MV Electrosystems IPO booked 101x so far, GMP at 26%: Last chance to apply

MV Electrosystems IPO: The ₹290-crore initial public offering (IPO) of MV Electrosystems is set to become one of the most subscribed offers of fiscal year 2026-27 (FY27) with its subscription crossing 100 times on the final day of the book-built process on Monday, August 3. 

 

MV Electrosystems IPO was booked a whopping 101.24 times as of 1.50 PM as it received bids for 403.67 million units as against 3.9 million shares on offer. The retail and high net worth individuals led the bidding process, shows data available on BSE. 

 

The non-institutional investor (NII) quota was booked 254.23 times at the time of writing this report, while the retail segment was subscribed 146.06 times. The institutional qualified buyers (QIBs) segment received 9.80 times bids. With another three years left before the closure of the IPO, it could garner more bids.  Also Read | IPO boom fades as weak market conditions force issuers to cut back

 

 

MV Electrosystems IPO GMP

The grey market premium (GMP) for MV Electrosystems remains robust, signalling double-digit gains for the stock when it lists later this week. 

 

Websites tracking the grey market suggested MV Electrosystems IPO GMP today is ₹112 apiece. This means that shares of MV Electrosystems are trading ₹537, up 26 per cent over the offer price.

 

MV Electrosystems IPO: Should you bid?

MV Electrosystems IPO has opened for bidding last week on July 30. The offer, priced at ₹400 to ₹425 apiece, is entirely a fresh share sale. Since there is no offer for sale (OFS) component, all proceeds will be received by the company. 

 

The company plans to use the funds raised for funding long-term working capital needs, invest in research, design and development activities for new power electronic equipment, along with general corporate purposes. 

 

MV Electrosystems stands as a key player within India’s rail infrastructure transition by the virtue of its indigenous in-house design & development of 3-Phase Propulsion Equipment. While the company posted a net loss of ₹13 crore in FY26, SBI Securities said it remains a "favorable candidate for turnaround given its robust executable order book".  Also Read | Technocraft Ventures IPO opens Aug 7; price band set

 

Further, the mobilisation of IPO proceeds towards working capital requirements shall aid in reporting improved performance starting H2 FY27 as the company aims to increase its propulsion system production from 20 sets per month currently to ~50 sets per month. Hence, considering MVEL’s robust growth prospects, it recommended investors to SUBSCRIBE to the issue for long term investment horizon.

 

On the flip side, Swastika has an 'AVOID' call given the company's loss-making status. It said that the investment case is execution-driven, requiring sustained revenue growth and margin improvement. "Risk-averse investors may prefer to await operational consistency over the next few quarters before taking exposure," it advised.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.