MV Electrosystems IPO to open on July 30; sets price band at Rs 400-425 per share
MV Electrosystems has fixed the price band for its Rs 290 crore IPO at Rs 400-425 per share. The issue, opening on July 30, will fund working capital, R&D and corporate needs as the railway electronics manufacturer expands its manufacturing capaci...
By Ritesh Presswala, ETMarkets.com |
MV Electrosystems Limited, a technology-driven manufacturer of advanced electrical and power electronics systems for the railway sector, has announced the price band for its Initial Public Offering (IPO) at Rs 400-425 per equity share of face value Rs 5 each.
The public issue will open for subscription on Thursday, July 30, 2026, and close on Monday, August 3, 2026, while the anchor investor bidding is scheduled for Wednesday, July 29, 2026. Investors can bid for a minimum of 34 equity shares and in multiples of 34 thereafter.
The company currently has 20,459,200 outstanding equity shares of face value Rs 5 each.
IPO proceeds to fuel expansion and innovation
The IPO consists entirely of a fresh issue of equity shares aggregating up to Rs 2,900 million. The proceeds will primarily be utilised to strengthen the company's growth strategy through: Rs 1,800 million for long-term working capital requirements. Rs 210 million towards research, design and development of next-generation power electronic equipment. The remaining amount for general corporate purposes.
The issue is being offered through the book-building process, with not less than 75% reserved for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and up to 10% for Retail Individual Investors (RIIs).
MV Electrosystems has established itself as a specialist in designing, developing, assembling and manufacturing sophisticated electrical and power electronics equipment used in railway rolling stock. Its product portfolio includes IGBT-based three-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and EMUs, cable protection systems, and a range of electrical components, systems and sub-systems.
The company is strategically positioned to benefit from India's growing focus on rail electrification, indigenous manufacturing and sustainable transportation, aligning with national initiatives and promoting self-reliance and decarbonization.
A significant achievement for the company 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's indigenously designed and developed propulsion package comprises a comprehensive suite of advanced railway systems, including traction converter-inverter systems, auxiliary converters, Vehicle Control Units (VCU), Train Control Management Systems (TCMS), and Driver Display Units (DDUs). Engineered entirely in-house, these critical components are designed to meet international safety and performance standards while supporting the modernisation and localisation of India's railway network.
These systems have been engineered to meet international safety and performance standards while supporting India's localisation goals.
Expanding beyond rolling stock, MV Electrosystems has entered into a three-year exclusive Business Cooperation Agreement with PNC Technologies Co. Ltd., South Korea, for the manufacturing, supply and distribution of Auto Fault Locator systems for 25 KV railway overhead electrification lines across India.
The partnership marks the company's entry into the rapidly growing rail electrical infrastructure segment.
Secures major MEMU propulsion order
Further strengthening its order pipeline, the company received a Letter of Acceptance on June 27, 2026, from the Modern Coach Factory, Raebareli, for the design, development, manufacture, supply, testing and commissioning of microprocessor-controlled IGBT-based three-phase propulsion equipment for six MEMU trains.
The order comprises Rs 865.46 million for propulsion equipment and Rs 46.86 million for a five-year comprehensive annual maintenance contract. This project represents the company's entry into propulsion systems for distributed power supply trains.
Innovation remains central to MV Electrosystems' growth strategy. Its DSIR-recognized in-house Research, Design and Development Centre in Faridabad, Haryana, serves as the technological backbone of the company, focusing on high-performance power electronics and advanced railway systems.
The R&D centre received official recognition from the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India, on June 12, 2026.
To support future product development, particularly for distributed power propulsion systems, the company has also initiated the establishment of a new R&D centre.
Manufacturing capacity expansion underway
MV Electrosystems currently operates its integrated manufacturing and assembly facility at Baghola, Palwal, Haryana (Unit 1), equipped with fabrication, testing and a high-speed Surface Mount Technology (SMT) electronics manufacturing line.
To meet rising demand, the company has secured regulatory approvals for a second manufacturing facility at Nangla Bhiku, Palwal (Unit 2), which will function in an integrated production model alongside the existing unit.
The company maintains stringent quality assurance systems across its manufacturing operations to ensure compliance with railway safety and quality standards.
Financial performance
As of June 30, 2026, MV Electrosystems had an executable order book comprising 564 three-phase propulsion equipment systems from Chittaranjan Locomotive Works, Banaras Locomotive Works and Patiala Locomotive Works, with:
Equipment orders worth Rs 9,216.40 million. Annual Maintenance Contracts worth Rs 676.78 million.
In addition to its confirmed order book, the company has secured developmental orders for microprocessor-controlled IGBT-based three-phase propulsion equipment for MEMU trains, along with composite converters and Hotel Load Converters. These developmental projects have a combined order value of Rs 898.57 million, complemented by Annual Maintenance Contracts (AMC) worth Rs 48.64 million, further strengthening the company's future revenue pipeline.
Issue management
Sundae Capital Advisors Private Limited is acting as the Book Running Lead Manager to the issue, while KFin Technologies Limited is the Registrar.
The company's equity shares are proposed to be listed on both the NSE and BSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The public issue will open for subscription on Thursday, July 30, 2026, and close on Monday, August 3, 2026, while the anchor investor bidding is scheduled for Wednesday, July 29, 2026. Investors can bid for a minimum of 34 equity shares and in multiples of 34 thereafter.
The company currently has 20,459,200 outstanding equity shares of face value Rs 5 each.
IPO proceeds to fuel expansion and innovation
The IPO consists entirely of a fresh issue of equity shares aggregating up to Rs 2,900 million. The proceeds will primarily be utilised to strengthen the company's growth strategy through: Rs 1,800 million for long-term working capital requirements. Rs 210 million towards research, design and development of next-generation power electronic equipment. The remaining amount for general corporate purposes.
The issue is being offered through the book-building process, with not less than 75% reserved for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and up to 10% for Retail Individual Investors (RIIs).
ADVERTISEMENT
MV Electrosystems has established itself as a specialist in designing, developing, assembling and manufacturing sophisticated electrical and power electronics equipment used in railway rolling stock. Its product portfolio includes IGBT-based three-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and EMUs, cable protection systems, and a range of electrical components, systems and sub-systems.
The company is strategically positioned to benefit from India's growing focus on rail electrification, indigenous manufacturing and sustainable transportation, aligning with national initiatives and promoting self-reliance and decarbonization.
A significant achievement for the company 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's indigenously designed and developed propulsion package comprises a comprehensive suite of advanced railway systems, including traction converter-inverter systems, auxiliary converters, Vehicle Control Units (VCU), Train Control Management Systems (TCMS), and Driver Display Units (DDUs). Engineered entirely in-house, these critical components are designed to meet international safety and performance standards while supporting the modernisation and localisation of India's railway network.
ADVERTISEMENT
These systems have been engineered to meet international safety and performance standards while supporting India's localisation goals.
Expanding beyond rolling stock, MV Electrosystems has entered into a three-year exclusive Business Cooperation Agreement with PNC Technologies Co. Ltd., South Korea, for the manufacturing, supply and distribution of Auto Fault Locator systems for 25 KV railway overhead electrification lines across India.
ADVERTISEMENT
The partnership marks the company's entry into the rapidly growing rail electrical infrastructure segment.
Secures major MEMU propulsion order
Further strengthening its order pipeline, the company received a Letter of Acceptance on June 27, 2026, from the Modern Coach Factory, Raebareli, for the design, development, manufacture, supply, testing and commissioning of microprocessor-controlled IGBT-based three-phase propulsion equipment for six MEMU trains.
The order comprises Rs 865.46 million for propulsion equipment and Rs 46.86 million for a five-year comprehensive annual maintenance contract. This project represents the company's entry into propulsion systems for distributed power supply trains.
Innovation remains central to MV Electrosystems' growth strategy. Its DSIR-recognized in-house Research, Design and Development Centre in Faridabad, Haryana, serves as the technological backbone of the company, focusing on high-performance power electronics and advanced railway systems.
The R&D centre received official recognition from the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India, on June 12, 2026.
To support future product development, particularly for distributed power propulsion systems, the company has also initiated the establishment of a new R&D centre.
Manufacturing capacity expansion underway
MV Electrosystems currently operates its integrated manufacturing and assembly facility at Baghola, Palwal, Haryana (Unit 1), equipped with fabrication, testing and a high-speed Surface Mount Technology (SMT) electronics manufacturing line.
To meet rising demand, the company has secured regulatory approvals for a second manufacturing facility at Nangla Bhiku, Palwal (Unit 2), which will function in an integrated production model alongside the existing unit.
The company maintains stringent quality assurance systems across its manufacturing operations to ensure compliance with railway safety and quality standards.
Financial performance
As of June 30, 2026, MV Electrosystems had an executable order book comprising 564 three-phase propulsion equipment systems from Chittaranjan Locomotive Works, Banaras Locomotive Works and Patiala Locomotive Works, with:
Equipment orders worth Rs 9,216.40 million. Annual Maintenance Contracts worth Rs 676.78 million.
In addition to its confirmed order book, the company has secured developmental orders for microprocessor-controlled IGBT-based three-phase propulsion equipment for MEMU trains, along with composite converters and Hotel Load Converters. These developmental projects have a combined order value of Rs 898.57 million, complemented by Annual Maintenance Contracts (AMC) worth Rs 48.64 million, further strengthening the company's future revenue pipeline.
Issue management
Sundae Capital Advisors Private Limited is acting as the Book Running Lead Manager to the issue, while KFin Technologies Limited is the Registrar.
The company's equity shares are proposed to be listed on both the NSE and BSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
