Home / Business and Economy / 10 Lakh Shares Unlocked: Mangal Electrical Faces Test
10 Lakh Shares Unlocked: Mangal Electrical Faces Test
22 Nov
Summary
- Nearly ten lakh shares become available for trading soon.
- Shares have declined 24% since the company's market debut.
- September quarter profit fell 7% year-on-year.
Mangal Electrical Industries is nearing the end of its shareholder lock-in period, with an estimated ten lakh shares, or 4% of total outstanding shares, expected to become available for trading. This development comes as the company's stock has seen a substantial 24% plunge from its IPO price since its market debut on August 25.
The transformer component manufacturer had a challenging market entry, with shares listing at a discount. Anchor investors, including Abakkus Diversified Alpha Fund and Societe Generale, hold a significant portion of the shares that will soon be eligible for sale. The decision to sell or hold these shares now rests with these investors.
Further impacting market sentiment, Mangal Electrical Industries reported a 7% decrease in net profit for the September quarter, although total revenue saw a 17% increase year-on-year. Despite the stock's performance, some brokerages had recommended a 'Subscribe' rating for the issue, citing the company's comprehensive product range within the transformer value chain.
