After a slow start, Mangal Electrical’s initial public offer (IPO) closed with decent demand on Friday, August 22. The Mangal Electrical IPO had opened for subscription on August 20, with the issue sailing through on the second day of the book-building process.
Mangal Electrical IPO was booked 2.08 times at the end of the second day of subscription on Thursday.
Mangal Electrical IPO Subscription Status
Meanwhile, as of close on Friday, Mangal Electrical IPO was subscribed 9.46 times, with the issue garnering bids for 4,96,74,638 shares as against 52,53,301 shares on offer.
The retail portion was booked 4.84 times, the NII portion was subscribed 18.79 times, and the QIB portion received 10.54 times bids.
Now, with the closure of the public offer, Mangal Electrical IPO allotment date will be in focus. The same has been fixed as Monday, August 25.
Mangal Electrical IPO GMP
Mangal Electrical IPO grey market premium (GMP) has seen a significant decline today. According to data available, Mangal Electrical IPO GMP today is ₹15, more than half of the ₹34 GMP it was commanding a day ago.
At the current GMP and issue price, Mangal Electrical IPO listing price could be ₹576, a premium of just 3%.
GMP signals an investor’s willingness to offer more than the issue price for a company’s shares. However, it should not be the only metric guiding investment decisions. Investors should focus on fundamentals and their own risk appetite.
Mangal Electrical IPO Details
Mangal Electrical IPO is entirely a fresh issue of shares worth ₹400 crore. The price band for the offer was fixed at ₹533-561 per share.
The company plans to use the proceeds from the share sale to pay debt, expand the company’s facility situated in Rajasthan, and support working capital requirements for general corporate purposes.
The company boats of several marquee customers, including government discoms and private companies such as Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd and Western Electrotrans. It has exported its transformer components to the Netherlands, the United Arab Emirates, Oman, the US, Italy and Nepal.
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.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
