IPO Centre - New Issue Monitor
Component supplier to IR
MV Electrosystems, founded by Mohit Vohra, is a technology-driven company 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. The primary customer of the company is Indian Railways or the OEM suppliers to the Indian Railways.
Over the period, with an integrated approach that combines mechanical, electrical, and software engineering, the company has successfully developed IGBT based 3-Phase Drive Propulsion System that meets stringent performance, safety, and regulatory requirements specified by Railways. Further it has received developmental orders for (i) one (1) set of IGBT based 3-Phase Drive Propulsion Equipment with Composite Converter (ii) one (1) set of 2x500 KVA IGBT based Hotel Load Converter for 3-Phase Electric Locomotives WAP-7 locos and (iii) letter of acceptance from Modern Coach Factory (MCF) for Design, Development, Manufacture, Supply, Testing and Commissioning of Microprocessor Controlled IGBT based 3 Phase Propulsion Equipment for MEMU (On Board - 12 Car Rakes).
The IGBT Based 3-Phase Drive Propulsion equipment ('3-Phase Propulsion Equipment') for 6000 HP Locomotive that was developed in house includes traction converter-inverter system, auxiliary converter, vehicle control units / train control management system and driver display units. And the same was approved CLW, Indian Railways on Sep 15, 2025. Such developments requires expertise in multiple domains including, Electrical Engineering, Embedded Design, Software Development, Mechanical Engineering, Thermal Design & Instrumentation. This will lead the way for the company to create various other energy efficient railway power conversion systems. Similarly Vehicle Control Unit of the company developed high performance microprocessor based modular systems that provide complete traction and propulsion control of the entire locomotive hauled train with continuous monitoring and extensive fault diagnostics.
With the increasing demand for wide variety of Rolling Stocks in India and several other regions, like High Speed Trains to Shorten Long Distance journeys, High Power Locomotives for Freight Corridors, Low Cost Light Weight Ropeways & Trams for Urban areas, EMU's & Metro Trains and upgradations of existing platforms, the in-house engineering capabilities enable it to reduce dependency on external suppliers for designing, accelerate the induction of these new products in the country and maintain greater control over quality and proprietary intellectual property.
As Indian Railways moves towards increased speed and efficiency of the trains / locomotives, the need for the development of the advanced / new generation power conversion systems including propulsion equipment will continue to be there.
The company has received significant purchase orders aggregating to Rs 7,37.660 crore (excluding GST and AMC) for supply of 450 (four hundred fifty) 3-Phase Propulsion Equipment during the Financial Year ended March 31, 2026. The company has commenced the commercial supplies of 3-Phase Propulsion Equipment to Indian Railways in March 2026. The revenue from supply of 3-Phase Propulsion Equipment in FY26 is about Rs 4.698 crore.
Assembling cum manufacturing facility of the company is based at Village Baghola, Palwal, Haryana, India ('Unit 1') and its operations are supported by the dedicated in-house Research, Design & Development centre based at Faridabad, Haryana, India with team focused on developing energy-efficient propulsion technologies, lightweight systems, and advanced digital control platforms. The R&D Centre of the company has been accorded recognition by Department of Scientific and Industrial Research ('DSIR'), Ministry of Science and Technology, Government of India on June 12, 2026.
With dedicated focus on production of 3-Phase Propulsion Equipment in Unit 1, the company proposes to shift the manufacturing operations for cable protection & interconnected products facility from Unit 1 to the Unit 2 to be set up at the investment property owned by the company at Nangla Bhiku, Tehsil Palwal, District Palwal, Haryana (proposed 'Unit 2').
Signed business Cooperation Agreement (dated August 13, 2025) with PNC Technologies Co. Ltd., South Korea for a period of three years, to collaborate exclusively for the manufacturing, supply and distribution of Automatic Fault Locator system for 25 KV Rail over-head electrification line across the country. This marks its entry into the Rail electrical infrastructure products.
The company, Hansung Heavy Industrial Co Limited (Republic of Korea) and Param Enterprises Private Limited (India) have signed a Consortium Agreement dated July 2, 2026 for participating in the MEMU tender issued by Modern Coach Factory Raebareli, Indian Railways for Design, Development, Manufacture, Supply, Testing and Commissioning of Microprocessor Controlled IGBT based 3 Phase Propulsion Equipment for MEMU (On Board - 12 Car Rakes).
While the company will be responsible for design, development, supply and installation of traction and Auxiliary converter-inter system, Train Control Management System, design supply & co-ordinate the installation and commissioning of complete scheme and specifications of system & specific aggregates / components, and comprehensive maintenance of the system & after sales service support to Indian Railways, the Hansung Heavy Industrial Co Limited will be responsible for design, development and supply of Traction motors and extend complete technical support and training for this item. Param Enterprises Private Limited shall be responsible for on-site installation of the aggregates and equipment inside the coaches.
The consortium between the company, Hansung Heavy Industrial and Param Enterprises have been issued a letter of acceptance for Design, Development, Manufacture, Supply, Testing and Commissioning of Microprocessor Controlled IGBT based 3 Phase Propulsion Equipment for 6 (six) MEMU (On Board - 12 Car Rakes) for an aggregate value of ? 865.46 million and five years comprehensive annual maintenance contract for aggregate value of ? 46.86 million, both excluding GST by Modern Coach Factory, Raebareli.
Continuous focus on development and / or acquisition of new products that are used in conjunction with propulsion equipment in line with the newer opportunities under Indian Railways
Leverage its domain experience and capabilities by continuing to diversify its product base and increase penetration across different global regions & synergetic potential applications like Renewable Energy Projects, Industrial & Commercial Power Conversion Systems, Energy Storage Systems, Electric Mobility & Charging Infrastructure.
In FY26 about 76.16% of revenue from operations come from IR, 15.82% from private sector (other than group companies) and 7.29% from group companies.
The issue and object of the offer
The Issue comprises only of fresh issue of equity shares of Rs 5 face value aggregating up to Rs 290 crore.
Of the net proceeds, the company intends to use Rs 180 crore towards funding long term working capital requirements; Rs 21 crore towards investment in R&D activities for new power electronic equipment and balance towards general corporate purposes.
Strength
Engineering and systems design focused railways company with strong in-house research, design & development capabilities for highly engineered and complex railway systems, combining precision and domain expertise.
One among the global players that possess their proprietary technology for rail propulsion equipment and this was achieved with in-house development of 3-Phase drive Propulsion Equipment and subsequent approval by CLW.
Executable orders in hand for 3-Phase Propulsion Equipment as on June 30, 2026 stand at Rs 1167.395 crore comprising Rs 1087.535 crore of supply order and Rs 79.86 crore of AMC order. Order book under developmental category for Microprocessor Controlled IGBT based 3 Phase Propulsion Equipment for MEMU (On Board - 12 Car Rakes), Composite Converter and Hotel Load Converter from Modern Coach Factory, Raebareli stands at Rs 111.77 crore.
Scalable business model with focus on high-value products and opportunity to enter into rolling stock manufacturing capabilities
Focus on developing in-house intellectual property rights and Make in India.
Operates in a safety critical & complex railway electric equipment industry that has high barriers due to RDSO product approvals etc.
Long-standing and deep relationship with Indian Railways
Weakness
Indian Railway, through its various units or workshops, has been the single largest customer accounting for 76.72%, 72.96% and 67.80% of its revenue from operations in FY26, FY25 and FY24 respectively. Any delay in tenders issued by Indian Railways or increase in competition will impact the business of the company.
Concentration of all the manufacturing and R&D facilities in the state of Haryana, India.
Have experienced negative cash flows from operating activities during the Financial Year ended March 31, 2026 and March 31, 2024
Restriction or delay or non-availability at fair price of raw material or electronic components that are imported from countries, such as China, UK, Hong Kong & Singapore etc will impact the operations.
There have been certain discrepancies in the past in relation to statutory compliances.
Anonymous complaints (Pollution Control Certificate submitted by the Company is forged / fabricated etc) have been received against the company subsequent to the filing of the Draft Red Herring Prospectus.
Success significantly depends on its ability to develop and commercialize new electrical equipment & power electronics systems for usage in railways industry, in India and overseas market.
Technological advancements in railway propulsion and power electronics systems could render existing products less competitive or obsolete.
Have entered into, and will continue to enter into, related party transactions that may involve conflict of interest.
Valuation
Consolidated re-stated revenue stood lower by 21% to Rs 49.43 crore in FY 2026. The fall in revenue was primarily on account of lower sale of goods to the Indian Railways and the commercial supply of 3-Phase Propulsion Equipment to IR started only in Mar 2026. But with the OPM turn negative 20.8% against 11% in corresponding previous period, the operating loss was Rs 10.31 crore against a profit of Rs 6.92 crore. Eventually, Pat after MI was a loss of Rs 12.63 crore against a profit of Rs 1.40 crore.
On expanded equity (at the upper price band), the EPS for FY2026 was -4.6. The company quotes at a P/BV of 3.3 times.
There are no listed companies of similar size of operations and revenue that holds proprietary ownership for the technical design and in-house developed IGBT based 3-Phase Drive Propulsion Equipment. However Hind Rectifiers has developed such propulsion equipment in-house, as per publicly available disclosure, which is pending for requisite approval(s). Apart from Hind Rectifiers Limited, another unlisted Company, i.e. Medha Servo Drives Private Limited, holds proprietary ownership for the technical design and in-house developed IGBT based 3-Phase Drive Propulsion Equipment and also supplies the same to Indian Railways. Hind Rectifiers quotes at a PE of 117.2 times of its FY26 EPS.
| MV Electrosystems : Re-stated Consolidated Financials |
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| 2403 (12) | 2503 (12) | 2603 (12) | |||
| Sales | 49.96 | 62.64 | 49.43 | |||
| OPM (%) | 11.6 | 11.0 | -20.8 | |||
| OP | 5.80 | 6.92 | -10.31 | |||
| Other income | 0.61 | 2.00 | 0.36 | |||
| PBIDT | 6.41 | 8.92 | -9.94 | |||
| Interest | 2.47 | 3.04 | 3.49 | |||
| PBDT | 3.94 | 5.87 | -13.43 | |||
| Depreciation | 2.84 | 3.47 | 3.37 | |||
| PBT | 1.10 | 2.40 | -16.80 | |||
| EO Exp | 0.08 | -0.16 | 0.00 | |||
| PBT after EO | 1.02 | 2.56 | -16.80 | |||
| Tax | 0.46 | 1.16 | -4.17 | |||
| PAT | 0.56 | 1.40 | -12.63 | |||
| Share of Profit from Associates | 0.00 | 0.00 | 0.00 | |||
| Minority Interest | 0.00 | 0.00 | 0.00 | |||
| Net profit after MI | 0.56 | 1.40 | -12.63 | |||
| EPS (Rs)* | 0.2 | 0.5 | -4.6 | |||
| * on post IPO fully dilluted equity (on upper price band) of Rs 13.64 crore. Face Value: Rs 5 | ||||||
| EPS is calculated after excluding EO and relevant tax | ||||||
| Figures in Rs crore | ||||||
| Source: Capitaline Corporate database | ||||||
| MV Electrosystems : Issue Highlights |
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| Fresh Issue (Rs crore) | 290 |
| Offer for sale (in nos.) | 0 |
| Price band (Rs.) ** |
|
| Upper | 425 |
| Lower | 400 |
| Post-issue equity (Rs crore) | |
| in Upper price band | 13.64 |
| in Lower Price Band | 13.85 |
| Post-issue promoter (including promoter group) stake (%) | |
| in Upper price band | 57.68 |
| in Lower Price Band | 56.79 |
| Minimum Bid (in nos.) | 34 |
| Issue Open Date | 30-07-2026 |
| Issue Close Date | 03-08-2026 |
| Listing | BSE, NSE |
| Rating | 46/100 |
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