New Delhi–based MV Electrosystems files DRHP for IPO

•  The IPO is complete fresh issue aggregating to ₹ 2,900 million

• Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela, has a 5.6% stake in the company

New Delhi–based MV Electrosystems has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).

The offer, with a face value of Rs 5 per equity share, consists of a fresh issue of up to ₹ 2,900 million.

Madhuri Madhusudan Kela, wife of well-known investor Madhusudan Kela, has 11,50,000 shares or 5.6% stake in the company as on the date of the Draft Red Herring Prospectus.

The proceeds from its fresh issue worth ₹1800 million will be for funding long-term working capital requirements of the company, ₹ 210 million for investment in research, design and development activities for new power electronic equipment, and general corporate purposes.

The issue is being made through the book-building process, in line with SEBI ICDR Regulations, with up to 75% reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and at least 10% for Retail Individual Investors (RIIs).

Incorporated in 2009, the company 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 and EMU’s, cable protection and management products and electrical components, systems & sub-systems.

With a focus on indigenous innovation and sustainable rail transportation, the company is aligned with national and global goals for self-dependence, rail electrification and decarbonization. On September 15, 2025, the company has received approval from CLW, Indian Railways for its in-house designed and developed IGBT-based 3-phase drive propulsion equipment (3-phase propulsion equipment) which includes traction converter-inverter system, auxiliary converter, vehicle control units / train control management system and driver display units - all designed and developed by the company indigenously to meet international safety and performance standards.

Its vehicle control unit is developed on 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. The company is now a part of the ongoing transformation in India’s rail infrastructure, driven by the government of India’s focus on 100% electrification of broad-gauge routes, make-in-India procurement mandates, and the expansion of railway network, including introduction of high-speed trains.

The in-house design & development of 3-phase propulsion equipment for 6,000 HP Locomotive is a key achievement of the company and it will lead the way for it to create various other energy efficient railway power conversion systems.

The company has also entered into a business cooperation agreement with PNC Technologies Co Ltd., South Korea for a period of three years to collaborate exclusively for manufacturing, supply and distribution of auto fault locator system for 25 KV rail over-head electrification lines across the country. This marks the company’s entry into the rail electrical infrastructure products.

The company’s assembling-cum-manufacturing facilities are based in village Baghola, Palwal, Haryana (unit 1) and its operations are supported by the dedicated in-house research, design and development centre based at Faridabad, Haryana, with a team focused on developing energy-efficient propulsion technologies, lightweight systems, and advanced digital control platform.

The company has the following certifications -

IRIS (International Railway Industry Standard) based on ISO /TS 22163:2017

• ISO 45001:2018

• ISO 14001:2015

• ISO 9001:2015

The company has an outstanding order book of ₹ 2,075.16 million (excluding GST) with the Indian railways.

The company’s revenue from operations was ₹ 172.93 million during the four months ended 31 July, 2025.

The company’s revenue from operations was ₹ 626.37 million during FY25 vis-à-vis ₹ 499.57 million during FY24.

Its net profit was ₹ 14.03 million during FY25 vis – a – vis ₹ 5.57 million during FY24.

Sundae Capital Advisors Private Limited is the book-running lead managers and Kfin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.