MV Electrosystems IPO sees 111.27 times subscription, led by strong NII and retail demand

The initial public offering (IPO) of MV Electrosystems garnered significant investor interest, with the issue being subscribed 111.27 times by the final bidding day, according to the source dated June 26, 2023. This strong demand was driven by robust interest from both non-institutional and retail investors. Notably, the non-institutional investors' allocation was subscribed 279.10 times, while the retail investors' portion received 154.94 times more subscriptions.

The qualified institutional buyers' segment, however, saw only 12.80 times of demand. Prior to the IPO, MV Electrosystems managed to raise ₹130.5 crore from anchor investors. The company proceeded to allot 30.7 lakh equity shares to 14 funds at ₹425 per share, which was the upper limit of the price band, as reported on the BSE website.

The IPO is priced within the range of ₹400-425 per share and represents a fresh issue of equity shares amounting to ₹290 crore. The proceeds from the IPO are intended to be utilized for business expansion and other corporate objectives, as detailed in the offer document.