MV Electrosystems IPO: 10 key things to know from the DRHP before subscribing to the Madhuri Kela-backed issue

MV Electrosystems IPO AI Quick ReadMV Electrosystems IPO: Madhuri Madhusudan Kela-backed MV Electrosystems' ₹290 crore initial public offering (IPO) will open for subscription on July 30 and close on August 3. The company has fixed a price band of ₹400-425 per share, with share allotment expected on August 4 and a tentative listing on the NSE and BSE on August 6.

Retail investors can bid for a minimum of 34 shares, requiring an investment of ₹14,450 at the upper end of the price band. Sundae Capital Advisors Pvt. Ltd. is the book-running lead manager to the issue, while KFin Technologies Ltd. is the registrar.

The proposed IPO is worth up to ₹290 crore and comprises only a fresh issue of equity shares. As there is no Offer for Sale (OFS), the entire proceeds from the issue will be received by the company and deployed towards its expansion and funding requirements.

The company plans to utilise ₹180 crore from the net proceeds towards its long-term working capital requirements. It has also earmarked ₹21 crore for research, design and development of new power electronic equipment, while the remaining funds will be used for general corporate purposes.

MV Electrosystems is promoted by Mohit Vohra, Amit Dhawan, Sumit Dhawan, Rahul Dhawan, Sonali Dhawan and Ramendra Pratap Singh. The existing promoter group will continue to manage the company after the IPO.

Ace investor Madhuri Madhusudan Kela held around 5.6% stake in the company at the time of the DRHP filing, making MV Electrosystems one of the few upcoming IPOs backed by a well-known public market investor.

As per SEBI regulations, up to 75% of the issue has been reserved for Qualified Institutional Buyers (QIBs), while 15% has been allocated to Non-Institutional Investors (NIIs) and the remaining 10% to Retail Individual Investors (RIIs).

Incorporated in 2009, MV Electrosystems Ltd. designs, develops, assembles and manufactures electrical and power electronics equipment for railway rolling stock. Its product portfolio includes IGBT-based three-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and EMUs, cable protection and management products, and other electrical components, systems and sub-systems.

The company operates in India's rapidly evolving railway sector, which is being driven by broad-gauge electrification, the government's Make in India initiative and the expansion of the rail network, including upcoming high-speed corridors. It follows an integrated business model with in-house design, manufacturing and quality-testing capabilities across its operations.

MV Electrosystems derives its revenue exclusively from the railway rolling stock electronics segment. It designs and manufactures propulsion systems, auxiliary converters, Train Control and Monitoring Systems (TCMS), battery chargers and other onboard electrical equipment for the railway sector.

As of October 31, 2025, MV Electrosystems had an order book of ₹194.96 crore, providing visibility into future revenues through ongoing execution and maintenance contracts.

The company has developed indigenous propulsion systems for modern rolling stock, including products designed for Vande Bharat and other high-speed train applications. This positions it to benefit from India's ongoing railway modernisation and localisation initiatives.

The company's revenue declined in FY24 before recovering in FY25, while profitability remained volatile. MV Electrosystems reported an outstanding order book of ₹207.5 crore from Indian Railways. Revenue from operations stood at ₹17.3 crore for the four months ended July 31, 2025, compared with ₹62.6 crore in FY25 and ₹50 crore in FY24. Net profit rose to ₹1.4 crore in FY25 from ₹65 lakh in FY24.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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