Welcome, everyone! This article provides a detailed look into the Mangal Electrical IPO. Today marks the final day to apply for this IPO. We will explore the subscription figures recorded around 1:30 PM, analyze the Grey Market Premium (GMP), and discuss if the subscription response aligns with expectations for a potential application.
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Mangal Electrical IPO Dates and Application Window
The Mangal Electrical IPO opened for applications on August 20th. August 21st was the second day, and today, August 2nd, is the final day to apply. For those applying through ASBA, ensure your application is submitted before your bank’s cut-off time, typically around 3 PM or 4 PM. If you are using net banking with a UPI ID, your mandate must be accepted by 5 PM for your application to be processed successfully.
Key Details of Mangal Electrical IPO
The Mangal Electrical IPO has a face value of ₹10 per share. The upper price band for the IPO is set at ₹561. To apply for a minimum lot, investors need to select 26 equity shares at the upper price band of ₹561.
The total issue size for the company is ₹400 Crores. The allocation of shares is as follows: 50% for Qualified Institutional Buyers (QIBs), 35% for Retail investors, and 15% for High Net Worth Individuals (HNIs). The company’s shares will be listed on both the BSE and NSE exchanges.
Mangal Electrical IPO Subscription Status (as of 1:30 PM)
The response to the Mangal Electrical IPO, particularly from the QIB category, has not met expectations so far.
- QIB Category: Subscribed 0.50 times. Ideally, this category should be subscribed approximately 5 to 10 times.
- HNI Category: Subscribed 9.68 times.
- Big HNI: Subscribed 9.12 times.
- Small HNI: Subscribed 10.81 times.
- Retail Investors Category: Subscribed 3.53 times.
The total subscription figure for the IPO stands at 3.98 times.
Based on the current response, applying to this IPO presents a higher risk and lower reward for investors planning for a safe investment. For risk-takers, if the QIB category manages to subscribe around 10 times by 3 PM, then considering an application might be an option. The current market conditions also show considerable volatility.
Grey Market Premium (GMP) Analysis
The Grey Market Premium for this IPO is currently trading at ₹23. Based on the cut-off price of ₹561, the implied listing price (as per the transcript’s calculation) is ₹561 with a GMP of ₹23. The chance of receiving a listing gain, according to this IPO, is around ₹500-₹600. The GMP indicates approximately a 4% listing gain.
The Grey Market Premium is not exceptional and has also shown a decline. Therefore, investors should analyze their risk thoroughly before planning to apply. Risk-takers might consider applying if they are looking at a 5-10% discount, but if less than a 5-10% listing gain is not acceptable, then avoiding this IPO could be a consideration.
What are your plans for the Mangal Electrical IPO? Are you observing it for study purposes or planning to apply? Let us know in the comments.
Jai Hind, Jai Bharat!
