Haryana-based MV Electrosystems, which manufactures electrical & power electronics equipments for railway rolling stock, has filed preliminary papers with the SEBI to raise Rs 290 crore via initial public offering (IPO).
The IPO comprises of entirely fresh issue with no offer-for-sale component.
The company plans to tap capital markets for funding its long-term working capital requirements amounting to Rs 180 crore, and investment of Rs 21 crore for research design and development activities for new power electronic equipment. The remainder funds will be used for general corporate purpose.
MV Electrosystems is a technology-driven company manufacturing electrical & power electronics equipments like IGBT based 3-phase drive propulsion equipment for electric locomotives, switchgear panels for railway coaches & EMU’s, cable protection & management products and electrical components, systems & sub-systems for the railway rolling stock.
The Central Government has been focussing on the 100 percent electrification of broad-gauge routes, Make-in-India procurement mandates, and the expansion of railway network, including introduction of high speed trains.
Hence, "as Indian Railways moves towards increased speed and efficiency of the trains and locomotives, the need for the development of the advanced and new generation power conversion systems including propulsion equipment will continue to be there," MV Electrosystems said.
The company that competes with listed peer Hind Rectifiers has recorded loss of Rs 4.2 crore on revenue of Rs 17.3 crore for four months period ended July 2025, while there was inconsistency in numbers of recent fiscal years.
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Profit grew by 152 percent to Rs 1.4 crore in the financial year ended March 2025, compared to Rs 0.6 crore in previous year. Revenue in the same period increased 25.4 percent to Rs 62.6 crore, up from Rs 50 crore. However, there was 26.6 percent and 53.2 percent decline in bottomline and topline in fiscal 2024, respectively.
Sundae Capital Advisors is appointed as the merchant banker for the MV Electrosystems IPO.
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