Mangal Electrical Shares Fall 5.4% Intraday After Dull Stock Market Debut; Investors Disappointed

Mangal Electrical Industries Limited made its stock market debut on Thursday, August 28th, listing its shares on both BSE and NSE. However, despite heavy demand, the Mangal Electrical IPO listing opened slightly below expectations, disappointing some investors who were eyeing a strong premium after the massive subscription figures.

Mangal Electrical IPO subscription and issue details

The IPO was open for subscription between August 20 and August 22nd, with a price band of Rs. 533 to 561 per share. The company fixed the issue price at the upper end of Rs. 561. The public issue was subscribed 9.46 times overall, with high participation from qualified institutional buyers (QIBs) and retail investors.

Mangal Electrical IPO listing price and current performance

Despite the strong demand during subscription, the stock had a muted listing. On the debut day, the Mangal Electrical share price opened at Rs. 556 on NSE, down 0.89% from the IPO price, and Rs. 558 on BSE, down 0.53% from the IPO price. The stock, however, managed to recover slightly, touching an intraday high of Rs. 566 on NSE, giving some hope to investors.
As of 2:00 PM, Mangal Electrical shares were trading at Rs. 531.25, 5.4% lower than their listing price.

Use of IPO proceeds

Mangal Electrical Industries raised around Rs. 400 crore through its IPO. The funds will be used for repayment of certain borrowings, capital expenditure, including expansion of its Rajasthan facility, working capital needs and the rest for general corporate purposes.

About Mangal Electric Industries

Mangal Electrical Industries Limited is a major player in the electrical equipment space, manufacturing critical transformer components. The company has a strong presence in India's power infrastructure ecosystem, catering to a growing demand for efficient energy solutions. For the financial year FY25, the company reported impressive growth numbers. The revenue was at Rs. 551.39 crore, rising 22% YoY. The company's net profit jumped 126% YoY to Rs. 47.31 cr.