Mangal Electrical shares slip nearly 4 pc after weak debut

Mumbai, Aug 28 (IANS) Shares of transformer components maker Mangal Electrical Industries Limited made a weak debut in the stock market on Thursday as the company’s stock was listed at Rs 556 on the National Stock Exchange (NSE) and Rs 558 on Bombay Stock Exchange (BSE), nearly 1 per cent lower than the issue price of Rs 561 per share.

Soon after listing, the stock slipped further and touched an intra-day low of Rs 530 on the NSE, down over 4 percent from the issue price.

On the BSE, it also fell before recovering briefly to touch a day’s high of Rs 565 but later declined again.

Around 1:30 p.m., the shares of the company were trading at Rs 533.80, down by Rs 22.20 or 3.99 per cent on the NSE and at Rs 532.50, down by Rs 25.50 or 4.57 per cent on the BSE.

The company’s market value stood at Rs 1,554 crore on the listing day.

Mangal Electrical Industries had raised Rs 400 crore through its Initial Public Offer (IPO), which was subscribed nearly 10 times by investors.

The IPO was priced in the band of Rs 533–561 per share, with the entire issue being a fresh offer.

The funds will be used to repay debt, expand the company’s facility in Rajasthan, and meet working capital needs.

In the grey market, the stock was seen trading flat with no premium, hinting at a muted listing -- which matched the actual debut.

The company makes transformer components such as laminations, cores, coil assemblies, and circuit breakers.

Its clients include government power distribution companies like Ajmer Vidyut Vitran Nigam Limited and Jaipur Vidyut Vitran Nigam Limited, as well as private firms such as Voltamp Transformers Limited and Western Electrotrans.

Mangal Electrical has also exported its products to countries including the Netherlands, UAE, Oman, the US, Italy, and Nepal.

--IANS

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