The Indian IPO market continues to buzz with new listings, and the latest entrant is Mangal Electrical Industries Ltd. (MEIL). The company, a key player in transformer components and power infrastructure solutions, launched its ₹400 crore IPO on August 20, 2025, with strong interest from analysts and anchor investors. But the big question for retail investors remains: Should you apply for this IPO?
📌 IPO Details at a Glance
| Particulars | Details |
|---|---|
| IPO Open Date | August 20, 2025 |
| IPO Close Date | August 22, 2025 |
| Price Band | ₹533 – ₹561 per share |
| Lot Size | 26 shares |
| Minimum Investment | ~₹13,858 – ₹14,586 (1 lot) |
| Issue Size | ₹400 crore (Fresh Issue) |
| Allotment Date | August 25, 2025 |
| Refunds & Credit | August 26, 2025 |
| Listing Date | August 28, 2025 (NSE & BSE) |
| Investor Quota | QIB – 50%, NII – 15%, Retail – 35% |
🏢 Company Overview
Founded in 2008, Mangal Electrical Industries Ltd. manufactures:
- Transformer components (CRGO cores, laminations, coil assemblies)
- Complete transformers
- EPC substation services
The company serves government utilities, private players, and exports to countries such as the UAE, USA, Netherlands, Oman, Italy, and Nepal. With India pushing hard on power grid expansion, railway electrification, and renewable energy integration, MEIL is positioned in a sector with strong growth tailwinds.
💰 Financial Performance
- Revenue Growth: ~22% YoY in FY2025
- PAT (Profit After Tax): Up ~126% in FY2025
- EBITDA Margin: ~14.9%
- EPS (Post IPO): ₹17.1
- P/E Ratio: ~32–33× at upper price band (₹561)
This indicates robust growth, though the valuation is not cheap.
🎯 Use of IPO Proceeds
The ₹400 crore raised will be deployed towards:
- Repayment/prepayment of borrowings
- Capacity expansion at Reengus, Rajasthan facility
- Working capital requirements
- General corporate purposes
This shows a clear focus on deleveraging and capacity scaling, which supports future growth.
🏦 Anchor Investors
MEIL raised ₹120 crore from anchor investors before the IPO launch. Some key names include:
- Abakkus Diversified Alpha Funds
- Societe Generale
- Sundaram AIF
- LC Pharos
🔎 Industry Outlook
The Indian power sector is in a transformational phase:
- Government schemes: National Grid, Green Energy Corridors, and Railway electrification
- Renewables integration: Solar & wind energy require grid stability – boosting transformer demand
- Infrastructure expansion: Ongoing urbanisation and industrial growth drive substation upgrades
MEIL, with its diversified product base, stands to benefit from this strong demand cycle.
📈 Analyst Recommendations
- Anand Rathi: Subscribe for long-term
- IIFL Securities: Subscribe (strong financials, growth strategies)
- SBI Securities: Subscribe (highlighting healthy ROE & ROCE)
- Retail Buzz (Reddit/Forums): Valuation looks fair at ~15–16× FY25 earnings, considering growth potential
⚖️ Risks to Consider
- Raw material price volatility (steel, CRGO sheets) could hit margins
- Client concentration risk – dependence on government contracts
- Execution risk – expansion and EPC projects must be delivered on time
📌 Final Verdict – Should You Invest?
The Mangal Electrical IPO comes at a time when India is heavily investing in power infrastructure. Strong financial growth, anchor investor confidence, and industry momentum make this a promising long-term bet.
However, the valuation is slightly on the higher side, and subscription numbers on Day 1 were not very aggressive, suggesting retail participation may be moderate.
👉 Ideal for investors with a 2–3 year horizon who want to ride India’s power sector growth. Short-term listing gains may be limited (5–8%), given the modest GMP.
📢 What Traders Need to Do
- Long-term investors: Can consider subscribing, especially if looking at renewable & power infra themes
- Short-term traders: Listing gains may be modest, so apply cautiously if only aiming for quick profit
- Existing power sector investors: This IPO can be a diversification play alongside players like Voltamp, Transformers & Rectifiers
Subscription
| Investor | 20 Aug 2025 | 21Aug 2025 | 22Aug 2025 |
|---|---|---|---|
| Anchor | 1 | ||
| QIB | 0.13 | ||
| Non-Institutional | 0.76 | ||
| BNII | 0.62 | ||
| SNII | 1.02 | ||
| Retail | 0.74 | ||
| Total | 0.57 |
GMP Trend:
| Date | GMP |
|---|---|
| 20 Aug 2025 | ₹33.00 (5.88%) |
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.
How to Check IPO Allotment Status:
Bigshare
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
NSE Website
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
BSE Webiste
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
📌 Stock Market Disclaimer
- Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
- The information provided on this platform is for educational and informational purposes only. It should not be considered as investment advice, stock recommendations, or financial guidance.
- ⚠️ Stock Market Investments
- Investing in equities, derivatives, mutual funds, and other financial instruments involves market risks, volatility, and the possibility of capital loss.
- Past performance of stocks or indices is not indicative of future returns.
- Always conduct your own research or consult a SEBI-registered financial advisor before making investment decisions.
- ⚠️ IPO (Initial Public Offerings)
- IPO details, issue size, subscription data, and allotment status shared here are based on publicly available information from company filings, stock exchanges, and merchant bankers.
- Investing in IPOs carries risks including listing volatility, business uncertainties, and sector performance dependency.
- Neither acceptance of applications nor allotment guarantees profits. Investors should evaluate their risk appetite before subscribing.
- ⚠️ GMP (Grey Market Premium)
- Grey Market Premium (GMP) is an unofficial and unregulated indicator of expected IPO listing price.
- GMP data is collected from market observers and informal trading circles; it does not have any legal or SEBI recognition.
- GMP values are highly speculative and may differ significantly from actual listing prices. Investors should not rely solely on GMP while taking investment decisions.
- ✅ General Advisory
- We do not provide any buy/sell/hold recommendations.
- Readers and investors are solely responsible for their investment actions and decisions.
- This platform, its authors, and affiliates are not liable for any direct or indirect financial loss arising from the use of this information.
- 🔒 Always invest responsibly and diversify your portfolio.
