- MV Electrosystems IPO was booked a remarkable 111.27 times on its final bidding day, driven by strong demand from non-institutional and retail investors.
- The grey market premium (GMP) for MV Electrosystems stands at ₹112 per share, indicating a 26% increase over the offer price.
- On Day 3 of bidding, the IPO was initially booked 101 times, reflecting strong subscription status.
- The IPO, priced between ₹400 to ₹425 per share, aims to raise ₹290 crore through a fresh share sale.
- The non-institutional investor (NII) segment was booked 254.23 times, while the retail segment was subscribed 146.06 times.
- MV Electrosystems is recognized for its indigenous design of 3-Phase Propulsion Equipment, crucial for India's rail infrastructure.
MV Electrosystems' IPO has emerged as one of the most subscribed offers of FY27, with a staggering 111.27 times subscription on its final bidding day, August 3. The IPO, priced between ₹400 and ₹425, aims to raise ₹290 crore through a fresh share sale.14
As of 2:06 PM on the last day, the non-institutional investor (NII) segment was subscribed 279.10 times, while retail investors subscribed 154.94 times. The qualified institutional buyers (QIB) portion saw a subscription of 12.80 times.5
The grey market premium (GMP) for the IPO stands at ₹112, indicating a potential listing gain of 26% over the offer price. This strong demand reflects investor confidence in the company's growth prospects, despite a reported net loss of ₹13 crore in FY26. Analysts from SBI Securities have noted that the company is a "favorable candidate for turnaround" due to its robust executable order book.2
MV Electrosystems plans to utilize the IPO proceeds for long-term working capital needs and to enhance its production capacity from 20 to 50 sets per month. The company has developed an indigenous 3-phase propulsion system approved by Indian Railways, positioning it well for future tenders.
While some analysts recommend subscribing for potential listing gains, others advise caution due to the company's loss-making status. The finalization of share allotment is expected on August 4, with listing anticipated on August 6.
“Demand was led by non-institutional and retail investors, with their portions subscribed 279.10x and 154.94x respectively, while institutional QIBs trailed at 12.80x. The ₹290-crore fresh-issue IPO is priced at ₹400-425 per share and is expected to list on August 6, with proceeds earmarked for working capital and R&D.”
livemint.com
