MV Electrosystems IPO booked 7.5x on day 2, GMP at 29%; should you apply?

MV Electrosystems IPO GMP today: MV Electrosystems shares currently trade at ₹545 in the grey market, reflecting a premium of ₹120, or 29.4 per cent, above the upper price band of ₹425.

The initial public offering (IPO) of MV Electrosystems witnessed strong investor demand on the second day of bidding on Friday (July 31), with the issue being subscribed more than five times. As per NSE data around 12:45 AM, MV Electrosystems' IPO was subscribed 7.5 times, led by strong participation from retail investors.

 

The category for retail investors got subscribed 26 times, while non-institutional investors' quota received 8.5 times subscription. Qualified Institutional Buyers (QIBs) portion received 84 per cent subscription, as per NSE data.

 

The IPO, which is entirely a fresh issue of equity shares, aggregating up to ₹290 crore, has a price band of ₹400-425 per share. The three-day subscription window will conclude on August 3 (Monday).

 

 

MV Electrosystems IPO review

 

Brokerages are divided on the MV Electrosystems IPO. While SEBI Securities and Ventura Research have recommended 'Subscribe', Swastika Investmart has rated it 'Avoid'.

 

MV Electrosystems IPO review by SBI Securities 

 

SBI Securities said that MV Electrosystems remains a favourable candidate for turnaround given its robust executable order book of ₹922 crore for Propulsion Equipment (as of June 2026), combined with the receipt of approval from CLW. Additionally, the 5-year procurement estimation of Propulsion Equipment by Indian Railways appears to be a suitable TAM for the company.

 

Further, the mobilisation of IPO proceeds towards working capital requirements shall aid in reporting improved performance starting 2HFY27.

 

"We recommend investors to Subscribe to the issue for a long-term investment horizon," the brokerage said.   

 

MV Electrosystems IPO: Key strengths

 

Ventura said that MV Electrosystems' key strengths include:

 

- Strong in-house research, design and development capabilities across power electronics, embedded systems and thermal design

 

- Proprietary indigenous technology free of royalty or technology-fee outflows

 

- High regulatory entry barriers via RDSO/CLW approval pathways

 

- Long standing relationship with Indian Railways (76.72 per  cent of FY26 revenue)

 

- Experienced promoter group led by Mohit Vohra with over 17 years of railway industry experience

 

MV Electrosystems financials 

 

MV Electrosystems' revenue from operations stood at ₹49 crore in FY26 against ₹63 crore in FY25, reflecting a decline of 21.1 per cent Y-o-Y, as the business pivoted from legacy components towards propulsion. 

 

The company reported an Ebitda loss of ₹10 crore, Ebitda margin of -20.8 per cent, and a loss of ₹13 crore (PAT margin of -25.5 per cent), against a PAT of ₹1 crore in FY25 due to front-loaded R&D, employee and capacity costs incurred ahead of propulsion revenue ramp-up.  

MV Electrosystems financials

 

Swastika Investmart: 'Avoid'

 

Swastika Investmart noted that the company's related-party exposure, including promoter loans and transactions, warrants close investor attention. It also said that traditional valuation metrics such as P/E offer limited relevance given the company's loss-making status.

 

The brokerage added that the investment case is largely execution-driven and requires sustained revenue growth and margin improvement. It advised risk-averse investors to wait for greater operational consistency over the next few quarters before taking exposure.

 

MV Electrosystems IPO GMP today

 

MV Electrosystems shares are commanding a decent premium in the unlisted market. As per several websites tracking grey market activities, MV Electrosystems shares currently trade at ₹545, reflecting a premium of ₹120, or 29.4 per cent.

 

MV Electrosystems shares are proposed to list on both the leading bourses (BSE and NSE) on August 6.

 

Mumbai-based MV Electrosystems is engaged in the design, development, assembly and manufacturing of electrical and power electronics equipment used in railway rolling stock.  ========================================================= 

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