The initial public offering (IPO) of MV Electrosystems witnessed strong demand from both retail and non-institutional investors on its opening day of bidding on July 30.
The IPO, which will remain open for subscription until August 03, received bids for 1.45 crore shares against the 37.52 lakh shares on offer, resulting in an overall subscription of 3.87 times by the end of Day 1, according to exchange data.
Among the investor categories, the retail investor segment attracted the highest interest, getting subscribed 12.68 times, followed by the non-institutional investors (NII) at 4 times. The qualified institutional buyers (QIB) portion was also subscribed by 0.87 times.
MV Electrosystems IPO details
The ₹290-crore CSM Technologies IPO is entirely a fresh issue of equity shares with a face value of ₹05 each. The public offering does not include any offer-for-sale (OFS) component, meaning the entire proceeds from the issue will accrue to the company.
At the upper end of the price band of ₹425, MV Electrosystems is expected to command a post-issue market valuation of approximately ₹1159 crore.
The IPO has reserved up to 75% of the issue for qualified institutional buyers (QIBs), not less than 15% for non-institutional investors (NIIs), and not less than 10% for retail investors.
MV Electrosystems IPO allotment and listing details
Tentatively, the basis of allotment for the MV Electrosystems IPO is expected to be finalised on August 04. The company is likely to initiate refunds on August 05, while shares are expected to be credited to the demat accounts of successful applicants on the same day.
The shares of MV Electrosystems are scheduled to be listed on both the BSE and NSE on August 06.
MV Electrosystems GMP signals a strong listing
As of today, the grey market premium (GMP) for MV Electrosystems stood at ₹120 per share, indicating the stock could list above its issue price. Based on the prevailing GMP and the upper rice band, the estimated listing price works out to around ₹545 per share, implying a premium of nearly 28%.
The GMP reflects the difference between an IPO’s issue price and its expected listing price in the unofficial market. However, investors should note that GMP is only an early indicator and should not be considered the sole basis for an investment decision.
About MV Electrosystems
The company is engaged in engaged in the design, development, assembly and manufacturing of electrical & power electronics equipment used in railway rolling stock including 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.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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