Mangal Electrical Industries' shares debut below issue price of Rs 561

New Delhi: Shares of transformer components manufacturer Mangal Electrical Industries Ltd on Thursday made a tepid market debut, listing with a discount, against the issue price of Rs 561.

The stock listed at Rs 558, a decline of 0.53 per cent from the issue price on the BSE. Later, it recovered the early lost ground and hit the day's high of Rs 565, up 0.71 per cent.

At the NSE, the stock started trading at Rs 556, a discount of 0.89 per cent.

The company's market valuation stood at Rs 1,554.33 crore.

The initial public offer of Mangal Electrical Industries Ltd received 9.46 times subscription on the closing day of bidding on Friday last week.

The Initial Public Offer (IPO) -- entirely a fresh issue of shares worth Rs 400 crore -- had a price band of Rs 533-561 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, 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, the United Arab Emirates, Oman, the US, Italy and Nepal.