Upcoming IPO: MV Electrosystems Files DRHP With SEBI to Raise Funds

MV Electrosystems, backed by Madhuri Madhusudan Kela, has moved a step closer to its public debut after filing the Draft Red Herring Prospectus (DRHP) with SEBI. 

As per the filing date, Madhuri Kela holds 1.15 million shares, translating into a 5.6% stake in the New Delhi-based company. 

Key Development: IPO Structure 

The proposed IPO consists of a fresh issue of equity shares aggregating up to ₹290 crore, with a face value of ₹5 per share. The issue will be launched through the book-building route under SEBI’s ICDR Regulations.  

As mandated, up to 75% of the offer will be reserved for qualified institutional buyers, not less than 15% for non-institutional investors and at least 10% for retail investors. The company plans to list its shares on the BSE and NSE. 

Statements & Utilisation of Proceeds 

According to the DRHP, ₹180 crore from the net proceeds will be deployed towards long-term working capital requirements, while ₹21 crore is earmarked for research, design and development of new power electronic equipment.  

The remaining funds will be used for general corporate purposes. Sundae Capital Advisors Pvt Ltd will act as the book-running lead manager and Kfin Technologies Ltd will serve as registrar. 

About the Company 

Incorporated in 2009, MV Electrosystems specialises in designing and manufacturing power electronics and electrical systems for railway rolling stock. Its product portfolio includes propulsion systems, switchgear panels and cable management solutions.  

The company recently received approval from Chittaranjan Locomotive Works for in-house designed propulsion equipment, aligning with the government’s focus on electrification and self-reliance.  

The firm operates manufacturing facilities in Haryana, backed by an R&D centre in Faridabad. MV Electrosystems reported an order book of ₹207.5 crore from Indian Railways and delivered net profit of ₹1.4 crore in FY25 compared with ₹65 lakh in FY24. 

Read More: SoftBank-Backed Meesho Plans To Raise $606 Million Through IPO! 

Conclusion 

The IPO comes at a pivotal time for India’s rail electrification and manufacturing push, positioning MV Electrosystems to benefit from strong sectoral demand. With growing orders, expanding product capabilities and a strategic focus on indigenous technology, the listing could mark the next phase of scale and visibility for the company. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.