MV Electrosystems IPO subscribed 45% by mid-morning as retail investors drive demand

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SBI Securities has recommended subscribing to the IPO for the long term, citing the company’s growth prospects in railway propulsion systems, a robust order book of around ₹922 crore, and expansion plans funded through the IPO, while cautioning that it remains a high-risk, high-return investment.

MV Electrosystems’ initial public offering was subscribed 0.45 times, or 45 per cent, as of 10.33 am on the first day of bidding.

The retail investors’ portion was subscribed 1.89 times, while the non-institutional investors’ category was subscribed 0.38 times. The qualified institutional buyers’ portion had not received any bids at the time.

The public issue is priced in the range of ₹400-425 per share and comprises an entirely fresh issue of equity shares aggregating up to ₹290 crore. The company plans to use the IPO proceeds for business expansion and other corporate purposes.

The IPO opened for subscription today and will close on August 3.

Ahead of the IPO, the company raised ₹130.5 crore from anchor investors by allotting 30.7 lakh equity shares to 14 funds at ₹425 per share, the upper end of the price band.

The anchor book saw participation from Kotak Mutual Fund, Founders Collective Fund, 360 ONE Prime Ltd, Subhkam Ventures, Shine Star Build Cap, Ashika Global Finance, Finavenue Growth Fund, Tattvam Aanjay Ageless AIF, VentureX Fund and Meru Investment Fund.

SBI Securities recommended subscribing to the issue for a long-term investment horizon. The brokerage said the company is well-positioned to benefit from the modernisation of Indian Railways through its indigenous design and development of three-phase propulsion equipment.

It said that despite reporting a net loss of about ₹13 crore in FY26, the company is a favourable turnaround candidate backed by an executable order book of about ₹922 crore for propulsion equipment as of June 2026 and approval from CLW. The brokerage added that the company intends to increase propulsion system production from 20 sets per month to about 50, supported by IPO proceeds for working capital.

SBI Securities said investors should note that the company’s turnaround potential places it in a high-risk, high-return investment matrix.