Recently, the Jaipur-based company, Mangal Electrical Industries, which has filed draft papers, received a SEBI nod to raise funds through an IPO. This IPO will be entirely a fresh issue of ₹450 crores with no offer-for-sale component.
The objective behind raising funds through an IPO is to utilize it for many purposes. Out of the amount, ₹96.03 crore will be utilized to settle the company’s previous borrowings. For various capital expenditures like growing the facility at Unit IV in Reengus, Sikar District, Rajasthan, ₹120 crore will be used. The company is planning to renovate its head office in Jaipur, expecting it to be more spacious than before. Out of the total, ₹122 crores of funds will be utilized to complete the company’s general corporate purposes.
Mangal Electrical Industries is one of the growing companies that manufactures transformer components and laminations. The company profile consists of various products such as CRGO slit coils, amorphous cores, coil assemblies and core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers. They are also known for trading CRGO and CRNO coils, as well as amorphous ribbons. Moreover, the company also manufactures customized products used in the power infrastructure industry. They manufacture transformers with capacities from small single-phase 5 KVA units to larger three-phase 10 MVA units. They also offer EPC services to build an electrical substation for the power infrastructure sector.
With a massive manufacturing capacity of 16,200 MT for CRGO, 7,50,000 KVA for transformers, 75,000 units for ICB, and (iv) 2,400 MT for amorphous units annually, Mangal Electrical Industries currently operates five production sites in Rajasthan.
In the Fiscal year 2024, the company raised ₹449 crore of revenue from operations. The Net profit after tax increased from 919 crore in FY2022 to 2,473.82 crore in FY2023.
The lead manager of this IPO is Systematix Corporate Services. The registrar of this issue is Bigshare Services Private Limited. The equity shares of this IPO will be listed on both the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
Following the SEBI’s approval, we can expect Mangal Electrical Industries to launch its IPO soon. This approval can be a big step towards the company’s growth and expansion.
Mangal Electrical Industries IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Mangal Electrical Industries Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹259.55 | ₹247.83 | ₹9.20 |
| 2023 | ₹357.81 | ₹324.94 | ₹24.74 |
| 2024 | ₹452.13 | ₹424.02 | ₹20.95 |
| September 2024 | ₹248.19 | ₹221.71 | ₹19.73 |
Mangal Electrical Industries IPO Valuation – FY2024
Mangal Electrical Industries IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹10.22 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 20.05% |
| Net Asset Value (NAV): | ₹56.09 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Vilash Transcore Limited | 12.82 | 38.99 | 15.57% | 88.53 | 313.95 Cr. |
| Jay Bee Lamination Limited | 10.75 | 35.26 | 36.42% | 34.90 | 303.50 Cr. |
Objects of the Issue
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by our Company
- Capital expenditure of our Company for expanding the facility at Unit IV situated Reengus, Sikar District, Rajasthan and civil works at our existing head office, Jaipur, Rajasthan to optimize space usage and increase storage capacity
- Funding working capital requirements of our Company
- General corporate purposes
IPO Lead Managers aka Merchant Bankers
- Systematix Corporate Services Limited
