Mumbai, June 12 (IANS) Jaipur-based Mangal Electrical Industries has received final approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) worth Rs 450 crore.
While the IPO marks a major step forward for the company’s future expansion, its financial details for FY24 reveal a challenging year with rising costs and falling profits.
As per the draft red herring prospectus (DRHP) filed with SEBI, Mangal Electrical’s net profit dropped by around 15.32 per cent in the financial year ended March 31, 2024.
The company reported a profit of Rs 20.94 crore in FY24 compared to Rs 24.73 crore in the previous financial year (FY23).
The company’s total expenses surged by 30.49 per cent to Rs 424.02 crore in FY24, compared to Rs 324.94 crore in FY23.
This fall in profit came despite revenue growth. The company’s revenue from operations rose to Rs 449.48 crore in FY24, up from Rs 354.3 crore in FY23, marking an increase of about 26.86 per cent.
Total income also saw a similar growth of 26.36 per cent, reaching Rs 452.13 crore in FY24.
The IPO, which involves a fresh issue of shares with no offer-for-sale (OFS) component, will have a face value of Rs 10 per share.
Out of the Rs 450 crore to be raised, Mangal Electrical plans to use Rs 96.03 crore to repay or prepay certain borrowings.
Around Rs 120 crore will go towards capital expenditure, including the expansion of its Unit IV facility in Reengus, Rajasthan, and improvements at its Jaipur headquarters.
Additionally, Rs 122 crore will be used to meet working capital needs and other general corporate purposes.
Systematix Corporate Services Limited is the sole book-running lead manager for the IPO, and Bigshare Services Private Limited is the registrar.
The company’s shares are proposed to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
–IANS
pk/na
*Except for the headings & sub-headings, this story has not been edited by The enewstime.in and has been published from IANS feed.
