About the Company: Mangal Electrical Industries Ltd.
Mangal Electrical Industries Ltd. (MEIL) is a leading manufacturer of power and distribution transformers and their key components in India. Established in 2008 and based in Jaipur, Rajasthan, the company supplies high-quality transformers, CRGO slit coils, core assemblies, and related products to both government utilities (like PGCIL) and private sector energy producers inside and outside India. MEIL’s products are used to transmit and distribute electricity across India’s rapidly growing power sector. They operate five manufacturing units and pride themselves on in-house quality, advanced technology, and a strong national brand.
READ DRHP HERE:SEBI|PUBLIC ISSUES|MEIL
Mangal Electrical- IPO Details
| Detail | Information |
|---|---|
| Issue Price Range | ₹533 – ₹561 per share |
| Face Value | ₹10 per share |
| Minimum Lot (Retail) | 26 shares (₹13,858–₹14,586 approx) |
| Maximum Lot (Retail) | 13 lots (338 shares, approx ₹1,89,618) |
| Minimum Lot (HNI) | 14 lots (364 shares, approx ₹2,04,204) |
| Issue Type | Fresh Issue (No Offer For Sale) |
| Total Issue Size | ₹400 crore |
| Listing | NSE, BSE |
| Registrar | Bigshare Services Pvt. Ltd.CLICK HERE |
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| IPO Opens | 20th August 2025 |
| IPO Closes | 22nd August 2025 |
| Allotment Final | 25th August 2025 |
| Refunds Start | 26th August 2025 |
| Shares in Demat | 26th August 2025 |
| Listing Date | 28th August 2025 |
What’s the Money Used For?
- Expanding manufacturing capacity and upgrading technology.
- Meeting working capital needs.
- Investing in general business growth and operations.
Key Financial Metrics
| Metric | FY 2023 (₹ Cr.) | FY 2024 (₹ Cr.) | FY 2025 (₹ Cr.) |
|---|---|---|---|
| Revenue | 354.31 | 452.13 | 551.39 |
| Profit After Tax (PAT) | 24.74 | 20.95 | 47.31 |
| EBITDA | 42.63 | 81.84 | (not reported) |
| EBITDA Margin (%) | 9.45 | 14.91 | (highest) |
| PAT Margin (%) | 6.98 | 4.63 | 8.68 |
| Earnings Per Share (₹) | 12.07 | 10.22 | 22.25 |
| Net Worth (₹ Cr.) | 119.09 | 159.82 | 162.16 |
| Debt/Equity Ratio | Not stated | ~0.6 | ~0.57 |
| Return on Net Worth (%) | 20.05 | (not stated) | (strong) |
What do these numbers mean?
- Revenue: Total sales made by the company.
- EBITDA: Operating profit before loan interest and taxes.
- PAT: Final profit after all costs.
- EBITDA & PAT Margin: Profit as a percentage of sales.
- Net Worth: Value of the company after paying debts.
- Debt/Equity: How much the company owes compared to its value.
- Return on Net Worth: How well the company uses investor money.
Analysis
- Revenue and profit have grown strongly, especially in FY25.
- Both EBITDA and PAT margins have improved, showing better cost control and higher quality contracts.
- The company uses shareholder funds effectively and maintains a healthy balance of debt.
- MEIL’s net worth has increased, supporting ongoing expansion and projects.
- The jump in profit and margin in FY25 is mainly due to high-value contracts and efficiency gains.
Why Some Investors Like This Mainboard IPO
- Mangal Electrical is part of the fast-expanding Indian power sector, making “critical infrastructure” products.
- Works with both top government and private energy brands.
- Fresh money from the IPO will help it expand facilities and upgrade, not to pay off owners.
- Solid growth, improving profits, cost efficiencies, and expanding demand from new power projects.
- Modern plants and good R&D give it an edge for future government and private contracts.
Points That Need Caution
- Depends on the government as well as big private contracts—any slowdown or policy change can affect sales.
- Raw material prices (like steel) can be volatile and impact costs.
- High competition from both small and large transformer manufacturers.
- Delays or disruptions in power and infrastructure projects could hit orders.
- Some ongoing legal or operational risks typical of the engineering sector.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.