Mangal Electrical IPO: Rs 450 Cr Fresh Issue, Facility Expansion

New Delhi, Dec 26 (PTI) Transformer components manufacturer Mangal Electrical Industries Ltd has filed draft papers with the capital markets regulator Sebi to raise Rs 450 crore through an Initial Public Offering (IPO).

The IPO of the Jaipur-based company is completely a fresh issue of shares with no Offer For Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP).

The company may consider raising Rs 90 crore through a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

As per the draft papers filed on Tuesday, proceeds from the fresh issue to the tune of Rs 122 crore will be used for funding working capital requirements of the company, Rs 120 crore for expanding the facility at Sikar, Rajasthan along with civil works at head office in Jaipur, Rajasthan, to increase storage capacity and Rs 96 crore for payment of debt, and general corporate purposes.

Mangal Electrical Industries is a processor of transformer components, transformer lamination, amorphous cores, coil assemblies and core assemblies, wound core, toroidal core, and oil-immersed circuit breakers.

As of November 30, 2024, Mangal Electrical Industries' order book stood at Rs 97.87 crore.

On the financial front, the company's revenue from operations increased by 26.86 per cent to Rs 449.48 crore in fiscal 2024 from Rs 354.31 crore in fiscal 2023. Profit after tax rose to Rs 24.74 crore in fiscal 2024 from Rs 20.95 crore in fiscal 2023.

For the six months ended September 2024, revenue from operations was at Rs 247.02 crore, and profit after tax stood at Rs 19.73 crore.

Systematix Corporate Services is the sole book-running lead manager and Bigshare Services is the registrar of the issue.