Mehul Telecom Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹98
Per ShareLot Size
1200 Shares
Minimum Investment
₹1,17,600
Issue Size
₹27.73 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35.08%
QIB Quota
49.91%
NII Quota
15.01%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Mehul Telecom Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
94.25%
Promoter Holding (Post-Issue)
68.74%
Issue Type
Book Building - SME
ISIN
INE1K0V01011
About the Company
The Company, Mehul Telecom Limited is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a hybrid "COCO" (Company Owned, Company Operated) and "FOFO" (Franchisee Owned, Franchisee Operated) retail model. Its retail portfolio comprises products from leading smart phone and phone accessory manufacturers viz., MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular Brands. In addition to handsets, the company retails connected lifestyle products and peripherals such as Air Conditioners, Refrigerators, Washing Machines, Televisions, wearables, audio devices, and power solutions like speakers, smartwatch, ear phones, head phones, tablets, mobile covers, phone chargers, screen guards, power banks, phone warranty plans, fire sticks, car holder clamps, pen drive etc. of various brands. Its stores support omnichannel checkout including UPI, mobile wallets, and integrated POS terminals. The Company operates under the brand name "Mehul Telecom". As on the date of Red Herring Prospectus, the company operates from total 80 stores across the state of Gujarat out of which 6 are COCO stores and 74 are FOFO stores.
Industry Overview
The outlook for India's electronics manufacturing industry is promising, with projections aiming to reach US$ 540 billion by 2025, showing a significant increase from the US$ 215 billion demand in FY19. The market has demonstrated steady growth during years indicating a robust 14% Compound Annual Growth Rate (CAGR) between 2016 and 2019 and 16.6% CAGR Growth between FY19-FY25. Further, the electronics system Design and Manufacturing market is forecasted to achieve US$ 220 billion by FY25. Notably, key products within the Electronics & Telecommunications Development (ESDM) sector, including IT/OA, industrial electronics, and automotive electronics, have shown the highest CAGR. The import and export data portray a dynamic trade scenario, showcasing imports of electronic goods amounting to US$ 73.46 billion and exports totaling US$ 22.68 billion during the previous fiscal year (FY23). The growth trajectory extends to specific sectors, with smartphone shipments reaching 168 million units in CY 2021. Likewise, 5G device shipments are anticipated to surge by 129% year-on-year. The electronics design segment, is poised to constitute 27% of the total ESDM market size by FY25. With a firm commitment, India aims to achieve US$ 300 billion worth of electronics manufacturing and exports totaling USD 120 billion by 2025-26.
Company History
The Company was incorporated as a Private Limited Company in the name `Mehul Telecom Private Limited', under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated May 17, 2023 issued by the Registrar of Companies, Central Registration Centre. Subsequently, pursuant to a special resolution passed by the shareholders of the Company in the Extra-Ordinary General Meeting held on February 28, 2025 the Company was converted from a Private Limited Company to Public Limited Company and consequently, the name of the Company was changed to `Mehul Telecom Limited and a Fresh Certificate of Incorporation consequent to Conversion was issued on March 20, 2025, by the Registrar of Companies, Central Registration Centre. The Corporate Identification Number of the Company is U46524GJ2023PLC141259.
Products & Services
- Mehul Telecom Limited is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a hybrid "COCO"and "FOFO" model.
Growth Strategy
- Expansion in Districts across Gujarat.
- Leveraging Market Expertise and Customer Relationships.
- Increasing Brand visibility.
- Diversification in to other consumer durables.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public issue of 28,29,600 equity shares of face value of Rs.10/- each ("Equity Shares") of Mehul Telecom Limited ("MTL" or "The Company") at an issue price of Rs. 98/- per equity share (including a share premium of Rs. 88/- per equity share) for cash, aggregating to Rs. 27.73 Crores ("Public Issue"), out of which 1,44,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 98/- per equity share for cash, aggregating Rs. 1.41 Crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. Issue of 26,85,600 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 98/- per equity share for cash, aggregating up to Rs. 26.32 Crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 27.07% and 25.70% respectively of the post-issue paid-up equity share capital of the company. Price Band is Rs. 98 per equity share of face value of Rs. 10/- each. The floor price is 9.8 times of the face value. Bids can be made for a minimum of two lot and in multiples of 1,200 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Experienced Promoters and Management Team.
- Extensive Distribution Network in Gujarat.
- Comprehensive Product Range.
- Strategic Store Locations and Customer Experience.
- Low Capex Requirements for Growth.
- Opening and closing of stores is a regular part of the Company's business and depends mainly on the revenuegenerating potential of each location. Store performance is influenced by factors such as location, customer footfall, product mix, and operating efficiency. High-revenue stores are retained to strengthen its retail network, while underperforming outlets are rationalized or closed. This approach, while optimizing operations, exposes the company to risks of site selection errors, demand misjudgment, and closure-related costs.
- The company's operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. In the State of Gujarat also its business revenue is generated mainly from two districts viz., Rajkot and Morbi. Any adverse development affecting the company's operations in this region or any saturation could have an adverse impact on its business, financial condition and results of operations.
- The company has a limited operating history and may be subject to risks inherent in early-stage companies, which may make it difficult for investors to evaluate its business and prospects.
- A substantial portion of the company's revenues has been dependent upon a limited number of customers. Loss of any of the top customers or any reduction of business from any one of them may affect the financial performance of the Company.
- The Company had negative cash flow from operating activity in recent financial years, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.