MV Electrosystems IPO GMP Signals 27% Listing Gain as Issue Sees Strong Demand on Day 3; Should You Bid?

The MV Electrosystems IPO is gathering huge investor interest on the third and final day of bidding, with the public issue receiving healthy subscriptions across retail and non-institutional investor (NII) categories. Meanwhile, in the grey market the issue is high on demand trading at a premium of Rs. 115 hinting at a strong listing debut.

MV Electrosystems IPO Subscription Status Day 3

Since the beginning of Bidding on July 30, The MV Electrosystems IPO has been receiving positive response . Even on the final day of bidding, the IPO was subscribed 12.14 times overall to today as of 11:30 am.

In the retail category the subscription stood at 0.49 times. While the QIB and NII was subscribed 0.98 times and 28.90 times respectively.

MV Electrosystems IPO GMP Today

According to investorgain website, the MV Electrosystems IPO GMP today stands at Rs. 115 as of 11:30 AM on August 3rd.

If we consider the upper price band of Rs. 425 per share, the estimated listing price is around Rs. 540 per share, combining both GMP & issue price. This suggests an expected listing gain of nearly 27.06% over the issue price, if the current grey market trend sustains until listing.
It should also be noted that the Grey Market Premium (GMP) is not an official market indicator hence it does not guarantee actual listing performance.

MV Electrosystems IPO Details

The Rs. 290 crore MV Electrosystems IPO is an entirely fresh issue of approximately 0.68 crore equity shares. There is no offer-for-sale (OFS) component. The IPO opened for subscription on July 30th and will close on August 3rd.

The allotment of shares is expected on Auguts 4th and the issue will hit the exchanges on Augiust 6th listing on both NSE & BSE.

MV Electrosystems IPO Price Band and Lot Size

The company has fixed the price band at Rs .400-Rs. 425 per equity share. Retail investors can bid for a minimum of one lot comprising 34 shares, requiring a minimum investment of Rs. 14,450 based on the upper end of the price band.

Should Investors Track the GMP?

4 out of 9 brokerage firms which reviewed the IPO have given a subscribe call to the issue, considering the company's financials, business fundamentals, industry outlook, and also valuation.

As per SBI Capital Securities Report, "MVEL stands as a key player within India's rail infrastructure transition by virtue of its indigenous in-house design & development of 3-Phase Propulsion Equipment. As Indian Railways progresses towards modernisation, the need for advanced power conversion systems, including propulsion equipment, will continue to prevail.

Further, the mobilisation of IPO proceeds towards working capital requirements shall aid in reporting improved performance starting 2HFY27 as the company aims to increase its propulsion system production from 20 sets per month currently to around 50 sets per month."

"Hence, considering MVEL's robust growth prospects, we recommend investors to SUBSCRIBE to the issue for a long-term investment horizon," the report further added.

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