MV Electrosystems IPO

About MV Electrosystems IPO

The MV Electrosystems IPO, a mainboard IPO, opens on Thursday, July 30, 2026 and closes on Monday, August 03, 2026. The allotment of shares will take place on Tuesday, August 04, 2026. The credit of shares to the demat account will take place on Wednesday, August 05, 2026. The initiation of refunds will take place on Wednesday, August 05, 2026. The listing of shares will take place on Thursday, August 06, 2026. The equity shares offered through the IPO are proposed to be listed on the BSE and the NSE.

The offer consists of a fresh issue component. The fresh issue will include 68,23,528 shares aggregating up to ₹290 crores. The total number of shares is 68,23,528, aggregating up to ₹290.00 crores.

MV Electrosystems IPO's price band is set at ₹400 to ₹425 per share. The lot size for an application is 34. The minimum amount of investment required by a retail investor is ₹14,450 (34 shares) (based on upper price).

MV Electrosystems is a technology driven company that designs, develops, assembles, and manufactures electrical and power electronics equipment for railway rolling stock, including IGBT-based 3-Phase Drive Propulsion equipment for electric locomotives. It received prototype approval from Chittaranjan Locomotive Works, Indian Railways, on September 15, 2025, and commenced commercial supplies of propulsion equipment in March 2026. As of June 30, 2026, it held an executable order book of 564 3-Phase Propulsion Equipment for the Chittaranjan, Banaras, and Patiala Locomotive Works, aggregating ₹921.64 crores excluding GST and AMC.

Objectives of MV Electrosystems IPO

The MV Electrosystems proposes to utilise the net proceeds of the fresh issue towards the following objects:

• Funding the long term working capital requirements of the company.
  
• Investment in research, design, and development activities for new power electronic equipment.
  
• General corporate purposes.
  

Industry Outlook

India's railway propulsion equipment industry is expanding fast. It grew from USD 561.1 million in CY20 to USD 937.0 million in CY25, a compound annual growth rate of 10.8% over the period. This growth has been driven by large-scale railway electrification, investments in metro networks, and the government's emphasis on modern, energy-efficient transport systems.

The pace now moderates. From CY26P to CY30P, the Indian market is projected to reach USD 1,249.3 million at a 6.0% CAGR, as demand shifts toward advanced propulsion technologies and sustainable rail solutions. Locomotives remain the dominant application, rising from USD 794.5 million in CY25 to a projected USD 1,046.6 million by CY30P.

The global picture reinforces this trend. The worldwide railway propulsion equipment market reached USD 11,983.0 million in CY25, growing at a 7.4% CAGR from CY20, and is projected to reach USD 15,175.7 million by CY30 at a 4.7% CAGR. As a domestic manufacturer of indigenously designed IGBT-based 3-Phase Drive Propulsion equipment approved by Indian Railways, the Company is placed to serve this electrification and Make-in-India demand.

About MV Electrosystems

The Company was incorporated in 2009 to supply components to Indian Railways. It has since expanded into panels, switchboard cabinets, connectors, cable assemblies, cable protection products, and, from 2020, indigenously designed IGBT-based 3-Phase Drive Propulsion equipment for electric locomotives. Indian Railways contributed 76.16% of its revenue from operations in FY 26, underlining a customer base concentrated in the public rail sector.

Its assembling-cum-manufacturing facility (Unit 1) is at Village Baghola, Palwal, Haryana, supported by a dedicated Research, Design & Development Centre at Faridabad, Haryana. Its R&D Centre was recognised by the Department of Scientific and Industrial Research on June 12, 2026.

R&D is central. As of May 31, 2026, the R&D Centre had 45 permanent employees, about 21.84% of the total permanent workforce, including 35 engineers and 2 Ph.D. holders. Engineering, research, design, and development spend was ₹7.90 crores in FY26, or 15.97% of revenue from operations.

Strengths of MV Electrosystems

• Strong in-house engineering, research, design and development capabilities for complex railway propulsion systems.
• High entry barriers driven by precision engineering, safety-critical technology and proprietary design expertise.
• Long-standing relationship with Indian Railways supported by repeat orders and RDSO-approved products.
• Experienced promoter and management team with deep expertise in railway engineering, manufacturing and product development.
• Skilled engineering workforce with strong design, innovation and execution capabilities supporting continuous product development.
• Indigenous design removes royalty and technology-fee costs, giving a cost advantage over multinational suppliers and domestic firms dependent on foreign collaborators.

Risks of MV Electrosystems

• Significant dependence on Indian Railways and a limited customer base for revenue generation.
• Loss of key customers or reduction in orders could adversely impact financial performance.
• Business operations are subject to various statutory and regulatory approvals, and any delays or non-compliance may affect operations.
• Manufacturing, assembly, and R&D facilities are concentrated in Haryana, increasing exposure to regional risks.
• Any disruption at the Haryana facilities could adversely affect production, operations, and cash flows.

Anchor Investor Bidding Date

Wednesday, July 29, 2026

IPO Registrar and Book Running Lead Managers

IPO Registrar
KFin Technologies Limited
Phone: 040-79615565
Email: mvelectrosystems.ipo@kfintech.com

Book Running Lead Manager
Sundae Capital Advisors Private Limited

MV Electrosystems Contact Details
Plot No. 7, Site No 2, 14/3, Mathura Road, Faridabad - 121 003, Haryana, India.
Phone: +91 92 1199 9711
E-mail: cs@mvelectrosystems.com

MV Electrosystems Business Model

The company earns its revenue through the design, development, assembly, and manufacture of electrical and power electronics equipment for railway rolling stock, sold primarily to Indian Railways on a purchase-order and tender basis. Its flagship product line is the indigenously developed IGBT-based 3-Phase Drive Propulsion equipment, supplemented by switchgear panels, connectors, cable assemblies, and cable protection products.

Indian Railways contributed 76.16% of revenue from operations in FY26, with the balance from private-sector and group-company customers. In-house design lets the Company avoid royalty and technology-fee outflows, and its order book is anchored by long-cycle propulsion contracts that include multi-year annual maintenance components.

MV Electrosystems Growth Trajectory

MV Electrosystems Limited's Total Income for FY26 was ₹49.79 crores, whereas in FY25 and FY24 it was ₹64.64 crores and ₹50.57 crores, respectively.

The Profit After Tax for FY26 was ₹(12.63) crores, whereas in FY25 and FY24 it was ₹1.40 crores and ₹0.56 crores, respectively.

Their EBITDA for FY26 was ₹(9.94) crores, whereas in FY25 and FY24 it was ₹8.92 crores and ₹6.41 crores, respectively.

MV Electrosystems Market Position

The Company supplies electrical and power electronics equipment directly to multiple units and workshops of Indian Railways, and its propulsion equipment is approved by Chittaranjan Locomotive Works and RDSO. Per the RHP, It is one of only two Indian companies, alongside Hind Rectifiers Limited, to have developed an in-house IGBT-based 3-Phase Drive Propulsion System.

As of 31 March 2026, the company's Total Income, Profit After Tax, and EBITDA were ₹49.79 crores, ₹(12.63) crores, and ₹(9.94) crores, respectively.

How to apply for MV Electrosystems IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.