The ₹290 crore initial public offering of MV Electrosystems demonstrated exceptional investor demand on Day 2, with the grey market premium (GMP) climbing to ₹294 per share, reflecting a premium of ₹120 or 29.4% above the upper price band of ₹425. As per Business Standard, the IPO witnessed over 12 times subscription as of 17:00 IST on July 31, with the retail investor portion subscribed 26 times against 7.24 lakh shares reserved for retail bidders. The qualified institutional buyers' portion received 84% subscription against 21.74 lakh shares reserved for institutional investors, while the non-institutional investors category received bids for 8.5 times the 10.87 lakh shares on offer. The issue opened for subscription on July 30, 2026, with anchor investor bidding beginning on July 29, 2026 and anchor investors raising ₹130.49 crore by allotting 30.70 lakh equity shares at ₹425 per share to 14 anchor investors. The Day 2 subscription will start at 10 am, indicating continued strong investor interest and the three-day subscription window will conclude on August 3, 2026.
According to Business Standard, the IPO received bids for 4.79 crore shares against 39.87 lakh shares on offer, translating into an overall subscription of 12.03 times as of 17:00 IST on July 31. The retail individual investor (RII) portion was subscribed 26 times, emerging as the strongest segment, while the non-institutional investor (NII) category was subscribed 8.5 times. The grey market premium (GMP) stands at ₹294, indicating a potential listing gain of approximately ₹294 per share for investors who receive allotment at the upper end of the price band, though GMP is an unofficial market indicator. The IPO is entirely a fresh issue of 68 lakh equity shares with a price band of ₹400-425 per share and will remain open until August 3, 2026. At the upper end of the price band, MV Electrosystems is expected to command a post-issue market valuation of approximately ₹1,159 crore. The company intends to use the net proceeds from the issue to meet its long-term working capital requirements, invest in research, design and development of new power electronic equipment, and for general corporate purposes.
Brokerages remain divided on the MV Electrosystems IPO, with SBI Securities and Ventura Research recommending 'Subscribe' while Swastika Investmart has maintained an 'Avoid' rating. As per Business Standard, SBI Securities recommended subscribing to the issue for a long-term investment horizon, citing the company's positioning to benefit from Indian Railways modernisation through indigenous design and development of three-phase propulsion equipment. The brokerage believes the demand for propulsion equipment will remain strong as Indian Railways continues its modernisation, with the 5-year procurement estimation of Propulsion Equipment by Indian Railways (around ₹19,797 crore) appearing to be a suitable TAM for the company. SBI Securities noted that while the company reported a net loss of around ₹13 crore in FY26, it remains a favorable candidate for turnaround given the robust order book and CLW approval, expecting 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. However, Swastika Investmart has maintained an 'Avoid' rating, citing concerns over the company's recent performance and future growth visibility, highlighting that traditional valuation metrics such as the P/E ratio have limited relevance for a loss-making company and advising risk-averse investors to wait for greater operational consistency over the next few quarters.
In FY26, the company generated approximately ₹47 crore in revenue from the supply of three-phase propulsion equipment, as per Business Standard. Indian Railways accounted for 76.72% of its revenue from operations during the year, while the private sector (excluding group companies) contributed 15.82% and group companies accounted for 7.29%. The company reported a loss of ₹13 crore for the financial year ended March 2026, against a profit of ₹1 crore in FY25. Revenue declined 21.1% to ₹49 crore from ₹63 crore during the same period. The company's total revenue from operations was ₹49.96 crore in FY24, which increased to ₹62.64 crore in FY25. The company's executable order book comprises 564 three-phase propulsion equipment systems from Chittaranjan Locomotive Works, Banaras Locomotive Works and Patiala Locomotive Works, with equipment orders worth ₹9,216.40 million and annual maintenance contracts worth ₹676.78 million. The company's robust executable order book of around ₹922 crore for Propulsion Equipment (as of June 2026), combined with the receipt of approval from CLW, positions it favorably for future growth.
MV Electrosystems, founded by Mohit Vohra, operates as a technology-driven company specializing in the design, development, assembly and manufacturing of electrical and power electronics equipment for railway rolling stock. The company manufactures IGBT-based three-phase drive propulsion equipment for electric locomotives, switchgear panels for railway coaches & EMUs, cable protection & management products and electrical components, systems and sub-systems. A significant achievement came in September 2025, when it received approval from Chittaranjan Locomotive Works (CLW) for its IGBT-based three-phase drive propulsion equipment. Commercial supplies to Indian Railways commenced in March 2026. The company has also entered into a three-year exclusive Business Cooperation Agreement with PNC Technologies Co. Ltd., South Korea, for manufacturing, supply and distribution of Auto Fault Locator systems for 25 KV railway overhead electrification lines across India. As per the RHP, the company operates within India's rail infrastructure transition, driven by mandated broad-gauge electrification, Make-in-India procurement requirements, and the expansion of the network, including upcoming high-speed corridors.
