MV Electrosystems IPO Day 2: The Madhuri Madhusudhan Kela-backed initial public offering (IPO) of MV Electrosystems opened for subscription on Wednesday, July 30, and will remain open until Monday, August 3. The company has fixed the price band for the issue at ₹400-425 per share.
According to the IPO schedule, the basis of allotment is expected to be finalised on Tuesday, August 4. Shares are likely to be credited to the demat accounts of successful applicants on Wednesday, August 5, while refunds to unsuccessful bidders will be initiated on the same day. The shares are tentatively scheduled to debut on the BSE and NSE on Thursday, August 6.
MV Electrosystems IPO GMP Today
Investor sentiment toward the IPO is very strong, as its grey market premium (GMP) is ₹125 today. This suggests that the stock was likely to debut at ₹550, a premium of 29.41% to IPO price.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
MV Electrosystems IPO subscription status
The issue was subscribed 3.87 times by the end of Day 1. The Day 2 subscription will start at 10 am.
MV Electrosystems IPO: Apply or not?
Brokerages have given mixed recommendations on the MV Electrosystems IPO.
SBI Securities said MV Electrosystems is well positioned to benefit from India’s railway infrastructure transition through its indigenous in-house design and development of 3-Phase Propulsion Equipment. The brokerage believes the demand for propulsion equipment will remain strong as Indian Railways continues its modernisation.
“While the company reported a net loss of around ₹13 crore in FY26, it remains a favorable candidate for turnaround given its robust executable order book of around ₹922 crore for Propulsion Equipment (as of Jun’26), combined with the receipt of approval from CLW. Additionally, the 5-year procurement estimation of Propulsion Equipment by Indian Railways (around ₹19,797 crore) appears to be a suitable TAM for the company,” SBI Securities said.
The brokerage added that deployment of IPO proceeds towards working capital is expected to improve performance from 2HFY27, with the company targeting an increase in monthly propulsion system production from 20 sets to around 50 sets. It has recommended investors subscribe to the issue for the long term.
Swastika Investmart, however, has maintained an ‘Avoid’ rating. The brokerage highlighted that FY26 revenue declined around 21% YoY and the company reported a net loss of ₹12.6 crore. It also flagged related-party exposure through promoter loans and transactions. Swastika Investmart said traditional valuation metrics such as the P/E ratio have limited relevance for a loss-making company and believes the investment case is execution-driven, requiring sustained revenue growth and margin improvement. It added that risk-averse investors may prefer to wait for operational consistency over the next few quarters before taking exposure.
MV Electrosystems IPO Details
The IPO is a fresh issue of equity shares aggregating up to ₹290 crore, with no Offer for Sale (OFS) component. As a result, the entire proceeds from the public issue will accrue to the company and will be used to support its expansion plans and funding requirements.
The company intends to utilise ₹180 crore from the net issue proceeds to meet its long-term working capital requirements. It has also earmarked ₹21 crore for research, design and development of new power electronic equipment, while the remaining funds will be deployed for general corporate purposes.
MV Electrosystems is promoted by Mohit Vohra, Amit Dhawan, Sumit Dhawan, Rahul Dhawan, Sonali Dhawan and Ramendra Pratap Singh, who will continue to manage the company after its listing.
Notably, ace investor Madhuri Madhusudan Kela held around a 5.6% stake in the company at the time of filing the Draft Red Herring Prospectus (DRHP), making MV Electrosystems one of the few upcoming IPOs backed by a prominent public market investor.
Under the SEBI-prescribed allocation, up to 75% of the issue has been reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs) and the remaining 10% for Retail Individual Investors (RIIs). The minimum bid size is 34 shares, requiring a minimum investment of ₹14,450 for retail investors at the upper end of the price band.
Sundae Capital Advisors Pvt. Ltd. is the book-running lead manager to the issue, while KFin Technologies Ltd. has been appointed as the registrar.
About MV Electrosystems
Founded in 2009, MV Electrosystems Ltd. is engaged in the design, development, assembly and manufacturing of electrical and power electronics equipment used in railway rolling stock. The company offers a diversified portfolio comprising IGBT-based three-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and electric multiple units (EMUs), cable protection and management solutions, along with a range of other electrical components, systems and sub-systems.
The company caters to India’s expanding railway ecosystem, which is benefiting from broad-gauge electrification, the government’s Make in India initiative and the ongoing expansion of the rail network, including proposed high-speed rail corridors.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
