Mangal Electrical IPO fully booked on Day 2, NIIs lead demand; GMP at 5%

Mangal Electrical received bids for 6.15 million shares, against 5.25 million equity shares on offer, leading to a subscription of only 1.17 times

Mangal Electrical IPO Day 2 subscription status: The initial public offering (IPO) of transformer manufacturer Mangal Electrical Industries has entered the second day of bidding and has received a muted response from the investors so far. 

 

The mainline offering has received bids for 6.15 million shares, against 5.25 million equity shares on offer, leading to a subscription of only 1.17 times at 1 PM on Thursday, according to NSE data.

 

The retail investors subscribed about 1.4 times the quota reserved for them, and the non-institutional investors (NIIs) portion was booked only 2.02 times. However, the qualified institutional buyers (QIBs) subscribed to only 13 per cent.

 

 

Ahead of the issue, the company raised ₹120 crore from anchor investors. The company allocated 2.13 million equity shares to anchor investors at the upper price end of the price band of ₹533 to ₹561 per share, according to the exchange filing.

 

Some of the marquee institutions that participated in the anchor book include Abakkus Diversified Alpha Fund, LC Pharos Multi Strategy Fund VCC, Societe Generale, Finavenue Capital Trust, Swyom India Alpha Fund, Sundaram Alternative Investment Trust, Imap India Capital Investment Trust, Sunrise Investment Trust, Aarth AIF Growth Fund, and Steptrade Revolution Fund.  ALSO READ | Patel Retail IPO closes today: Subscription nears 40x, GMP up 19%

Mangal Electrical IPO GMP

On the second day of subscription, the unlisted shares of Mangal Electrical were trading at ₹591 per share, commanding a grey market premium (GMP) of only ₹30 or 5.35 per cent compared to the upper end price of ₹561, according to the sources tracking unofficial markets. 

Mangal Electrical IPO review

Analysts at Canara Bank Securities have recommended subscribing to the Mangal Electrical IPO public issue for the long-term perspective. Anand Rathi Research has also recommended that investors subscribe to the public issue for the long term, saying that the issue appears fully priced. READ MORE  ALSO READ | Gem Aromatics IPO closes today; subscription up 6x, GMP at 9%

Mangal Electrical IPO details

The ₹400 crores Mangal Electrical IPO comprises a fresh issue of 7.1 million equity shares and no offer for sale (OFS) component. The mainline issue will close for public subscription on Friday, August 22. The basis of allotment of shares is likely to be finalised on Monday, August 25. Mangal Electrical IPO will be listed on the bourses, BSE and NSE, tentatively on Thursday, August 28. 

 

A retail investor would need a minimum investment amount of ₹14,586 to bid for at least one lot or 26 shares at the upper price band.  Retail investors can bid for a maximum of 13 lots or 338 shares, amounting to ₹1,89,618.

 

Bigshare Services is the registrar of the issue. Systematix Corporate Services is the book-running lead manager. According to the RHP, the company proposes to utilise the net issue proceeds for the repayment/prepayment of debt, as well as for capital expenditure, including civil works, to expand the facility at Unit IV situated in Rajasthan to optimise space usage and increase storage capacity. The remaining funds will be used for working capital requirements and general corporate purposes.