MV Electrosystems shares surge 15% as Kotak MF exposure tops 5%

Shares of MV Electrosystems Ltd soared 15 per cent in Wednesday’s trade after the company informed stock exchanges that Kotak Mahindra Mutual Fund had increased its stake in the company to more than 5 per cent of its issued equity share capital through its schemes. The recent debutant said Kotak MF had purchased additional shares from the open market.

Kotak MF, through its schemes, now holds 13,74,317 shares, or a 5.0373 per cent stake, in MV Electrosystems. This follows its purchase of an additional 1,00,000 shares, or a 0.3665 per cent stake, from the open market on October 9. It earlier held 12,74,317 shares, or a 4.6708 per cent stake, in the company, data showed.

The stock rose 14.67 per cent to hit a high of Rs 956 apiece on BSE.

MV Electrosystems manufactures electrical and power electronics equipment for railway rolling stock, with a focus on the design, development, assembly and in-house manufacturing of advanced systems. Its core capabilities include indigenous engineering and complex railway power electronics solutions tailored to Indian Railways’ evolving requirements.

In September 2025, the company received approval from Chittaranjan Locomotive Works (CLW), Indian Railways, for its in-house designed and developed IGBT-based three-phase drive propulsion equipment. The system includes a traction converter-inverter system, auxiliary converter, vehicle control units or train control management system, and driver display units, all developed internally to meet international safety and performance standards.

Commercialisation began in March 2026, when the company commenced supplies of three-phase propulsion equipment to Indian Railways. Separately, its R&D Centre was recognised by the Department of Scientific and Industrial Research (DSIR), under the Ministry of Science and Technology, on June 12, 2026, reinforcing its research and development capabilities, HDFC Securities said in its IPO note.

As of June 30, the company’s order book stood at Rs 921.64 crore. Its revenue and profit have been inconsistent over the past three reporting periods, HDFC Securities noted.