Mangal Electrical IPO review: ₹400 crore issue in power infrastructure sector. Subscription status, GMP, business model, and long-term investment outlook.
Mangal Electrical Industries Ltd., a Jaipur-based power infrastructure manufacturer, launched its ₹400 crore Initial Public Offering (IPO) on August 20, 2025, aiming to tap into India’s accelerating energy transition. Despite a modest 54% subscription on Day 1, analysts see long-term potential in the company’s integrated business model and sector tailwinds.
IPO Snapshot
| Parameter | Details |
| IPO Size | ₹400 crore |
| Price Band | ₹533–₹561 per share |
| Lot Size | 26 shares (₹13,858 minimum) |
| Issue Type | 100% Fresh Issue |
| Subscription Status | 54% on Day 1 |
| GMP (Grey Market Premium) | ₹30–₹35 (~6% upside) |
| Listing Date | August 28, 2025 (tentative) |
Business Model: Integrated Power Equipment Manufacturing
Mangal Electrical operates across four key verticals:
- CRGO Laminations & Cores: Backbone of transformer manufacturing; FY25 capacity utilization at 57%.
- Transformers: Ranging from 5 KVA to 10 MVA; 95% utilization signals strong demand.
- Oil-Immersed Circuit Breakers (ICB): Manufactured at Unit III; 80% utilization.
- Amorphous Cores: Energy-efficient materials aligned with green mandates; 59% utilization.
The company also offers EPC services for electrical substations and has approvals from PGCIL, NTPC, and NABL, underscoring its credibility in high-voltage infrastructure.
Use of IPO Proceeds
- Debt Reduction: ₹101.26 crore
- Capacity Expansion: ₹87.86 crore (Unit IV, Reengus)
- Working Capital Infusion: ₹122 crore
- General Corporate Purposes
This capital deployment reflects a classic IPO rationale deleveraging + expansion + liquidity, positioning Mangal Electrical for scalable growth.
Investment Outlook: Long-Term Value in Power Infrastructure
India’s power transmission sector is undergoing a transformation under schemes like RDSS and urban grid modernization. Mangal Electrical, with its vertically integrated model and high utilization rates, is well-placed to benefit from this momentum.
While Day 1 subscription was tepid, the Grey Market Premium (GMP) and sector fundamentals suggest steady long-term returns for patient investors.
Conclusion:
A Quiet Contender in India’s Power Story
A Quiet Contender in India’s Power Story
While Mangal Electrical IPO may not have made headlines with its Day 1 subscription numbers, its fundamentals tell a different story. With high utilization across product lines, strategic expansion plans, and approvals from top-tier clients like PGCIL and NTPC, the company is quietly positioning itself as a key player in India’s power infrastructure evolution.
For investors seeking long-term value in the energy and EPC sectors, Mangal Electrical offers a compelling case especially as India ramps up grid modernization and renewable integration. The modest Grey Market Premium (GMP) suggests a cautious listing, but the company’s operational depth and sector alignment make it worth watching beyond the debut.
Want to stay ahead of upcoming IPOs and read more such type of content? Subscribe to our newsletter for weekly IPO alerts, allotment updates, and expert analysis tailored for smart investors.
Want to stay ahead of upcoming IPOs and read more such type of content? Subscribe to our newsletter for weekly IPO alerts, allotment updates, and expert analysis tailored for smart investors.
