Mangal Electrical Industries gets Sebi's nod to launch Rs 450 crore IPO

Jaipur-based Mangal Electrical Industries has received final observation from the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) expected to raise Rs 450 crore. The IPO constitutes a fresh issue of shares, with no offer-for-sale component, and has a face value of Rs 10 per share.

A significant portion of the IPO proceeds, Rs 96.03 crore, will be allocated for repaying or prepaying certain outstanding borrowings. Additionally, about Rs 120 crore is earmarked for capital expenditure, particularly for expanding the facility at Unit IV in Reengus, Rajasthan, and improvements at the company's headquarters in Jaipur to optimize space and storage. Another Rs 122 crore is intended for funding working capital requirements and general corporate purposes.

Mangal Electrical Industries is engaged in the processing of transformer components, including lamination, slit coils, and core assemblies. The company also trades CRGO and CRNO coils, offering its products under the recognised brand name 'Mangal Electrical'. The firm manufactures transformers with capacities ranging from 5 KVA to 10 MVA and provides EPC services for electrical sub-stations.

The company operates five production facilities in Rajasthan, with capacities for 16,200 MT of CRGO, 750,000 KVA transformers, and 2,400 MT of amorphous units annually. Mangal Electrical is noted for its high-quality standards and advanced machinery, evidenced by its NABL and PGCIL lab approvals, and NTPC approval for CRGO processing.

Systematix Corporate Services Limited is serving as the sole book-running lead manager for the issue, while Bigshare Services Private Limited is appointed as the registrar. The equity shares are planned for listing on the National Stock Exchange of India Limited and BSE Limited.

Mangal Electrical boasts a strong domestic and international presence, supplying components to various prominent utilities and energy producers. Notably, it exports transformer components to countries like the Netherlands, UAE, Oman, and the USA, showcasing its global reach and reputation in the industry.

The IPO application process will soon commence, following SEBI's approval. This step marks a significant milestone for Mangal Electrical Industries as it seeks to leverage public investment to fuel its growth and operational expansion.

As the company prepares for its IPO, potential investors and stakeholders will be closely monitoring the developments and strategic objectives outlined in the IPO documentation. The forthcoming steps in the IPO process will be crucial for Mangal Electrical's growth trajectory.