Last Updated on February 25, 2026 by Rajat Bhati
Rail propulsion tech player MV Electrosystems pre-IPO round offers a fascinating look into the valuation trajectory of a homegrown high-tech firm. As the company prepares for its INR 290-crore IPO, a recent secondary share sale has set a significant pricing benchmark, reflecting a sharp valuation jump in just four months. The company has already filed its DRHP with the Securities and Exchange Board of India on 27 November 2025 and is awaiting approval.
Here is a breakdown of the MV Electrosystems pre-IPO dynamics and the broader investment thesis.
MV Electrosystems Pre-IPO Round
MV Electrosystems has seen a secondary transfer of 3,75,000 equity shares at a price of INR 370 per share. The transaction involves the company’s core leadership—Mohit Vohra and Amit Dhawan (Promoters)—divesting a portion of their holdings to Raghav Investment Private Limited. This “exit-to-entry” maneuver effectively values the pre-IPO round at approximately INR 13.88 crore.
To understand the true magnitude of this price discovery, one must look at the capital restructuring that occurred in late 2025:
- August–October 2025: Investors like Raghav Investment and Madhuri Madhusudan Kela entered via private placements at INR 547 per share (Face Value: INR 10).
- November 2025: The company executed a 1:2 stock split, sub-dividing the INR 10 face value shares into INR 5 face value shares.
- The Math: This split brought the effective entry cost for these early investors down to INR 273.50 per share.
- The Current Benchmark: The recent secondary sale at INR 370 per share represents a 35.3% premium over the adjusted price from just four months ago.
This pricing suggests that institutional appetite for “Atmanirbhar” railway tech is decoupling from the company’s current modest profitability, focusing instead on its massive order book.
MV Electrosystems Pre-IPO: Investment Thesis
MV Electrosystems is not only an electrical components maker; it is one of the few domestic players to break into the IGBT-based 3-Phase Drive Propulsion market—a high-barrier segment historically dominated by global giants like Alstom, Medha, and Siemens.
MVEL is sitting on a robust pipeline. As of the DRHP filing, the company has an order book for 122 propulsion equipment sets valued at roughly INR 196.5 crore. With the Indian Railways moving toward “Integrated Propulsion Kits” rather than piecemeal components, MVEL’s ability to provide end-to-end systems (loco-propulsion, switchgear, and control panels) positions it as a preferred indigenous vendor.
Manufacturing & R&D Scalability
- Unit 1 (Palwal): Already operational and certified for propulsion systems.
- Unit 2 (Nangla Bhiku): Under development to scale serial production post-prototype clearance.
- Vertical Integration: The company is installing its own SMT (Surface Mount Technology) lines for PCB assembly, reducing dependence on external vendors and improving margins.
MV Electrosystems: Financials
The financial snapshot reveals a company in a heavy transition phase:
- Revenue Recovery: After a dip in FY24 (INR 49.96 Cr), FY25 saw a bounce back to INR 62.64 Cr.
- Margins: While EBITDA margins are healthy at ~14%, the bottom line remains thin (PAT of INR 1.4 Cr in FY25) due to high R&D and expansion costs.
- IPO Purpose: The INR 290 crore fresh issue is strictly growth-oriented, with INR 180 crore earmarked for working capital and INR 210 crore (including internal accruals/excess) for R&D.
Final Words
While the pre-IPO round at INR 370 per share shows “smart money” is bullish, MVEL faces the classic challenges of a capital-intensive engineering firm. MV Electrosystems is a pure-play bet on the modernisation of Indian Railways. The jump from an effective price of INR 273.5 to INR 370 in the secondary market indicates that investors are willing to pay a premium for a “Make in India” technology leader.
