC for CRGO processing.
Diversified Customer Base – Clients include Siemens, BHEL, World Temp Oman Ltd., and Arab Trans Egypt.
Backward & Forward Integration – In-house procurement and processing of CRGO, Amorphous, and ICB raw materials ensure cost efficiency and quality control.
Consistent Growth – Revenue has grown from ₹354.31 crore in FY2023 to ₹549.42 crore in FY2025, with steady profitability.
Weaknesses & Risks
Raw Material Price Volatility – Heavy dependence on steel, aluminum, copper, and CRGO without strong hedging policies.
Revenue Dependence – Significant revenue comes from transformer manufacturing and CRGO products.
Low Capacity Utilization – FY2025 saw only 57% utilization of CRGO capacity and 59% of Amorphous cores.
Customer Concentration – Top 10 customers contributed ~50% of revenue in FY2025.
High Working Capital Needs – Working capital requirement of ₹26.15 crore and borrowings of ₹254.88 crore as of June 2025.
Geographical Revenue Concentration – About 70% of revenue comes from Rajasthan, Gujarat, and Uttar Pradesh.
Foreign Exchange Risk – 24.91% of raw materials imported, with 57% sourced from China.
Contingent Liabilities – Bank guarantees and letters of credit pose potential risks.
Peer Comparison
Listed peers: JB Laminations Ltd. and Vilas Transcore Ltd.
EBITDA Margin: 14.9% (higher than peers)
Net Profit Margin: 8.61% (higher than JB but slightly lower than Vilas)
ROE: 34.14% (superior to JB at 24.11% and Vilas at 15.27%)
Debt-to-Equity Ratio: Higher than peers, showing reliance on debt.
Working Capital Days: 131 days (longer cycle compared to peers).
Financial Analysis
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Revenue Growth: ₹354.3 crore in FY2023 → ₹449.48 crore in FY2024 → ₹549.42 crore in FY2025
EBITDA: ₹44.42 crore in FY2023 → ₹81.84 crore in FY2025
Profit After Tax: ₹24.73 crore in FY2023 → dipped to ₹20.94 crore in FY2024 → surged to ₹47.3 crore in FY2025
ROCE (FY2025): 25.38%
Debt-to-Equity Ratio (FY2025): 0.92 (expected to improve post-IPO)
Cash Flow (FY2025): Negative operating cash flow of ₹30.09 crore due to higher receivables and inventory.
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Grey Market Premium (GMP)
The IPO has generated some positive interest in the grey market, but investors must remember that GMP is speculative. Listing gains depend on subscription levels, market sentiment, and company performance. GMP should not be the only basis for investment decisions.
Conclusion
Mangal Electrical Industries Limited has shown strong revenue and profit growth, backed by an experienced management team, diversified customers, and operational efficiencies. However, risks such as raw material price fluctuations, customer dependence, high working capital needs, and debt levels should be carefully considered.
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