Mehul Telecom's SME Initial Public Offering (IPO) opened for subscription on Friday, signaling an infusion of growth capital into the multi-brand retail sector. The issue has captured investor attention, with the Grey Market Premium (GMP) currently indicating a modest listing premium of around 4%. This suggests a potential listing price near ₹ 102, reflecting mild investor optimism for the offering.
The entire issue is a fresh component, comprising 28.29 lakh shares, with a price band set between ₹ 96 and ₹ 98 per share. The offering, which is capped at approximately ₹ 28 crore, remains open for subscriptions until April 21. Listing is scheduled for April 24 on the BSE SME platform.
Key Financial Indicators and Business Profile
Mehul Telecom operates a multi-brand retail model specializing in smartphones and related accessories. The business utilizes a hybrid network of company-owned and franchisee-operated stores, with primary operations concentrated in Gujarat. The company sources products from major smartphone brands and provides accessories including wearables, audio devices, and power solutions.Financially, the company demonstrates improving earnings momentum. For the nine months ended December 2025, Mehul Telecom reported revenue of ₹ 152 crore. Furthermore, its profit after tax stood at ₹ 7.07 crore, representing a noticeable increase compared to the ₹ 5.74 crore profit recorded in FY25.
SME IPO Structure and Subscription Details
The IPO has a highly structured allocation, designed to balance diverse investor participation. The distribution reserves nearly 50% of the issue for Qualified Institutional Buyers (QIBs). Non-institutional investors (NIs) are allocated about 15%, with the remaining 35% reserved for retail investors.Investors should note the relatively high entry threshold inherent to the SME structure. Retail investors must apply for a minimum of 2,400 shares, which translates to an approximate investment of ₹ 2.35 lakh at the upper price band. Allotment of shares is expected to be finalized on April 22.
Fund Utilization and Market Outlook
The capital raised through this IPO is primarily earmarked to fund the company’s working capital requirements. The balance of the proceeds will be allocated toward general corporate purposes, bolstering the firm's expansion plans across its operational regions.While the modest GMP suggests limited immediate near-term listing gains, market analysts point to the underlying fundamentals. The combination of a relatively small issue size and the consistently improving financial trajectory could generate significant interest if subscription demand ramps up. These robust financials support continued investment interest in the company’s growth narrative.
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