Customer base includes prominent government, private and municipal utilities.
MUMBAI, Dec 26 (The CONNECT) – Jaipur-based transformer component maker Mangal Electrical Industries Limited, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Rs 450 crore Initial Public Offering (IPO).
The IPO, with a face value of Rs 10, is a fresh issue of shares up to Rs 450 crore with no offer-for-sale component.
The company, in consultation with the BRLMS, may consider a further issue of specified securities, including through private placement, preferential allotment, rights issue, or any other method aggregating up to ₹90 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The proceeds from the fresh issue to the extent of Rs 96.03 crore for repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company, Rs 120 crore for Capital expenditure of the Company for expanding the facility at Unit IV situated Reengus, Sikar District, Rajasthan and civil works at its existing head office, Jaipur, Rajasthan to optimize space usage and increase storage capacity, Rs 122 crore for funding working capital requirements of the Company and general corporate purposes.
The Issue is being made through the book-building process, wherein not more than 50% of the Issue is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Mangal Electrical Industries Limited specializes in trading CRGO and CRNO coils and amorphous ribbons. The company markets its products under the well-recognized brand name Mangal Electrical, which enjoys a strong reputation and significant brand recall.
In addition to trading, Mangal Electrical manufactures transformers and customized solutions for the power infrastructure sector. Its transformer portfolio ranges from single-phase units with a 5 KVA capacity to medium-power three-phase units with capacities up to 10 MVA. The company also provides EPC (Engineering, Procurement, and Construction) services for setting up electrical substations, catering specifically to the power infrastructure domain.
The company operates five production facilities in Rajasthan, boasting an annual production capacity of 16,200 MT for CRGO, 750,000 KVA for transformers, 75,000 units for ICB, and 2,400 MT for amorphous units.
Mangal Electrical adheres to stringent quality standards, as evidenced by its NABL and PGCIL lab approvals, as well as NTPC approval for CRGO processing. The company employs advanced machinery, such as the Germany-based Brockhaus Messtechnik, for process and quality control, enabling high-efficiency outputs.
Its customer base includes prominent government and municipal utilities, such as Ajmer Vidyut Vitran Nigam Limited and Jaipur Vidyut Vitran Nigam Limited, alongside private energy producers like Voltamp Transformers Limited and Western Electrotrans Private Limited. While having a strong presence across India, Mangal Electrical has also exported transformer components to countries like the Netherlands, UAE, Oman, and the USA.
The company’s EPC projects focus exclusively on government and public sector undertakings. It has successfully executed and handed over four major turnkey projects to respective utilities.
Mangal Electrical Industries thrives under the leadership of its Promoter, Chairman, and Managing Director, Rahul Mangal, who brings over 35 years of experience in the power distribution and technology sectors. Since founding the company in 2008, he has steered its growth both domestically and internationally.
Additionally, Aniketa Mangal, a Board member since 2022, has contributed over eight years of expertise across finance, operations, marketing, and sales, further strengthening the company’s leadership team.
As of November 30, 2024, Mangal Electrical Industries’ order book stood at ₹ 97.87 crore.
The Company’s revenue from operations increased by 26.86% from ₹354.31 crore in Fiscal 2023 to ₹449.48 crore in Fiscal 2024. Profit after tax stood at ₹20.95 crore in Fiscal 2023 to ₹24.74 crore in Fiscal 2024.
For the six months ended September 30, 2024, revenue from operations stood at Rs 247.02 crore, and profit after tax stood at Rs 19.73 crore.
Systematix Corporate Services Limited is the sole book-running lead manager and Bigshare Services Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
