Mangal Electrical Industries garners Rs 120 cr from anchor investors

New Delhi, Aug 19 (PTI) Transformer components manufacturer Mangal Electrical Industries on Tuesday mobilised Rs 120 crore from anchor investors, just a day before its initial share-sale opening for public subscription.

The institutional investors who participated in the anchor round included Abakkus Diversified Alpha Funds, LC Pharos Multi Strategy Fund VCC, Societe Generale, Finavenue Capital Trust, Swyom India Alpha Fund, Sundaram Alternative Investment Trust, Imap India Capital Investment Trust, Sunrise Investment Trust and Aarth AIF Growth Fund, according to a circular uploaded on BSE's website.

As per the circular, the company has allotted 21.39 lakh equity shares to these institutional investors at Rs 561 apiece, taking the total fundraising to Rs 120 crore.

The IPO -- entirely a fresh issue of shares worth Rs 400 crore -- will open for public subscription on August 20 and conclude on August 22. The price band has been fixed at Rs 533 to Rs 561 per share.

Proceeds from the fresh issue will be used to pay debt, expand the company's facility situated in Rajasthan, and support working capital requirements for general corporate purposes.

Mangal Electrical Industries is a processor of transformer components, transformer lamination, amorphous cores, coil assemblies and core assemblies, wound core, toroidal core, and oil-immersed circuit breakers.

The company's customers include government discoms and private companies such as Ajmer Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Voltamp Transformers Ltd and Western Electrotrans. It has exported its transformer components to the Netherlands, United Arab Emirates, Oman, USA, Italy and Nepal.

Systematix Corporate Services is the sole book-running lead manager, and Bigshare Services is the registrar of the issue. PTI SP HVA