Faridabad: The initial public offering (IPO) of railway electrical equipment manufacturer, MV Electrosystems Ltd has seen a strong response from investors on the final day of subscription. Driven by high demand from non-institutional and retail investors, the grey market premium (GMP) has held at ₹115 per share, about 27% more than the issue price.
As per reports, the QIB section of the issue has been subscribed 4.08 times, while the NII and Retail investor portion has been subscribed 80.21 times and 39.30 times respectively. The issue, which came with a price band of ₹400-425 with a minimum lot size of 34 shares, required retail investors to invest at least ₹14,450 for one lot. MV Electrosystems is looking to raise ₹290 crore through the markets.
The share allotment process will be finalized by Tuesday, August 4, with the company listing on the BSE and NSE by August 6.
About MV Electrosystems
Founded in 2009, MV Electrosystems designs and manufactures electrical equipment for railways rolling stock, and is eligible for tenders issued by the Indian Railways. It has indigenously developed an IGBT-based 3 phase propulsion system, which has been approved by the railways as well. The company aims to use the IPO proceeds to meet its working capital requirements even as it has a strong order book.
Besides this, MV Electrosystems is also looking to enter the rolling stock manufacturing business, as it looks to expand its manufacturing capabilities while reducing its operating costs.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
