MV Electrosystems IPO Day 3: GMP jumps, indicating 27% listing gains; issue subscribed 12.03 times; apply or skip?

The MV Electrosystems IPO entered its final day of bidding, with subscription momentum remaining robust and the grey market premium (GMP) staying healthy. The IPO's GMP is around Rs 115 per share, indicating an estimated 27% listing premium over the upper issue price of Rs 425.

As of Day 2, the IPO was subscribed 12.03 times against the 39.87 lakh shares on offer. The retail investor portion was subscribed 39.76 times against the 7.24 lakh shares reserved for retail bidders.

The MV Electrosystems IPO comprises a fresh issue of 68.23 lakh shares aggregating Rs 290 crore. Since the issue does not include an offer-for-sale (OFS) component, the entire proceeds from the IPO will be utilised by the company to support business operations, meet working capital requirements, and fund future growth initiatives.


The IPO opened for subscription on July 30, 2026, and investors can place their bids until August 3, 2026. The basis of allotment is expected to be finalised on August 4, 2026, while the shares are likely to be listed on both the NSE and BSE on August 6, 2026.

The company has set the IPO price band at Rs 400-425 per share. The minimum application size is 34 shares, which means retail investors will need to invest at least Rs 14,450 to apply at the upper end of the price band.

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Sundae Capital Advisors Pvt. Ltd. is the book-running lead manager for the issue, while KFin Technologies Ltd. is acting as the registrar.

MV Electrosystems IPO GMP Today

The grey market premium (GMP) for the MV Electrosystems IPO is currently around Rs 115 per share, indicating a potential listing premium of nearly 27% over the upper issue price of Rs 425.

Based on the prevailing GMP, the estimated listing price of MV Electrosystems shares is around Rs 540 per share, translating into a potential listing gain of about Rs 115 per share for investors allotted shares at the upper end of the price band.

However, investors should note that the GMP is an unofficial market indicator and is subject to change before the listing. It can fluctuate depending on investor sentiment, subscription demand, and overall market conditions.

MV Electrosystems IPO Subscription Status

As of Day 2, the MV Electrosystems IPO was subscribed 12.03 times overall against the 39.87 lakh shares on offer.

The Retail Individual Investors (RIIs) segment was subscribed 39.76 times against the 7.24 lakh shares reserved for retail investors.

The Non-Institutional Investors (NIIs) category received bids for 15.77 times the shares on offer, against an allocation of 10.87 lakh shares.

Meanwhile, the Qualified Institutional Buyers (QIBs) portion was subscribed 0.91 times (91%) against the 21.74 lakh shares reserved for institutional investors.

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Where Will MV Electrosystems Use IPO Funds?

The company intends to utilise the proceeds from the IPO primarily to strengthen its operations, support expansion plans, and improve its long-term growth prospects.

A major portion of the funds raised will be allocated towards meeting the company's long-term working capital requirements, with an investment of Rs 180 crore. Additionally, Rs 21 crore will be used for research and development activities focused on developing new power electronic equipment. The remaining amount will be utilised for general corporate purposes.

Since MV Electrosystems operates in the large-scale manufacturing and infrastructure-related sector, adequate working capital support is crucial for managing production cycles, executing projects efficiently, and meeting growing business requirements.

About MV Electrosystems Ltd.

Founded in 2009, MV Electrosystems Ltd. is engaged in the design, development, assembly, and manufacturing of electrical and power electronic equipment used mainly in railway rolling stock applications.

The company offers a diverse range of products, including IGBT-based 3-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and EMUs, cable protection and management solutions, and various electrical components, systems, and sub-systems.

MV Electrosystems operates in a sector that is witnessing strong growth due to India's ongoing railway modernisation initiatives, including broad-gauge electrification, increased focus on domestic manufacturing under the Make-in-India program, and expansion of the railway network.

With rising investments in railway infrastructure and the development of high-speed rail projects, the company is positioned to benefit from the growing demand for advanced power electronics, railway electrical systems, and related engineering solutions.

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Should You Apply for MV Electrosystems IPO?

Despite the positive sentiment in the grey market, analysts recommend that investors carefully evaluate the company's financial performance and business outlook before making an investment decision.

Brokerage firm Swastika Research has assigned an "Avoid" rating to the MV Electrosystems IPO, citing concerns over the company's recent performance and future growth visibility.

The brokerage highlighted that the company's FY26 financial performance weakened, with revenue declining by around 21% year-on-year. Additionally, MV Electrosystems reported a net loss of Rs 12.6 crore, raising concerns about its current profitability.

Investors should also closely monitor the company's related-party transactions and promoter loans, as these factors require further scrutiny. Since the company is currently loss-making, traditional valuation measures such as the price-to-earnings (P/E) ratio may not provide meaningful insights.

According to analysts, the success of the investment opportunity will largely depend on the company's ability to improve execution, achieve consistent revenue growth, and expand profit margins in the coming years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)