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MV Electrosystems IPO to debut on BSE, NSE August 6
An IPO is when a company sells its shares to the public for the first time.
MV Electrosystems, a company that makes electrical equipment for trains, just did this.
Lots of people wanted to buy its shares.
In fact, people asked for more than 200 times the number of shares available.
The company's shares will start trading on the stock market on August 6.
Before shares trade, people sometimes guess the price in something called the grey market.
Right now, people think the shares will start at about ₹527 each.
The company sold each share for ₹425.
That means early buyers might make a profit of nearly 24 percent.
The company will use the money it raises to grow its business and make new equipment.
MV Electrosystems' IPO is set to debut on the BSE and NSE on Thursday, August 6.
The public issue was subscribed 200.66 times, with the non-institutional investor segment seeing bids worth 397.99 times its reserved shares.
The grey market premium stands at ₹102, suggesting a listing around ₹527 per share and a potential gain of nearly 24% over the issue price.
The IPO is a fresh issue of equity shares worth up to ₹290 crore with no Offer for Sale, with ₹180 crore earmarked for working capital and ₹21 crore for R&D.
The company, backed by investor Madhuri Madhusudan Kela, manufactures power electronics equipment for railway rolling stock.
Basis of allotment was finalised on August 4, with shares credited to demat accounts on August 5.
Sundae Capital Advisors Pvt. Ltd. is the book-running lead manager and KFin Technologies Ltd. is the registrar.
- Who
- MV Electrosystems, promoted by Mohit Vohra, Amit Dhawan, Sumit Dhawan, Rahul Dhawan, Sonali Dhawan and Ramendra Pratap Singh, and backed by investor Madhuri Madhusudan Kela.
- What
- The company's IPO will be listed on the BSE and NSE after being subscribed 200.66 times.
- Where
- BSE and NSE, India's two main stock exchanges.
- When
- August 6, following a bidding window from July 30 to August 3.
- Why
- To raise up to ₹290 crore through a fresh issue to fund expansion, long-term working capital (₹180 crore), and R&D of new power electronic equipment (₹21 crore).
Key facts
- Listing Date
- August 6
- Exchanges
- BSE and NSE
- Subscription
- 200.66 times
- Issue Price (upper band)
- ₹425 per share
- Grey Market Premium
- ₹102
- Estimated Listing Price
- Around ₹527 per share (~24% potential gain)
- Issue Size
- Fresh issue of up to ₹290 crore, no Offer for Sale
- Registrar
- KFin Technologies
Sources
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