Mangal Electrical Industries: A Lukewarm Market Debut

Shares of Mangal Electrical Industries Ltd had a lukewarm debut on Thursday, dropping nearly 5% against their issue price of Rs 561. Closing at Rs 533.95 on the BSE, the stock's initial performance was underwhelming despite an initial public offering (IPO) that had been oversubscribed 9.46 times.

The Rajasthan-based manufacturer listed its shares at Rs 558 on the BSE, a slight decline from the issue price. Throughout the day, stock prices fell further to Rs 527.30, and ultimately closed at Rs 533.95, marking a 4.82% decrease. Similarly on the NSE, shares opened at Rs 556 and ended the day at Rs 535.35, down 4.57% from the issue price.

Despite the stock's initial stumble, the IPO, completely a fresh issuance worth Rs 400 crore, received robust interest. Proceeds from the IPO are earmarked for debt repayment, expansion of the company's Rajasthan facilities, and to bolster working capital. Mangal Electrical Industries is noted for its exportation of transformer components to numerous international markets.

(With inputs from agencies.)