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MV Electrosystems IPO GMP points to possible 25% listing premium
The electronics and power equipment maker’s ₹290 crore fresh issue opens 30 July and is expected to list on 6 August on the BSE and NSE.
MV Electrosystems’ initial public offering is set to open for public subscription on 30 July and close on 3 August, with the book build priced in the ₹400-₹425 band, according to LiveMint Markets. The issue is a fresh sale of 68 lakh shares, aiming to raise ₹290 crore.
LiveMint Markets reports that grey market activity remains firm, with an MV Electrosystems IPO GMP of ₹106 on Wednesday morning, implying a potential 25% premium to the issue price at listing. The subscription period ends on 3 August, with share allotment expected to be finalized on 4 August and credits into demat accounts expected on 5 August.
The company plans to reserve 75% of the net issue for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The IPO lot size is 34 shares, with retail investors able to invest from one lot, requiring a minimum of ₹14,450 at the upper price of ₹425, up to a maximum of 13 lots for ₹1,87,850.
Proceeds will be used for long-term working capital needs, research and design and development for new power electronic equipment, and general corporate purposes. LiveMint Markets also notes that the firm designs, develops, assembles and manufactures electrical and power electronics equipment used in rail, citing India’s rail infrastructure transition as a key demand driver.