Mangal Electrical Industries Ltd IPOMEIL

The IPO opens on 20 Aug 2025 & closes on 22 Aug 2025.

Mangal Electrical Industries Limited was originally formed as a partnership firm constituted under the Indian Partnership Act, 1932 on April 28, 1989 under the name and the style of 'Mangal Electrical Industries'. Thereafter, the partnership Firm was converted into a Private Limited Company as Mangal Electrical Industries Private Limited' dated April 1, 2008 issued by the RoC. Thereafter, the status of the Company was converted into Public Limited Company, consequent to which the name of the Company was changed to Mangal Electrical Industries Limited, and a fresh Certificate on Incorporate dated July 25, 2024 was issued by the RoC. The Company operate in the business of processing transformer components transformer lamination, CRGO slit coils, amorphous cores, coil assemblies and core assemblies, wound core, toroidal core and oil immersed circuit breakers. It trade CRGO and CRNO coils, as well as amorphous ribbons. At present, Company works 5 production facilities in Rajasthan with an aggregate production capacity for (i) 16,200 MT for CRGO, (ii) 10,22,500 KVA for transformers and (iii) 75,000 units for ICB and (iv) 2,400 MT for Amorphous units per annum. Apart from these, it manufacture transformers and customised products in the power infrastructure industry and further manufacture transformers with capacities ranging from single-phase 5 KVA to three-phase 10 MVA (medium power) units and also provide EPC services for setting up electrical sub-station, catering to the power infrastructure sector. In 2023, the entire business undertaking of Dynamic Powertech Private Limited (DPPL) got merged with the Company via going concern through the Scheme of Arrangement and became effective from April 1, 2023. In terms of consideration, share exchange ratio for the aforementioned Scheme was 12 fully paid-up Equity Shares of Rs 10 each of the Company for every 1 fully paid-up equity shares held in DPPL, to the shareholders of DPPL. Company raised Rs 4000 Cr through initial public offer by issuing 71,30,124 equity shares of Rs 10 by way of fresh issue in August 2025.

Mangal Electrical Industries Ltd IPO will close on 22 Aug 2025.

<ul><li>Promoters exhibit strong leadership and are supported by experienced senior management.</li><li>Exhibition of certain approvals available to selected market players.</li><li>Diversified base of customers.</li><li>Strong backward and forward integration which ensures operational efficiency.</li><li>Proven track record of consistent growth.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Rahul Mangal</td> <td>8422500</td> <td>41.09</td> <td>8422500</td> <td>30.48</td> </tr> <tr> <td>2</td> <td>Ashish Mangal</td> <td>4032500</td> <td>19.67</td> <td>4032500</td> <td>14.59</td> </tr> <tr> <td>3</td> <td>Saroj Mangal</td> <td>5815000</td> <td>28.37</td> <td>5815000</td> <td>21.05</td> </tr> <tr> <td>4</td> <td>Aniketa Mangal</td> <td>2100000</td> <td>10.24</td> <td>2100000</td> <td>7.6</td> </tr> <tr> <td>5</td> <td>Meenakshi Mangal</td> <td>32500</td> <td>0.16</td> <td>32500</td> <td>0.12</td> </tr> <tr> <td>6</td> <td>Shalu Mangal</td> <td>30000</td> <td>0.15</td> <td>30000</td> <td>0.11</td> </tr> <tr> <td>7</td> <td>Rahul Mangal HUF</td> <td>67500</td> <td>0.33</td> <td>67500</td> <td>0.24</td> </tr> </tbody> </table>

<ul><li>The costs of the raw materials that we use in our manufacturing process are subject to volatility due to factors beyond our control. Increases or fluctuations in raw material prices may have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>We are heavily dependent on the performance of the CRGO products and transformer product component. Any adverse changes in the conditions affecting the CRGO products and transformer products market can adversely impact our business, financial condition, results of operations, cash flows and prospects.</li><li>Any disruption, breakdown or shutdown of our manufacturing facilities or our original equipment manufacturer suppliers may have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>We do not have any direct hedging policy in place for mitigating raw material price fluctuations, particularly for CRGO and CRNO coils, which may adversely impact our business, financial condition, results of operations, and cash flows.</li><li>Our dependence on limited customers and any change in customer composition may adversely impact our business, financial condition, results of operations, and cash flows.</li><li>We depend significantly on contract labor and an inability to access contract labor at reasonable costs at our project sites may adversely affect our business.</li><li>We are subject to raw material price volatility, foreign exchange fluctuations which could adversely impact our business, results of operations, cash flows and financial condition.</li><li>We do not have definitive agreements for supply of products or raw material with our customers or suppliers. Failure to successfully leverage our supplier/customer relationships and network could adversely affect us.</li><li>Failure to protect and enforce our intellectual property rights, including trademarks and brand identity, could adversely impact our business, financial condition, and competitive position.</li><li>We depend on third parties for the supply of our raw materials and delivery of products and such third parties could fail to meet their obligations, which may have a material adverse effect on our business, results of operations, financial condition and cash flows.</li><li>Our business operations may be adversely impacted by high employee attrition rates and instances of manpower shortage. Attrition rates exceeded 10% in each of the last three Financial Year ended March 31, 2025, March 31, 2024 and March 31, 2023 prior to the current Financial Year.</li><li>We are exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials, export of products and our borrowings, which may adversely affect our results of operations, financial condition and cash flows.</li><li>Certain of our manufacturing properties are located on leasehold lands. If we are unable to renew existing leases or relocate our operations on commercially reasonable terms, there may be a material adverse effect on our business, financial condition and operations.</li><li>We are exposed to risks arising from credit terms extended to our customers.</li><li>Any delays in filing financial statements and convening annual general meetings may adversely affect our regulatory compliance and reputation</li><li>Any delays in filing GST returns may lead to regulatory penalties and may have an adverse impact on our financial and operational performance.</li><li>Any delays in filing EPF returns may lead to regulatory penalties and may have an adverse impact on our financial and operational performance.</li><li>Our manufacturing facilities have operated at relatively low levels of capacity utilisation due to structural, operational and external market factors, which may adversely impact our business, results of operations and financial condition.</li><li>We have in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.</li><li>Our Promoters and Promoter Group will continue to retain a majority shareholding in our Company after the Issue, which will allow them to exercise significant influence over us.</li><li>Significant dependence on revenue from the states of Rajasthan, Gujarat and Uttar Pradesh may adversely affect our business and results of operations.</li><li>We face significant competitive pressures in our business. Our inability to compete effectively would be detrimental to our business and prospects for future growth.</li><li>We have significant power and fuel requirements and any disruption to power sources could increase our production costs and adversely affect our results of operations.</li><li>Our object to successfully execute our proposed capital expenditure plan is contingent upon governmentled capital expenditure initiatives, and any delay or reduction in such initiatives may adversely affect our business, financial condition, results of operations, and cash flows.</li><li>Our failure to maintain optimum inventory levels could adversely affect our business, financial condition, results of operation and cash flow.</li><li>We may face difficulties in implementing our strategies including our expansion and diversification plans of entering new geographical areas, development and commercialization of new product</li><li>Our business is capital intensive. If we experience insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations, our business, financial condition and results of operations could be adversely affected.</li><li>If any of our projects are terminated prematurely, we may not receive payments due to us, which could adversely affect our business, financial condition and results of operation.</li><li>We are exposed to compliance and internal control related risks.</li><li>Regulatory restrictions on the import of CRGO material may adversely impact our business operations and cost structure.</li><li>We have certain contingent liabilities that have not been provided for in our financial statements, which, if they materialize, may adversely affect our business, results of operations and financial condition.</li><li>We have been subject to penalties for non-compliance with the provisions of the Companies Act, 2013. Consequently, we may be subject to regulatory actions or further penalties for any past or future noncompliances, which may adversely affect our business, financial condition and reputation.</li><li>There are factual inaccuracies in certain of our corporate records and corporate filings. Further, certain of our historical corporate and secretarial records are not traceable. We cannot assure you that regulatory proceedings or actions will not be initiated against us in the future which may impact our financial condition and reputation and we will not be subject to any penalty imposed by the competent regulatory authority in this regard.</li><li>Improper storage and handling of raw materials and finished products may cause damage to our inventory leading to an adverse effect on our business, results of operations and cash flows.</li><li>If we fail to qualify for, or win new contracts from project owners, our business, financial condition, results of operations, prospects and cash flows could be adversely affected.</li><li>Our financing agreements contain covenants that limit our flexibility in operating our business. If we are not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, our lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on our business and financial condition.</li><li>Our funding requirements and proposed deployment of the Net Proceeds are based primarily on management estimates and assumptions and our management will have broad discretion over the use of Net Proceeds. The utilisation of Net Proceeds may be subject to change based on various factors, some which are beyond our control. Further, any change or variation in the utilisation of Net Proceeds from the terms and conditions stated in this Red Herring Prospectus shall be subject to compliance requirements, including among other things, prior Shareholders' approval.</li><li>Our actual cost incurred in completing a project may vary substantially from the assumptions underlying our bid. We may be unable to recover all or some of the additional expenses incurred, which could adversely affect our financial condition, results of operation and cash flows.</li><li>Company, its Promoters and Directors are involved in various litigations. Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect our business, results of operations and financial condition.</li><li>Any inability to manage our employees or inventory could result in shortages or underutilization, which could adversely affect our profitability.</li><li>Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements and any delay in obtaining consent for our lenders may limit our ability to pursue our business and could adversely affect our business, financial condition, results of operations and cash flow.</li><li>For supply of certain raw material, we rely on suppliers. Inadequate or interrupted supply or sub-standard quality of raw material could adversely affect our reputation, business and results of operations.</li><li>We rely on our Promoters, Directors, Key Managerial Personnel and Senior Management, including other employees with technical expertise. The loss of or our inability to attract or retain such persons could materially adversely affect our business performance.</li><li>If we are unable to manage attrition and attract and retain skilled professionals, it may adversely affect our business prospects, reputation and future financial performance.</li><li>Our success depends on our ability to execute our growth strategies. If we are unable to sustain or manage our growth, our business, results of operations, cash flows and financial condition may be adversely affected.</li><li>We require various statutory and regulatory permits and approvals in the ordinary course of our business, and our failure to obtain, renew or maintain them in a timely manner may adversely affect our operations.</li><li>Our Promoter, Saroj Mangal is unable to trace her educational degrees/certificates and we have relied on undertakings furnished by her for such details of her profile.</li><li>Our Company is also exposed to certain industry related risks including but not limited to degradation of legacy infrastructure, high transmission and distribution losses, raw material price volatility, delay in transmission capex planned by government and grid stability and renewable energy integration.</li><li>Certain sections of this Red Herring Prospectus contain information from D&B Report, which has been commissioned and paid for by our Company and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.</li><li>Our insurance coverage may be inadequate, which could have an adverse effect on our financial condition and results of operations.</li><li>Our ability to pay dividends in the future will depend on our future cash flows, working capital requirements, capital expenditures and financial condition.</li><li>We are entitled to certain tax benefits. These tax benefits are available for a definite period of time, which, on expiry or if withdrawn prematurely, may adversely affect our business, financial condition, results of operations, cash flows and prospects.</li><li>Failure or disruption of our information technology systems may adversely affect our business, financial condition, results of operations, cash flows and prospects.</li><li>A downgrade in our credit ratings could materially adversely affect our business and financial condition and our ability to raise capital in the future.</li><li>We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance that may vary from any standard methodology that is applicable across the power infrastructure industry.</li><li>Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which investors may be more familiar with and consider material to their assessment of our financial condition.</li></ul>

The Issue type of Mangal Electrical Industries Ltd is Book Building.

The minimum application for shares of Mangal Electrical Industries Ltd is 26.

The total shares issue of Mangal Electrical Industries Ltd is 7130125.

Initial public offering of up to 71,30,124 equity shares of face value of Rs. 10/- each ("Equity Shares") of Mangal Electrical Industries Limited (the "Company" or the "Issuer") for cash at a price of Rs. 561/- per equity share, including a share premium of Rs. 551/- per equity share (the "Issue Price") aggregating up to Rs. 400.00 crores (the "Issue"). The issue shall constitute 25.81% of the post-issue paid-up equity share capital of the company.