The Mehul Telecom IPO will be open for subscription from April 17 to April 21, 2026. The company has fixed the price band at ₹96 to ₹98 per equity share. This is a 100% Fresh Issue of 28.29 lakh shares, with the proceeds primarily earmarked for working capital requirements and scaling its inventory.

Retail investors can bid for a minimum of 2 lots (2,400 shares), requiring a minimum investment of ₹2,35,200 at the upper price cap. The shares are scheduled to list on the BSE SME platform.

Business Model Highlights:

The company operates through a successful hybrid distribution model:

• Company Owned (COCO): 6 flagship stores that contribute over 72% of total revenue and serve as experience centers.

• Franchisee Model (FOFO): 74 stores across Gujarat that allow for rapid geographical scaling with minimal capital expenditure.

• Product Focus: While smartphones account for nearly 98% of sales, the company is aggressively expanding into high-margin wearables and audio accessories.

Financial Performance:

• Revenue Growth: Total income jumped from ₹115.47 crore in FY24 to over ₹152.02 crore by December 2025.

• Profitability: Net Profit (PAT) skyrocketed from a minor loss in FY24 to a robust ₹7.07 crore in the same 9-month period of FY26.

• Health: The company reports a healthy ROE of ~34% and a very low Debt-to-Equity ratio, indicating a stable financial foundation.

Key IPO Details & Timetable

Important Real News & Today’s Insights (April 15)

• Grey Market Premium (GMP): As of today, the GMP is trading at ₹0 (Flat). Despite the strong financial turnaround, the grey market is showing caution. Analysts suggest this is due to the high retail entry barrier and intense competition from e-commerce giants.

• Geographic Focus: A key point of discussion today is the company's 100% concentration in Gujarat. While the brand is dominant in Rajkot and surrounding districts, geographic diversification remains a long-term goal that investors are watching closely.

• Inventory Management: Today's research notes highlight that the company intends to deploy ₹22.95 crore of the proceeds directly into working capital. This is critical for maintaining high stock levels of newly launched 5G models from major brands.

• Promoter Experience: Management emphasized today that their 17 years of experience in the telecom hub of Rajkot provides a "local trust" moat that national chains find difficult to replicate in the region.

• Valuation Note: At the upper band of ₹98, the IPO is valued at a P/E of ~13.02x. This is considered fairly priced compared to larger retail peers, offering room for growth if the franchise expansion continues at its current pace.