MV Electrosystems is set to launch an initial public offering (IPO) to raise almost Rs 300 crore from the primary market, providing solutions for railway rolling stock. The grey market premium (GMP) indicated a premium of over 23% for the issue.
Ahead of its opening, investors who want to bid for shares in the IPO must check the details before making an investment call. According to the latest grey market trends, MV Electrosystems IPO was commanding a premium of Rs 100.
The estimated listing gain is around 23.5% over the upper end of the price band. However, grey market premiums are unofficial and can change rapidly before listing.
MV Electrosystems’ IPO is a book build issue of Rs 290 crore, comprising a fresh issue of 68.23 lakh shares. The price band for the IPO is set between Rs 400 and Rs 425 per share.
Retail investors need to bid for a single lot size of 34 shares, requiring an investment of Rs 14,450. Small Non-Institutional Investors (S-HNI) need to bid for 14 lots, amounting to an investment of Rs 2,02,300.
Big Non-Institutional Investors (B-HNI) can participate in the IPO by bidding for a minimum of 70 lots, leading to an investment of Rs 10,11,500. Qualified Institutional Buyers (QIBs) will be offered not less than 75% of the net issue.
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Retail investors will be allocated not more than 10% of the net issue and not more than 15% will be reserved for Non-Institutional Investors (NIIs). Sundae Capital Advisors Ltd. is the book running lead manager and KFin Technologies Ltd. is the registrar of the issue.
The IPO opens on July 30 and closes on August 3. Allotment will be on August 4, refunds on August 5, and demat credit on August 5. The listing is scheduled for August 6.
The company will use proceeds from the IPO to fund long-term working capital requirements, invest in research, design, and development activities for new power electronic equipment, and for general corporate purposes.
MV Electrosystems is engaged in the design, development, assembly, and manufacturing of electrical and power electronics equipment used in railway rolling stock. Its portfolio includes IGBT-based 3-phase drive propulsion equipment for electric locomotives.
The company reported a net loss of Rs 12.63 crore in FY26, down from a profit after tax of Rs 1.40 crore in FY25. Revenue from operations dropped 21.09% year-on-year (YoY) to Rs 49.43 crore in FY26 from Rs 62.64 crore in FY25.
Investments in initial public offerings are subject to market risks, and investors must consult with financial advisors and read the red herring prospectus thoroughly before placing bids. They should carefully evaluate their investment decisions, taking into account the company’s financial performance and industry trends, such as the impact of tariffs on global markets.
