Ace investor Madhusudan Kela is reaping strong returns as the shares of MV Electrosystems rallied more than 100% from its IPO price in just two months since their market debut.
When MV Electrosystems filed its draft red herring prospectus (DRHP) last November, the shareholding pattern showed that Madhuri Madhusudan Kela, wife of Madhusudan Kela, owned 5.6% stake in the company. According to data on the company’s shareholding pattern as on September 30, 2026, Madhuri Kela held 11.5 lakh shares or 4.22% stake in the company, with the capital base addition following the fresh issue component of the IPO making her stake in the company appearing to have reduced.
MV Electrosystems shares made a strong debut on Dalal Street in August, listing with a premium of over 22% over the IPO price at Rs 520 apiece on NSE. Following the strong market debut, the shares of the company jumped further, rallying over 86% in a little over a month to hit a record high of Rs 970 apiece earlier this week.
At the record high price, Kela’s stake in the company would be worth Rs 111.55 crore. The exact buying price cannot be ascertained, but RHP revealed Madhuri Kela was allotted 5.75 lakh shares during a private placement round in October 2025 at an issue price of Rs 547.
Also read | MV Electrosystems shares list at 22% premium over IPO price on NSE, BSE
Founded in 2009, MV Electrosystems designs, develops, assembles, and manufactures electrical and power electronic equipment primarily for railway rolling stock applications. The company’s product portfolio includes IGBT-based three-phase drive propulsion systems for electric locomotives, switchgear panels for railway coaches and EMUs, cable protection and management systems, along with a range of electrical equipment and sub-systems.
The company operates in a sector expected to benefit from India's ongoing railway modernisation initiatives, including broad-gauge electrification, the Make in India programme, network expansion, and increasing investments in high-speed rail infrastructure. These long-term trends are expected to support sustained demand for advanced railway electrical systems and power electronics, providing growth opportunities for the company.
Why caution is warranted?
Following the listing at 22% premium, Shivani Nyati, Head of Wealth at Swastika Investmart, noted that investors should also evaluate the company’s recent financial performance before making further decisions.
“MV Electrosystems delivered a strong listing with a 22% premium, indicating positive investor sentiment. However, the company reported weak FY26 performance, with revenue declining around 21% year-on-year and a net loss of Rs 12.6 crore. The investment story now depends on improving execution and returning to profitable growth,” Nyati said.
Also read | Why is market rallying today?
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
