Mangal Electrical IPO: Check IPO Date, Lot Size, Price & Details

About the Company

Mangal Electrical Industries Limited (MEIL), established in 1990, is a Jaipur-based manufacturer of transformer cores and related products that form an essential part of the power transmission and distribution (T&D) value chain. The company’s key offerings include CRGO laminated cores, CRGO slit coils, toroidal cores, stacked cores, and allied electrical products.

The company’s manufacturing facilities are located in Rajasthan and are equipped with slitting, cutting, annealing, and testing infrastructure. This allows MEIL to offer both standard and customized cores, catering to different transformer specifications. The company emphasizes stringent quality control, maintaining international standards for loss measurement, insulation, and performance of its cores.

Its customer base comprises transformer OEMs, EPC contractors, and state electricity boards, giving it exposure to India’s rapidly expanding power infrastructure sector. Additionally, MEIL has made inroads into export markets, reflecting its ability to compete globally. The company has gradually reduced its debt burden, improved working capital efficiency, and strengthened profitability metrics over the last three years, aligning itself with the growth in the T&D sector.

IPO Details:

Objectives of Issue:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company
• Capital expenditure including civil works of the Company for expanding the facility at Unit IV situated at Reengus Sikar District, Rajasthan
• Funding working capital requirements of the Company
• General Corporate Purposes

Key Strengths:

• Integrated Manufacturing with Technical Expertise
  MEIL operates manufacturing facilities that cover the entire value chain — from slitting imported CRGO steel, cutting, annealing, to final core assembly and testing. This level of vertical integration not only ensures better cost management and operational efficiency but also provides superior control over product quality. By eliminating dependence on external processing units, MEIL minimizes supply chain risks and delivery delays. Its in-house testing infrastructure allows it to adhere to stringent technical specifications, ensuring compliance with transformer manufacturers’ requirements. This integrated structure makes MEIL a reliable partner for OEMs, offering consistency in product performance and faster turnaround times.
• Diverse Product Portfolio and Customization Capabilities
  The company’s product range spans laminated cores, toroidal cores, slit coils, stacked cores, and other CRGO-based solutions. This diversity enables MEIL to serve transformers of varied sizes and specifications, catering to both low-voltage distribution transformers and higher-rating power transformers. A critical differentiator is its ability to offer customized cores tailored to specific transformer designs, which increases customer reliance and switching costs. Since transformer manufacturers prefer suppliers who can adapt to design variations quickly, MEIL’s engineering and customization capabilities strengthen its market positioning. By addressing both mass demand and niche requirements, MEIL reduces dependence on any single product line, thereby stabilizing revenues.
• Well Diversified Customer Base- MEIL’s client mix spans private transformer OEMs, EPC contractors, and state electricity boards. Unlike smaller players dependent on a handful of customers, MEIL has consciously built a portfolio that spreads risk across multiple industries and geographies. Its ability to serve reputed clients enhances its credibility, and strong repeat business from these customers indicates high satisfaction levels. Importantly, catering to state electricity boards and government-backed projects provides a stable demand base, as these entities continue to invest in grid strengthening and rural electrification. This broad base reduces overexposure to any single customer or sector, ensuring resilience against cyclical fluctuations in transformer demand.

Risks:

• Raw Material Dependency on CRGO Imports- MEIL’s core raw material — Cold Rolled Grain Oriented (CRGO) electrical steel — is not manufactured in India and is imported primarily from global suppliers. This exposes the company to risks such as international price volatility, supply shortages, import duties, and currency fluctuations. Since raw materials constitute a significant portion of total costs, any sharp rise in CRGO prices could compress margins, especially if costs cannot be passed on to customers. Additionally, global trade disruptions, geopolitical tensions, or changes in import policies could affect availability. Hence, MEIL’s profitability remains highly sensitive to raw material sourcing dynamics beyond its direct control.
• Working Capital Intensive Business Model- The company’s operations are inherently working capital heavy, requiring it to maintain high levels of raw material inventory to ensure uninterrupted supply. Moreover, transformer manufacturers and utilities often demand extended credit periods, resulting in large receivables on MEIL’s balance sheet. This creates a mismatch between cash inflows and outflows, potentially straining liquidity. While the IPO proceeds will partially address these requirements, sustained growth could again increase working capital needs. If MEIL is unable to efficiently manage its working capital cycle, it may face higher reliance on short-term borrowings, which would increase interest costs and weigh on profitability.
• Customer Concentration Risk - Although MEIL has diversified its customer base over the years, a significant share of its revenue is still derived from a few key transformer OEMs and EPC clients. The loss of even one large customer, whether due to pricing, quality issues, or strategic realignment, could materially impact financial performance. In industries like transformer manufacturing, where approved vendor lists are crucial, replacing lost business is not immediate. Customer concentration also gives large buyers bargaining power, potentially leading to tighter margins. Thus, while MEIL has made progress in diversification, revenue dependency on a few clients continues to be a material risk factor.

Financial Snapshot:

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