Mangal Electrical IPO: Shares of Mangal Electrical will be listed on the stock exchange on Thursday, August 28. The company’s IPO was subscribed to 9.46 times during August 20–22. Its price was ₹ 533–561 per share. The company raised ₹ 120 crore from anchor investors before the public issue. Let us know from experts what to do on the listing of Mars Electrical. Also, what is being indicated from the gray market.
Mangal Electrical IPO Latest Gmp
The situation in the gray market of the IPO of Mars Electrical is continuously weakening. It went to a maximum of ₹ 595 level after the opening of the IPO. It was 6.06% listing gains according to the upper price band i.e. ₹ 561. However, there has been a steady decline in GMP after that. The Mangal Electrical IPO is the latest Gmp ₹ 556. Accordingly, investors may lose 0.89% on listing. However, the gray market is an unauthorized market. Prices continue to change here.
What is the opinion of experts?
Harshal Dasani, the business head of Invasst PMS, says that shares of Mangal Electrical can be held for the long term. He says that there is not much enthusiasm in the gray market about the stock of Mars Electrical. This appears to be cautious stance of investors despite strong subscription.
Dasani said that the company had obtained a revenue of about ₹ 1,100 crore in FY 2024. The Ebitda margin was about 12 percent and the ROCE was more than 18 percent. The value of the issue on the upper price band was 26–28 times the fY24 earnings, which is similar to the transformer and power ingestion sector.
He also said that the strong Capex cycle in the power and transmission sector can be beneficial for the company. However, investors should pay attention to the examination risk and valuation.
Mars Electrical Product Portfolio
Anand Rathi’s Head- Fundamental Research According to Narendra Solanki, Mangal Electrical is an integrated power infrastructure company. It processes transformer manufacturing and CRGO slit coil, lamination, amorphus core and oil-earned circuit breakers such as transformer components.
The company serves government utilities, PSUs, private power producers and global markets in Rajasthan with five Faculty and NTPC certification from NABL, PGCIL and NTPC. The company will use the amount received from the issue to repay the debt, expand the Rajasthan Faculty and meet other corporate needs. Under the ‘Mangal Electrical’ brand, it is located as a prominent player in high-capacity transformer solutions, up to 765 kV class.
Solanki said the company’s listing is likely to be around its issue price, as the existing gray market shows trend. The upper band has been valued at the price-to-aranings multiple 32.8 times of the issue FY25 and the post-insurance market capacity will be around ₹ 1,550 crore.
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