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MV Electrosystems IPO priced for subscription July 30 to Aug 3
The IPO will raise up to ₹290 crore through a fresh equity issuance, with proceeds earmarked for working capital and power electronics R&D.
MV Electrosystems Ltd. plans an initial public offering worth up to ₹290 crore that opens for subscription on July 30 and closes on August 3. The company has set a price band of ₹400 to ₹425 per share, with share allotment expected on August 4 and a tentative listing on the NSE and BSE on August 6, LiveMint Markets reported.
The IPO comprises only a fresh issue of equity shares, with no Offer for Sale, meaning all proceeds will go to the company. LiveMint Markets said retail investors can bid for a minimum of 34 shares, which would require an investment of ₹14,450 at the top of the price band.
Use of funds includes ₹180 crore from net proceeds for long-term working capital, and ₹21 crore earmarked for research, design and development of new power electronic equipment. The remainder will be used for general corporate purposes, according to LiveMint Markets.
The issue reserves up to 75% for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 10% for Retail Individual Investors, the outlet added. MV Electrosystems designs, develops, assembles, and manufactures electrical and power electronics equipment for railway rolling stock, including propulsion systems for electric locomotives and switchgear panels for railway coaches and EMUs.