New Delhi, August 28 (HS): Shares of transformer manufacturer Mangal Electricals delivered a disappointing debut in the stock market today, dampening the enthusiasm of IPO investors.

The company had priced its IPO shares at ₹561 apiece. However, on listing, the stock opened marginally lower—at ₹558 on the BSE and ₹556 on the NSE. This meant investors were staring at immediate losses right from day one.

Buoyed briefly by buying support, the stock touched an intraday high of ₹565, but persistent selling pressure dragged shares down again. By the market close, Mangal Electricals slipped to ₹533.95, leaving IPO subscribers nursing a 4.82% loss on debut day.

The ₹400-crore IPO, which remained open for subscription between August 20–22, had received strong demand, being subscribed 9.95 times overall. The Qualified Institutional Buyers’ (QIB) quota was booked 11.09 times, Non-Institutional Investors (NIIs) segment saw a massive subscription at 19.78 times, while the retail portion registered 5.09 times demand. The offering comprised 71,30,124 fresh equity shares with a face value of ₹10 each. Proceeds are earmarked for debt reduction, working capital requirements, and general corporate purposes.

On the financial front, the company has shown mixed performance. According to its prospectus, net profit dropped from ₹24.74 crore in FY23 to ₹20.95 crore in FY24, before rebounding sharply to ₹47.31 crore in FY25. Meanwhile, revenues grew at a CAGR of over 11% during this period, reaching ₹551.39 crore by the end of FY25.

Debt, however, remained a concern—rising from ₹96.64 crore in FY23 to ₹92.12 crore in FY24, and further swelling to ₹149.12 crore by FY25-end.

Despite strong investor interest in its IPO, Mangal Electricals’ weak market debut raises questions about valuation comfort and near-term investor appetite.

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Hindusthan Samachar / Jun Sarkar