MV Electrosystems IPO Day 3: Grey Market Price Increases with Strong Demand

The MV Electrosystems IPO began its third and final bidding day on August 3, giving investors one last chance to apply before the offer closes. The IPO opened on July 30, with shares priced between ₹400 and ₹425, aiming to raise ₹290 crore through a new equity share issue. Despite some ups and downs in the grey market, the IPO showed strong interest from investors. By 10:18 AM on Day 3, the overall subscription rate was 15.42 times, driven by high demand from retail investors at 43.19 times and non-institutional investors at 25.89 times, while the qualified institutional buyers (QIB) portion was subscribed 0.92 times. The grey market premium (GMP) was ₹120 per share, indicating positive market sentiment and strong subscription rates.

Brokerage firms have mixed opinions about the IPO. GEPL Capital, Ventura Securities, and SBI Capital Securities recommended subscribing to the IPO, citing the company's strong order book, domestic railway technology, research capabilities, and growth potential. In contrast, Swastika Investmart advised investors to avoid the IPO, while HDFC Securities, Axis Capital, and Arete Securities did not provide ratings. The IPO allotment is expected to be finalized on August 4, with shares anticipated to be listed on the BSE and NSE on August 6. KFin Technologies is the registrar for the issue, and Sundae Capital Advisors is the lead manager.