New Delhi: Engineering and technology company MV Electrosystems on Monday set a price range of Rs 400-425 per share for its proposed Rs 290 crore initial public offering (IPO). The company said that after listing at the upper end of the price band, its market valuation is estimated to be around Rs 1,160 crore. The public issue of the company will be entirely based on sale of new shares and there will be no component of Offer for Sale (OFS). This IPO will open for subscription on July 30 and will close on August 3.
The funds raised from the fresh shares will be used to meet long-term working capital requirements, invest in research, design and development activities for new power electronic components and for general company functioning. MV Electrosystems is a technology based company engaged in designing, developing, assembling and manufacturing of electrical and power electronics components used in railway coaches and engines. 75 per cent of the IPO has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and 10 per cent for retail investors. The company’s shares are proposed to be listed on BSE and NSE on August 6.