MV Electrosystems Files DRHP to Raise ₹290 Crore via Fresh IPO

#MVElectrosystems #IPO #IndianRailways #Electrification #MakeInIndia #PowerElectronics #SEBI

Chandigarh: Haryana-based MV Electrosystems, a technology-driven manufacturer of electrical and power electronics equipment for the railway rolling stock, has filed its preliminary papers with SEBI to launch an Initial Public Offering (IPO) to raise ₹290 crore.

The public issue will be an entirely fresh issue of shares, meaning all proceeds will flow directly into the company, with no Offer-for-Sale (OFS) component. Sundae Capital Advisors has been appointed as the merchant banker for the IPO.

⚙️ Use of IPO Proceeds

MV Electrosystems plans to utilize the funds raised primarily to strengthen its operational and research capabilities, capitalizing on the government’s focus on railway modernization. The intended uses include:

• ₹180 crore: Funding the company’s long-term working capital requirements.

• ₹21 crore: Investment in research, design, and development activities for new power electronic equipment.

• Remainder: Allocated for general corporate purposes.

🏭 Products and Industry Drivers

MV Electrosystems specializes in high-technology products essential for modernizing the Indian Railways network, which is rapidly moving towards 100% broad-gauge electrification. The company’s key product portfolio includes:

• IGBT-based 3-phase drive propulsion equipment for electric locomotives.

• Switchgear panels for railway coaches and Electric Multiple Units (EMUs).

• Cable protection & management products and other electrical components/sub-systems.

The company is strategically positioned to benefit from major government initiatives like Make-in-India procurement mandates and the expansion of the network with the introduction of high-speed and efficient trains. MV Electrosystems expects the need for advanced power conversion systems and propulsion equipment to continue growing as Indian Railways increases the speed and efficiency of its rolling stock.

📊 Financial Snapshot

The company’s recent financial performance has shown inconsistency, although the latest full fiscal year recorded significant profit growth:

While the company showed strong profit and revenue growth in FY25 compared to FY24 (revenue increased 25.4%), the performance in the recent four-month period ending July 2025 resulted in a loss. MV Electrosystems competes with listed peers such as Hind Rectifiers.

#MVElectrosystems #IPO #IndianRailways #Electrification #MakeInIndia #PowerElectronics #SEBI