MV Electrosystems has secured Rs 130.5 crore from 10 anchor investors ahead of its initial public offering, with Kotak Mahindra Asset Management Company accounting for the largest portion of the allocation.
The company completed the anchor placement on July 29, a day before the public issue opens for subscription. Its Rs 290-crore IPO will remain open from July 30 to August 3, with shares priced between Rs 400 and Rs 425 apiece. The offering consists entirely of newly issued shares.
MV Electrosystems IPO: Kotak AMC takes the largest allocation
MV Electrosystems allotted 30.7 lakh equity shares to anchor investors at Rs 425 per share, the upper end of the IPO price band.
Kotak Mahindra Asset Management Company purchased 12.35 lakh shares through three schemes. The investment was valued at Rs 52.49 crore and represented 40.22% of the overall anchor book.
Subhkam Ventures received the second-largest disclosed allocation, acquiring 4.23 lakh shares for Rs 18 crore. Other participants included 360 ONE, Finavenue Capital Trust, Founders Collective Fund, Ashika India Select Fund and Meru Investment Fund.
How MV Electrosystems plans to use the IPO proceeds
The company intends to deploy Rs 180 crore from the net proceeds towards its long-term working capital needs.
Another Rs 21 crore has been earmarked for research, design and development of new power electronics equipment. The remaining funds will be used for general corporate purposes.
Financial performance ahead of the IPO
MV Electrosystems reported a loss of Rs 12.6 crore for the financial year ended March 2026, compared with a profit of Rs 1.4 crore in the previous year.
Revenue fell 21% to Rs 49.4 crore during the same period, down from Rs 62.6 crore. The latest figures follow a year of sharp expansion in FY25, when profit increased 25.4% and revenue rose 152%.
What MV Electrosystems does?
MV Electrosystems develops electrical equipment and power electronics systems for the railway industry.
Its product portfolio includes IGBT-based three-phase propulsion equipment for electric locomotives, switchgear, panels used in railway coaches and electric multiple units, and products designed for cable protection and management.
The company’s shares are scheduled to begin trading on the stock exchanges on August 6. Sundae Capital Advisors is the merchant banker handling the public issue.
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