Mehul Telecom Lists at ₹108, Up 10.00%

Mehul Telecom Ltd, incorporated in May 2023 as a multi-brand mobile retail chain offering smartphones and accessories through COCO (Company Owned, Company Operated) and FOFO (Franchisee Owned, Franchisee Operated) retail models selling products from major brands including MI, Samsung, iPhone, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, and Xiaomi along with allied accessories like smartwatches, earphones, tablets, and power banks across Gujarat with 27 personnel, made a strong debut on BSE SME on Friday, April 24, 2026. The Mehul Telecom share price opened at ₹108.00 representing premium of 10.20% from issue price of ₹98.00, touched high of ₹109.90 (up 12.14%) before trading around ₹107.80 (up 10.00%).

Mehul Telecom Listing Details

Mehul Telecom launched its fresh issue IPO at ₹98 per share with minimum investment of 2,400 shares costing ₹2,35,200 raising ₹27.73 crore including ₹7.74 crore from anchor investors. The IPO received exceptional response with massive subscription of 44.91 times - retail investors at 37.41 times, NII strongly subscribed at 79.38 times, QIB at 32.50 times, total applications of 18,716.

First-Day Trading Performance

Listing Price: Mehul Telecom stock price opened at ₹108.00 representing premium of 10.20% from issue price, touched high of ₹109.90 (up 12.14%) before trading around ₹107.80 (up 10.00%), with VWAP at ₹107.95. The strong listing delivered healthy gains for IPO investors with turnover of ₹16.07 crore, traded volume of 14.89 lakh shares, and market capitalisation of ₹112.67 crore against pre-IPO market cap of ₹102.43 crore.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Growth: Revenue of ₹152.02 crore for 9 months FY26 (already exceeding full FY25 of ₹115.47 crore), healthy ROE of 34.27%, ROCE of 34.80%, near debt-free with debt-to-equity of only 0.15.

Scalable Business Model: Hybrid COCO and FOFO retail model with strategic store locations in Gujarat requiring low capital for growth expansion.

Challenges:

Window Dressing Concerns: Analyst warns inflated profits from FY25 onwards appear to be window dressing for fetching fancy IPO valuations with sustainability concerns.

Competitive Segment: Operating in highly competitive and fragmented mobile retail market facing competition from online retailers and brand exclusive stores.

Geographic Concentration: Operations limited to Gujarat with need for expansion into other states to diversify revenue base, thin PAT margin of 4.65%.

Utilisation of IPO Proceeds

Working Capital: ₹22.95 crore for funding working capital requirements representing bulk of proceeds supporting inventory and retail operations expansion.

General Corporate Purposes: ₹2.01 crore for general corporate purposes.

Financial Performance

Revenue: ₹152.02 crore for 9 months ended December 2025 (already exceeding full FY25), ₹115.47 crore for FY25 (first full year of operations as company incorporated in May 2023).

Net Profit: ₹7.07 crore for 9 months FY26, ₹5.74 crore in FY25, with post-IPO EPS of ₹9.02 and attractive P/E of 10.86x. Investors tracking Mehul Telecom share price should note strong profitability growth with EBITDA margin of 6.39%.

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