based in rajasthan Mangal Electrical Industries It is preparing to raise Rs 450 crore through its IPO (Initial Public Offering). For this, the company approached the Capital Market Regulator on December 24. SEBI Draft Red Herring Prospectus (DRHP) was filed with Securities and Exchange Board of India (SEBI). This IPO will issue completely new shares, that is, it will OFS (Offer for Sale) Will not be included. The amount raised will be completely used for the development and other purposes of the company.
Pre-IPO placement plan
Mangal Electrical Industries before IPO launch Pre-IPO Placement It is planning to raise up to Rs 90 crore through this. If this pre-IPO placement is successful, the size of the IPO will be reduced. To manage IPO successfully Systematics Corporate Services has been appointed as merchant banker.
Company Introduction and Products
Mangal Electrical Industries is based in Rajasthan and has five large production plants. company power infrastructure industry It is active in India and manufactures a variety of transformers and customized products. The company’s products include:
- Single-phase transformer:5 KVA Capacity.
- three-phase transformer: Medium power capacity up to 10 MVA.
company electrical substation to establish EPC services Also provides. Its products and services cater to the diverse needs of the power infrastructure sector.
Use of IPO proceeds
The company will use the funds raised from the IPO for the following purposes:
- repay the loan,
- Rs 96.03 crore from the IPO will be used to repay the existing debt of the company.
- As of November 15, 2024, the company had a total borrowing of Rs 209.05 crore.
- Facility Expansion and Civil Works,
- Rs 120 crore for expansion of Unit IV at Sikar (Rajasthan).
- This amount will also be used for civil works at the headquarters in Jaipur.
- working capital needs,
- The company will invest Rs 122 crore for working capital.
- general corporate objectives,
- The remaining amount will be used for general operations and development of the company.
financial position of the company
The details of financial position of Mangal Electrical Industries are as follows:
- The company earned a net profit of Rs 20.9 crore in FY 2024, compared to Rs 24.7 crore in the previous financial year. 15.3% decline Shows.
- Revenue increased by 27% during the same period and reached Rs 449.5 crore.
- In the April-June 2024 quarter:
- Revenue: Rs 247 crore.
- Net Profit: Rs 19.73 crore.
Why is IPO important?
The IPO of Mangal Electrical Industries presents a huge opportunity to attract investors in the power sector. The company’s focus is not only on product manufacturing but also on providing cutting-edge solutions in power infrastructure.
- The company’s continuously growing revenues and strong order book reflect its stability and growth potential.
- The company’s order book as of November 2024 stood at Rs 97.87 crore, proving the demand for its products and services.
Opportunities and Challenges
The funds raised through the IPO will be used to provide financial stability to the company and help it expand into new projects. However, the company faces challenges like tough competition in the market and financial pressure.
This initiative by Mangal Electrical Industries is not only an important step for its expansion, but also presents an attractive opportunity for investors.
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