THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY. THIS IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR SUBSCRIBE TO SECURITIES. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, OUTSIDE INDIA.

Initial public issue of equity shares on the main board of BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE", and together with BSE, the "Stock Exchanges") in compliance with Chapter II of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBI ICDR Regulations").

MV Electrosystems Limited

(To Be Listed on the Main Board of BSE and NSE)

MV Electrosystems Limited ("Company" or "Issuer") was originally incorporated as 'MV Electrosystems Private Limited' on July 03, 2009 at Delhi as private limited company under the Companies Act, 1956. Subsequently, our Company was converted into a public limited company, the word 'private' was struck off from the name of our Company and consequently, a fresh certificate of incorporation dated November 26, 2021 was issued by the Registrar of Companies ("RoC"), recording the change of our Company's name to 'MV Electrosystems Limited'. For details of change in the name of our Company and Registered Office of our Company, see "History and Certain Corporate Matters" on page 252 of the Prospectus.

1. Customer concentration risk: Our business is dependent on and derive a substantial portion of our revenue from a limited number of customers. Further, Indian Railways through its various units or workshops, has been the single largest customer of our Company. Cancellation of orders, if any, by customers or delay or reduction in their orders could have a material adverse effect on our business, results of operations and financial condition.

(Rs. in million)

*As %age to revenue from operations.

2. Risk of renewing or maintaining statutory and regulatory approvals: We are required, and will continue to be required, to obtain and hold relevant statutory and regulatory approvals, licenses, permits and registrations for our operations. Except as disclosed below, as on the date of the RHP, there are no material approvals applied for, including renewal applications, that have not been received by our Company:

3. Dependence on key suppliers for sourcing raw materials: We are dependent on certain key suppliers for a significant portion of our raw materials purchased. The following tables set forth details of raw material purchased and contribution to total purchase of material and consumables from our top suppliers for the periods and year indicated:

(Rs. in million)

# value of purchase of material and consumables during the period

* cost of goods sold (i.e., cost of raw material consumed, adjusted for changes in inventory of finished goods, work in progress and stock in trade)

^Includes goods in transit as on March 31, 2025

4. Geographical concentration risk: We have only one assembling cum manufacturing facility located at Village Bagbola, Palwal, Haryana (Unit 1) and the proposed assembling cum manufacturing facility is located at Village Nangla Bhiku, Palwal, Haryana (Unit 2). Any breakdown or failure of equipment, difficulties or delays in obtaining raw materials, spare parts and equipment / machines, raw material shortages, operational inefficiency, facility obsolescence or man-made disasters, industrial accidents or regional social unrest may restrict our operations and adversely affect our business and financial conditions.

5. Negative cash flows from operating activities: Our Company has experienced negative cash flows from operating activities during the Financial Year ended March 31, 2026 and March 31, 2024 and may experience similar earnings declines or operating losses or negative cash flows from operating activities in the future. The following table sets forth certain information relating to our cash flows for the periods indicated:

(Rs. in million)

6. High working capital requirement: Our business requires significant working capital for our business operation, furnishing of bank guarantees for orders awarded or deduction of retention money from amount receivable by us, financing inventory and any change in terms of credit or payment would affect our working capital. The following table shows our net working capital turnover ratio for the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively:

(Rs. in million)

*based on Restated financial information and excludes cash and cash equivalents and current borrowings.

7. Our revenue from operations have been constant in the past as compared to the orders received: Our revenue from operations have been slightly constant in the past as our Company focused on the development of 3-Phase Propulsion Equipment. The following table sets forth our revenue from operations and profit during the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024:

(Rs. in million)

Our Company has received significant purchase orders aggregating to Rs. 7,376.60 million (excluding GST and AMC) for supply of 450 (four hundred fifty) 3-Phase Propulsion Equipment during the Financial Year ended March 31, 2026. Any inability to execute these orders in accordance with their terms, including with respect to production capacity, working capital requirements, operational execution, delivery schedules, quality standards or warranty and maintenance obligations, may have a material adverse effect on our business, financial condition, results of operations, cash flows and future prospects.

8. Our business with our customers is on purchase order basis or through tenders and we do not have long-term contracts: Our business is primarily conducted on purchase order basis or through tenders issued by Indian Railways and we neither have long-term contracts with most of our customers nor have any marketing tie up. Our Company participates in these tenders and may not always qualify as lowest bidder or match the bid of the lowest bidder and hence, the conversion of participation in the tenders vis-à-vis successful award of order is low, which is as under:

(Rs. in million)

9. Liquidated damage charges: Most of our customer orders generally contains a liquidated damage charges clause for delay or non delivery of the products and we may also incur such similar cost in the event of disputes, claims, defects or delays in future, which could adversely affect our business, financial condition, profitability and cash flows. The details of such expenditure for last three financial years are as under:

(Rs. in million)

10. Dependence on imports of certain raw material: Our Company relies on imports from certain countries for certain raw material for our products, including for 3-Phase Propulsion Equipment. Supplies of such imports / imported materials may be disrupted by changes in government regulations or policies, deterioration in economic conditions or escalation of trade tensions and any changes in the pricing and quality of our raw material / components including Insulated Gate Bipolar Transistors, capacitors, semiconductors, microprocessors, thyristor, etc could cause significant disruptions to and adversely impact our business operations.

During the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024, we imported supplies from China, Taiwan, USA and other countries. The table below shows the cost of imported materials consumed by country as a percentage of the total cost of materials consumed for the periods indicated:

(Rs. in million)

11. Risk of loss of confidential technical knowledge: Our competitive advantage is heavily dependent on our proprietary technical knowledge, which includes trade secrets, assembling and manufacturing processes, and other confidential information critical to our operations. The unauthorized disclosure or misappropriation of this technical knowledge could significantly erode our competitive position in the market. If we fail to adequately protect this information, whether through lapses in internal controls, breaches of confidentiality agreements, or cybersecurity incidents, it could lead to the loss of valuable intellectual property.

11. Risk of loss of confidential technical knowledge: Our competitive advantage is heavily dependent on our proprietary technical knowledge, which includes trade secrets, assembling and manufacturing processes, and other confidential information critical to our operations. The unauthorized disclosure or misappropriation of this technical knowledge could significantly erode our competitive position in the market. If we fail to adequately protect this information, whether through lapses in internal controls, breaches of confidentiality agreements, or cybersecurity incidents, it could lead to the loss of valuable intellectual property.

12. Risk of technological advancements in railway propulsion and power electronics systems: Our business operates in a technology-driven environment where developments in railway propulsion systems, power electronics, control systems and energy efficiency standards continue to evolve. In the railway sector, changes in technology are typically reflected through evolving technical specifications, performance requirements and regulatory standards rather than complete replacement of underlying technologies. There can be no assurance that our research and development efforts will enable us to successfully anticipate, develop or adopt new or enhanced technologies in a timely or cost-effective manner.

13. Our Company has incurred loss in the financial year ended March 31, 2026 and hence price-to-earnings ratio cannot be ascertained. The average industry price-to-earnings ratio based on the identified peer set is 88.83 times.

14. Weighted Average Return on Net Worth for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 is (6.92%).

15. Weighted Average Cost of Acquisition for all Equity Shares transacted by our Promoters, members of the Promoter Group and shareholders with the right to nominate directors or other rights to the extent applicable (excluding inter-se promoter group transfer by way of gift) in 1 year, 18 months and 3 years immediately preceding the Prospectus is as follows:

*For weighted average cost of Acquisition, the price and the number of Equity Shares have been adjusted for the split of face value of equity shares from Rs. 10 to Rs. 5

^ Pursuant to the Shareholders resolution passed at the Extra Ordinary General Meeting held on November 30, 2023, our Company has allotted bonus shares in the ratio of thirty one bonus Equity Shares of face value Rs. 10 each for every one then existing Equity Share of face value Rs. 10 each held in the meeting of the Board of Directors held on December 09, 2023 and Reserved Bonus Equity Shares of face value Rs. 10 each allotted in the meeting of the Board of Directors held on March 18, 2025. Nil cost refers to the acquisition of such Bonus Equity Shares.

Certified by Aakash Mehta, Partner, Bilimoria Mehta & Co., Chartered Accountant, (Membership No.: 165824; UDIN: 26165824BSMLZ O5743) vide their certificate dated July 23, 2026

16. The BRLM associated with the Issue (Sundae Capital Advisors Private Limited) has handled 3 (three) public issues in the past 3 financial years out of which 1 SME issue closed below the issue price on listing date.

17. Our Promoter and Promoter Group shareholders had sold Equity Shares of face value Rs. 10 each, prior to split of face value and face value Rs. 5 each of our Company to various transferees (excluding inter-se promoter group transfer by way of gift) in the preceding one year from the date of the Red Herring Prospectus, summary of which is as under:

* Promoter Group Inter-se Transfer (Sale) of Equity Shares to Ramendra Pratap Singh, one of the Promoter of our Company, for cash consideration.

@The number of Equity shares and sale price indicated in column (5) & (6) above have been adjusted for the split of face value of equity shares from Rs. 10 to Rs. 5

18. Weighted average cost of acquisition, floor price and cap price

Certified by Aakash Mehta, Partner, Bilimoria Mehta & Co., Chartered Accountant, (Membership No.: 165824; UDIN: 26165824MIUKTB3593) vide their certificate dated July 23, 2026

The Issue is being made through the Book Building Process, in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations and in accordance with the Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Issue shall be available for allocation on a proportionate basis to qualified institutional buyers (QIBs) (such portion referred as QIB Portion), provided that our Company, in consultation with the BRLM, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion"), of which 40% shall be reserved as under: (i) 33.33% for domestic Mutual Funds; and (ii) 6.67% shall be reserved for Life Insurance Companies and Pension Funds, subject to valid Bids being received from domestic Mutual Funds, Life Insurance Companies and Pension Funds at or above the price at which Equity Shares will be allocated to the Anchor Investors ("Anchor Investor Allocation Price"), in accordance with the SEBI ICDR Regulations. Any under-subscription in the reserved category specified in clause (ii) above, may be allocated to domestic Mutual Funds. In the event of under-subscription or non allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (excluding the Anchor Investor Portion) ("Net QIB Portion"). Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds (Mutual Fund Portion), and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to all QIBs. Further, not more than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Investors out of which (a) one-third of such portion shall be reserved for applicants with application size of more than Rs. 0.20 million and up to Rs. 1.00 million; and (b) two-third of such portion shall be reserved for applicants with application size of more than Rs. 1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Investors and not more than 10% of the Issue shall be available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price. All potential Bidders (except Anchor Investors) are mandatorily required to participate in the Issue through the Application Supported by Blocked Amount (ASBA) process by providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders using UPI Mechanism, as applicable, pursuant to which their corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks (SCSBs) or by the Sponsor Bank(s) under the UPI Mechanism, as the case may be. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For further details, see 'Issue Procedure' on page 456 of the Prospectus.

The bidding for Anchor Investor opened and closed on July 29, 2026. The Company received 14 applications from 12 Anchor Investors for 4,058,818 Equity Shares. The Anchor Investor Issue Price was finalized at Rs. 425 per Equity Share. A total of 3,070,587 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 1,304,999,475/-.

The Issue received 3,790,038 applications for 759,610,932 Equity Shares resulting in 111.32 times subscription as disclosed in the Prospectus. The details of the applications received in the Issue from Retail Individual Bidders, Non-Institutional Bidders and QIBs are as under (before technical rejections):

*This excludes 8,253 applications for 351,390 Equity Shares aggregating to Rs. 149,341,702/- from Retail Individual which were not in bid book but which were banked.

A summary of the final demand as per NSE and BSE as on the Bid/ Issue Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on August 04, 2026.

The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs. 425 per Equity, was finalized in consultation with NSE. This category has been subscribed to the extent of 210.59455 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 682,346 Equity Shares to 20,069 successful applicants. The category-wise details of the Basis of Allotment are as under:

The Basis of Allotment to the Non-Institutional Bidders (more than Rs. 0.20 million and upto Rs. 1 million), who have bid at the Issue Price of Rs. 425 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 349.55201 times. The total number of Equity Shares allotted in this category is 341,167 Equity Shares to 716 successful applicants. The category-wise details of the Basis of Allotment are as under:

- Please Note: 1 (One) lot of 476 shares have been allocated to all the 1,701 Non Allottees Applicants in Categories with ZERO/NO Allotment in the ratio of 4 : 1701

- Please Note: 7 additional Shares have been allocated to all 50 Successful Allottees from the categories 510 to 2,346 (I.e. excluding successful applicants from Category 476) in the ratio of 1 : 1

- Please Note: 1 additional Shares have been allocated to all 50 Successful Allottees from the categories 510 to 2,346 (I.e. excluding successful applicants from Category 476) in the ratio of 1 : 50

The Basis of Allotment to the Non-Institutional Bidders (more than Rs. 1 million), who have bid at the Issue Price of Rs. 425 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 418.69557 times. The total number of Equity Shares allotted in this category is 682,335 Equity Shares to 1,433 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

- Please Note: 1 (One) lot of 476 shares have been allocated to all the 1117 Non Allottees Applicants in Categories with ZERO/NO Allotment in the ratio of 13 : 1117

- Please Note: 1 additional Shares have been allocated to all 1433 Successful Allottees from all the Categories in the ratio of 227 : 1433

Allotment to QIBs, who have bid at the Issue Price of Rs. 425 per Equity Share or above, has been done on a proportionate basis in consultation with NSE. This category has been subscribed to the extent of 95.28701 times of Net QIB portion. As per the SEBI Regulations, Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. 102,354 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. 1,944,739 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 2,047,093 Equity Shares, which were allotted to 154 successful Applicants.

The Company, in consultation with the BRLMs, have allocated 3,070,587 Equity Shares to 12 Anchor Investors (through 14 Anchor Investor Application Forms) (including 1 domestic Mutual Funds through 3 schemes) at an Anchor Issue Price at Rs. 425 per Equity Share in accordance with SEBI ICDR Regulations. This represents 60% of the QIB portion.

The Board of Directors of our Company vide its resolution passed through circulation on August 04, 2026 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation and/or notices have been dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Issue Account on August 04, 2026 and the payments to non-syndicate brokers have been issued on August 04, 2026. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on August 05, 2026 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on August 05, 2026. The Company has received the listing and trading approval from BSE & NSE, and trading will commence on August 06, 2026.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the Bid cum Application form number, Bidders DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

KFin Technologies Limited

Selenium, Tower B, Plot No. 31 and 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad - 500 032, Telangana, India;

Tel. No.: + 91 40 6717 2222 / 18003094001; E-mail: mvelectrosystems.ipo@kfintech.com; Investor Grievance e-mail: einward.ris@kfintech.com

Website: www.kfintech.com; SEBI Regn No.: INR000000221; Contact Person: M. Murali Krishna

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF KFIN TECHNOLOGIES LIMITED.

MV Electrosystems Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public Issue of its Equity Shares and has filed a Prospectus dated August 03, 2026 with the RoC. The Prospectus is available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLM i.e. Sundae Capital Advisors Private Limited at www.sundaecapital.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.mvelectrosystems.com. Any potential investor should note that investment in Equity Shares involves a high degree of risk and should refer to the Prospectus, including the section titled "Risk Factors" on page 22 of the Prospectus.

This announcement is not an offer of securities for sale in the United States or elsewhere. This announcement has been prepared for publication in India only and is not for publication or distribution, directly or indirectly, in or into the United States. The Equity Shares issued in the Issue have not been and will not be registered under the U.S. Securities Act or any other applicable laws in the United States, and unless so registered, may not be issued or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in 'offshore transactions' in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdictions where such issue and sales are made.

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be issued or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.