MV Electrosystems IPO kicks-off: Should you apply or avoid? Check details, reviews & GMP

MV Electrosystems is set to launch its initial public offering on Thursday, July 30. The electrical & power electronics equipment is selling its shares of Rs 400-425 apeice. Investors can apply for a minimum of 34 equity shares and its multiples thereafter, until Monday, August 3, when the issue closes for bidding.

The IPO of MV Electrosystems is entirely a fresh share sale of 68,23,528 equity shares, eyeing to raise Rs 290 crore. The net proceeds from the issue shall be utilized towards funding long-term working capital requirements; investment in research design and development activities for new power electronic equipment; and general corporate purposes.

Incorporated in 2009, Faridabad-based MV Electrosystems is engaged in engaged in the design, development, assembly and manufacturing of electrical & power electronics equipment used in railway rolling stock including IGBT based 3-Phase Drive Propulsion equipment for electric locomotives, switchgear panels for railway coaches & EMU’s, cable protection and others.

Brokerage firms said that MV Electrosystems presents a mixed investment case. It reported a weak FY26, with revenue declining about 21 per cent YoY and a net loss of around Rs 13 crore, while related-party transactions and rising debt remain key concerns. As it is loss-making, traditional valuation metrics such as the P/E ratio are less meaningful, making execution the key monitorable.

MV Electrosystems' financial performance weakened in FY26, with revenue declining around 21 per cent YoY and reporting a net loss of Rs 12.6 crore. Investors should also monitor its related-party exposure arising from promoter loans and other transactions. It is currently loss-making, conventional valuation metrics such as the P/E ratio have limited relevance, said Swastika Investmart.

"The investment thesis is largely execution-driven and hinges on the company's ability to deliver sustained revenue growth and improve profitability over the coming quarters. Given these risks, conservative investors may prefer to wait for greater operational consistency before considering an investment," it said.

MV Electrosystems reported a net loss at Rs 12.63 crore with a revenue of Rs 49.79 crore for the financial year ended on March 31, 2026. It clocked a net profit of Rs 1.40 crore with a revenue of Rs 64.64 crore for fiscal year 2024-25. At the current valuation, it commands a total market capitalization of nearly Rs 1,160 crore.

MV Electrosystems is positioned to benefit from India's railway modernisation, supported by its in-house design and development of 3-phase propulsion equipment. Although it reported a net loss of around Rs 13 crore in FY26, its strong executable order book of nearly Rs 922 crore and approval from Chittaranjan Locomotive Works (CLW) provide a solid foundation for a turnaround, said SBI Securities.

With Indian Railways expected to procure propulsion equipment worth nearly Rs 19,797 crore over the next five years, the growth opportunity remains significant. IPO proceeds will fund working capital, enabling production capacity to increase from 20 to around 50 propulsion sets per month, supporting long-term growth prospects. It will fit in a high risk, high-return investment matrix," it added.

MV Electrosystems has reserved 75 per cent of shares for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of allocation. Retail investors will get 10 per cent reservation in the IPO. Last heard, The company was commanding a grey market premium (GMP) of Rs 100-105 per share, suggesting a 24-25 per cent listing gains for the investors.

Despite MV Electrosystems' strong technological capabilities and healthy order book, inconsistent topline performance, execution risks in ramping up order execution, rising debt and the demanding valuation led us to believe the current risk-reward remains unfavourable, said BP Equities and assigned an 'Avoid' rating to the issue.

Sundae Capital Advisors is the sole book running lead manager of MV Electrosystems IPO and Kfin Technologies Ltd is the registrar of the issue. Shares of the company shall be listed on both BSE Ltd and NSE. Shares of the company are likely to debut on August 06, Monday.