Mangal Electrical Industries' IPO Booked 54% On Day 1

The initial public offer of transformer components manufacturer Mangal Electrical Industries Ltd received 54% subscription on the first day of bidding on Wednesday.

The initial share sale got bids for 28,43,542 shares against 52,53,301 shares on offer, as per NSE data.

The category for non-institutional investors fetched 72% subscription, while the portion for Retail Individual Investors attracted 70% subscription. The Qualified Institutional Buyers quota got subscribed 12%.

Mangal Electrical Industries on Tuesday mobilised Rs 120 crore from anchor investors.

The IPO -- entirely a fresh issue of shares worth Rs 400 crore -- will conclude on Aug. 22. The price band has been fixed at Rs 533-561 per share.

Proceeds from the fresh issue will be used to pay debt, expand the company's facility situated in Rajasthan, and support working capital requirements for general corporate purposes.

Mangal Electrical Industries is a processor of transformer components, transformer lamination, amorphous cores, coil assemblies and core assemblies, wound core, toroidal core, and oil-immersed circuit breakers.

The company's customers include government discoms and private companies such as Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd and Western Electrotrans. It has exported its transformer components to the Netherlands, the United Arab Emirates, Oman, the US, Italy and Nepal.

Systematix Corporate Services is the sole book-running lead manager, and Bigshare Services is the registrar of the issue.