GV Electricals IPO opens at ₹130 cap as margins drive grey market premium
GV Electricals launched its ₹42.25 crore IPO on Friday, drawing modest early demand while a sharp doubling in EBITDA margins fuels a healthy grey market premium ahead of its BSE SME listing.
GV Electricals opened its ₹42.25 crore initial public offering on Friday, aiming to capitalise on strong operational leverage in India's power distribution sector. The offer, managed by Seren Capital, runs until August 4 with a price band of ₹123 to ₹130 per share. Bids must be placed in lots of 1,000 shares.
Early demand points to a split market reception. By mid-morning on day one, the overall book was covered just 21%, with 442,000 shares bid for against 2.08 million on offer. Retail investors accounted for the bulk of early interest, subscribing to 36% of their allotted portion, while non-institutional investors stood at 16%. Qualified institutional buyers had yet to place bids.
Despite the tepid institutional start, the grey market is pricing in a robust debut. The IPO's premium sits at ₹25, trending upward from a range of ₹18 to ₹25 over the past five sessions. This implies an estimated listing price of ₹155 per share on the BSE SME platform, representing a 19.2% premium over the upper price band. Shares are expected to be allotted on August 5 and list on August 7.
That premium is underpinned by the company's recent financial trajectory. For FY26, GV Electricals reported a 124.5% surge in net profit to ₹10.5 crore, driven by a doubling of EBITDA to ₹17.04 crore. While revenue rose 19.2% to ₹156.4 crore, the EBITDA margin expanded 477 basis points to 10.9%, signalling meaningful improvements in operating efficiency.
Incorporated in 1985, the company provides operation and maintenance services to electricity distribution utilities across three verticals: network O&M, infrastructure development, and metering. The proceeds from the fresh issue will be directed toward strengthening its balance sheet. Of the ₹39 crore raised via new shares, ₹22 crore will fund working capital requirements and ₹6 crore will repay borrowings, with the remainder earmarked for general corporate purposes.
An additional ₹3.25 crore is being raised through an offer for sale by promoters Jawed Akhtar and Sunil Lakshman Vatsa, with proceeds going directly to the selling shareholders.
