GV Electricals will launch its initial public offering on July 31 to raise ₹42.25 crore. The company provides power infrastructure services and plans to use the fresh funds to repay debt and support working capital needs. The issue will remain open for subscription until August 4.
Detailed Coverage
Delhi-based power infrastructure firm GV Electricals has announced the launch of its initial public offering (IPO), scheduled to open for subscription on July 31. The company has fixed its price band between ₹123 and ₹130 per share. Investors looking to participate can subscribe to the issue until it closes on August 4.
Fundraising and IPO Structure
The total issue size is valued at ₹42.25 crore. This consists of a fresh issue of 30 lakh shares aimed at raising ₹39 crore, along with an offer-for-sale (OFS) of 2.5 lakh shares worth ₹3.25 crore. Through the OFS, promoters Jawed Akhtar and Sunil Lakshman Vatsa will each sell 1.25 lakh shares. The anchor book for the issue will open for one day on July 30. Following the close of the subscription period, the company expects to finalize share allotments by August 5, with trading on the BSE SME platform set to begin on August 7.
Financial Performance and Growth
Founded in 1985, the company provides operation and maintenance services for electricity distribution utilities, including electrical infrastructure development and metering services. Financial records show a period of growth leading up to the IPO. For the fiscal year ended March 2026, the company reported a revenue of ₹156.4 crore, marking a 19.2 percent increase over the previous year. Profit after tax saw a sharper rise of 124.5 percent, reaching ₹10.5 crore compared to ₹4.7 crore in the prior fiscal year. Operating margins also improved during this period, with the EBITDA margin expanding to 10.9 percent from 6.13 percent previously.
Use of Proceeds
The company intends to deploy the ₹39 crore raised from the fresh issue to strengthen its financial position and support operations. Specifically, ₹6 crore is earmarked for the repayment of existing debt, which could help reduce interest expenses. A larger portion of ₹22 crore will be allocated toward meeting working capital requirements, which is critical for a service-heavy business model that often requires upfront spending on projects before receiving payments from utilities. The remaining balance is set aside for general corporate purposes.
Investors may want to monitor how the company manages its working capital cycle and debt levels post-listing. As an SME platform listing, the stock may see different liquidity patterns compared to mainboard stocks. The long-term performance will depend on the company’s ability to secure new contracts from electricity distribution utilities and maintain the profit margins achieved in the most recent fiscal year.