Jaipur-based Mangal Electrical Industries files DRHP of Rs 450 crore for IPO

Mangal Electrical Industries is one of the leading manufacturers of wires and cables in India. The company's products are used in a variety of applications, including power transmission, distribution, and telecommunications.

Mangal Electrical Industries, a Jaipur-based electrical equipment manufacturer, has filed preliminary papers with capital markets regulator SEBI to raise Rs 450 crore through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth Rs 250 crore and an offer for sale (OFS) of 10,30,000 equity shares by promoter group entity Mangal Electrical Private. The net proceeds from the fresh issue will be used for debt repayment, funding incremental working capital requirements and general corporate purposes.

As of March 2023, the company had total debt of Rs 103.4 crore.

Mangal Electrical Industries is engaged in the manufacturing of a wide range of electrical products, including fans, switches, sockets, modular plates, wires and cables, switchgears, LED lighting products and pumps. The company sells its products under the "Mangal" brand through a network of over 1,000 distributors and 50,000 retailers across 25 states in India.

The company also exports its products to over 20 countries, including Nepal, Bangladesh, Sri Lanka, Kenya, Tanzania, Uganda, Zambia, Malawi, Mauritius, Suriname, Trinidad and Tobago, Guyana, Jamaica, Barbados, Bahamas, Turks and Caicos Islands, Cayman Islands, British Virgin Islands, Anguilla, Montserrat, Saint Kitts and Nevis, and Antigua and Barbuda.

In the financial year ended March 2023, Mangal Electrical Industries reported a net profit of Rs 49.2 crore on a total income of Rs 448.8 crore.

The company's shares will be listed on the BSE and the NSE.

IIFL Securities, JM Financial and SMC Capitals are the book running lead managers to the issue.