Archive · 31 Jul 2026
MV Electrosystems IPO: Strong Demand, Mixed Brokerage Views
MV Electrosystems, a company that makes parts for trains, sold shares to the public in July 2024.
People were very interested, buying many more shares than were available.
The company will get about ₹290 crore to grow its business.
Some experts say it’s a good long‑term investment, while others warn that the company is still losing money and needs to improve.
The shares will trade on India’s main stock exchanges starting in early August.
MV Electrosystems Ltd. launched its IPO on July 30, 2024, with a price band of ₹400‑425 per share.
The issue is fully subscribed 3.87 times on Day 1, with a grey market premium of ₹125, implying a potential debut price of ₹550.
The company will raise up to ₹290 crore, earmarking ₹180 crore for working capital, ₹21 crore for R&D, and the rest for general corporate purposes.
Brokerage opinions diverge: SBI Securities recommends long‑term subscription citing a robust order book, while Swastika Investmart advises caution due to losses and related‑party exposure.
MV Electrosystems is backed by prominent investor Madhuri Madhusudan Kela and promoted by the Dhawan family, targeting expansion in India’s railway electrification push.
- Who
- MV Electrosystems Ltd. and investors
- What
- Initial public offering of equity shares
- When
- July 30, 2024 – August 3, 2024
- Where
- India, to be listed on BSE and NSE
- Why
- To raise capital for expansion and working‑capital needs
- IPO price band
- ₹400-425 per share
- Issue size
- up to ₹290 crore
- Subscription multiple
- 3.87× on Day 1
- Grey market premium
- ₹125 per share
- Use of proceeds
- ₹180 crore working capital, ₹21 crore R&D, rest general corporate