Mehul Telecom Ltd IPO
Status: Closed
Overview
IPO date
17 Apr 2026 to 21 Apr 2026
Face value
₹ 10 per share
Price
₹ 96 to ₹98 per share
Issue Size
2,829,600 shares
(aggregating up to ₹ 27.73 Cr)
(aggregating up to ₹ 27.73 Cr)
Allotment Date
22 Apr 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Retail
Objectives of Mehul Telecom Ltd IPO
Mehul Telecom Ltd IPO Strategy
About Mehul Telecom Ltd
Unlock Stock of the Month
T&C*
Strengths vs Risks of Mehul Telecom Ltd
Know the pros & cons
Strengths
Experienced Promoters and Management Team.- Extensive Distribution Network in Gujarat.
- Comprehensive Product Range.
- Strategic Store Locations and Customer Experience.
- Low Capex Requirements for Growth.
- Strong Financial Partnership.
Risks
- 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.
- The company's Registered Office and other premises from where the company operates are on lease basis and not owned. In case of non
renewal on commercially acceptable / favourable terms in future, it may lead to disruption in the company's operations and / or
higher rent, which in turn could have an adverse effect on its business prospects and financial condition.
- The company's business is a high volume-low margin business. The company's inability to regularly grow its turnover and effectively execute
the company's key business processes could lead to lower profitability and hence affect its operating results and financial
conditions.
- Competition from online retailers who can offer products at competitive prices and are also able to offer a wide range
of products may adversely affect its business and the company's financial condition, results of operations and cash flows.
- The Mobile and Accessories retailing business has a low entry barrier. Increase in competitors, including new entrants
who can capture market share rapidly could have an adverse impact on the company's business, financial condition and results
of operations.
- Over dependence of the company's business on franchise owned and franchise operated model (FOFO) rather than company
operated and company owned (COCO) model.
- The company has a limited product line focusing exclusively on the distribution of telecom products including mobile devices,
accessories and other related gadgets exposing us to significant risks due to lack of diversification.
- High price fluctuations of mobile phones and accessories driven by technological advancements leading to significant
price drop of older models simultaneously.
- The company's operations are heavily reliant on the logistics and transportation systems of the manufacturers' distributors. Any
delays, disruptions, or inefficiencies in the distributors' logistics operations could significantly impact the timely
availability of products the company sells and could have a material adverse effect on its business, financial condition and results
of operations.
- The company's insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a
material adverse effect on its business.
- The Company is dependent on a few numbers of suppliers for purchase of products. Loss of any of these large suppliers
may affect its business operations.
- The Company's business highly depends on the brands recognition and reputation of the products it offers to sell and
their inability to maintain or enhance brands image that the company sells could have a material adverse effect on its business,
financial condition and results of operations.
- Exclusive tie-ups of the manufacturers with specific retailers or groups of retailers could adversely impact its ability
to source products competitively or at all.
- The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which
may affect its competitive edge and better bargaining power if entered with non-related parties resulting in relatively
more favorable terms and conditions and better margins.
- There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- There have been instances of delays in filings of certain forms which were required to be filed as per the reporting
requirements in accordance with the Companies Act, 2013. Any such delays/ discrepancies in the future may attract
penalties/ compounding/ adjudication, leading to additional compliance burden, monetary loss as well as loss of
reputation for the Company.
- The company may be subject to risks associated with product warranty for the brand products. Any product defects or liability
claims may cause adverse publicity, reduce customers, and adversely affect its business and results of operations.
- The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or
financial institution. Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Red
Herring Prospectus, the Company's management will have flexibility in applying the proceeds of this Issue.
- The company's business is subject to cyclical volatility due to which there may be fluctuation in the sales of products which could
lead to a higher closing inventory position, which may adversely affect its business.
- In addition to normal remuneration, other benefits and reimbursement of expenses to the company's Promoters and Directors;
they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the
transactions entered into between the Company and themselves as well as between the Company and our Group
Companies/Entities.
- The company operates in a competitive industry and the company's market share may be adversely impacted in case the company does not keep ourselves
apprised of the latest consumer trends and technology and if the company fails to compete effectively in the markets in which the company
operates.
- The company's success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing
services, strategic guidance and financial support. The company's success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are managing the Company.
- The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the
Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital
requirements and capital expenditures.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of the company's Equity
Shares by its major shareholders may adversely affect the trading price of the company's Equity Shares.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- The company cannot assure the accuracy completeness or reliability of information relating to India the Indian economy and the
industry in which the company operates included in this Red Herring Prospectus.
-
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue.
Further, The company have not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising /
meeting the same could adversely affect its growth plans, operations and financial performance.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to
certain compliance requirements, including prior approval of the shareholders of the Company.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidents could adversely
affect its financial condition, results of operations and reputation.
- There may be an adverse impact on the company's business, results of operations and financial condition due to implementation
of the Labour Codes and changes in labour laws.
- The requirements of being a publicly listed company may strain its resources.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the
Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE
in a timely manner or at all.
- There is no existing market for the company's Equity Shares, and the company does not know if one will develop to provide you with adequate
liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares
may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a
shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may
dilute your shareholding and any sale of Equity Shares by the company's Promoters or members of its Promoter Group may
adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by the company's Promoters or other significant shareholder(s) may adversely affect the trading price of
the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
Mehul Telecom Ltd Peer Comparison
Understand the company’s industry standing
Mehul Telecom Limited*
Fonebox Retail limited
Jay Jalaram Technologies Limited
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
standalone
Total Income Rs. Cr.
120.89
2342.74
339.09
EPS-Basis
8.3
4.43
5.27
EPS-Diluted
---
---
---
NAV Per Share
23.49
33.62
56.81
P/E-Basic EPS
---
14.45
17.13
P/E-Diluted EPS
---
---
---
RONW(%)
35.31
13.18
10.02
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Mehul Telecom Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 17 Apr 2026 & closes on 21 Apr 2026.
Mehul Telecom Limited was incorporated as a private limited Company in the name Mehul Telecom Private Limited', under the provisions of the Companies Act, 2013 dated May 17, 2023 issued by the Registrar of Companies. Subsequently, Company was converted from a private Company to Public Company and the name was changed to Mehul Telecom Limited and a fresh Certificate of Incorporation was issued on March 20, 2025, by the Registrar of Companies, Central Registration Centre.
The Company acquired the running business of M/s Mehul Telecom, the erstwhile proprietorship Firm of the Promoter, Mehul Vasantbhai Raymagiya effective from April 21, 2024, via Business Transfer Agreement dated May 14, 2024. The proprietorship Firm was in the same line of business as the Company, opened its first owned store of phones and accessories from the financial year 2007-2008 and since then, expanded its business by opening the first FOFO store in year 2020 and 50th store in 2022, until its business was transferred to the Company.
Presently, Company is in the business of operating a multi-brand mobile retail chain offering smartphones and accessories through a hybrid COCO (Company Owned, Company Operated) and FOFO (Franchisee Owned, Franchisee Operated) retail model. The 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 Gujarat. In addition to handsets, it retail, connected lifestyle products and peripherals such as 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, firesticks, car holder clamps, pen drive etc. of various brands. These stores support omnichannel checkout including UPI, mobile wallets, and integrated POS terminals.
Company is planning the initial public issue of 30,00,000 equity shares of face value of Rs 10/- per share through Fresh Issue.
Mehul Telecom Ltd IPO will close on 21 Apr 2026.
- Experienced Promoters and Management Team.
- Extensive Distribution Network in Gujarat.
- Comprehensive Product Range.
- Strategic Store Locations and Customer Experience.
- Low Capex Requirements for Growth.
- Strong Financial Partnership.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Mehul Vasantbhai Raymagiya | 3984000 | 52.27 | 3984000 | 38.12 |
| 2 | Raymagiya Hemali Mehulbhai | 3200000 | 41.98 | 3200000 | 30.62 |
- 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.
- The company's Registered Office and other premises from where the company operates are on lease basis and not owned. In case of non renewal on commercially acceptable / favourable terms in future, it may lead to disruption in the company's operations and / or higher rent, which in turn could have an adverse effect on its business prospects and financial condition.
- The company's business is a high volume-low margin business. The company's inability to regularly grow its turnover and effectively execute the company's key business processes could lead to lower profitability and hence affect its operating results and financial conditions.
- Competition from online retailers who can offer products at competitive prices and are also able to offer a wide range of products may adversely affect its business and the company's financial condition, results of operations and cash flows.
- The Mobile and Accessories retailing business has a low entry barrier. Increase in competitors, including new entrants who can capture market share rapidly could have an adverse impact on the company's business, financial condition and results of operations.
- Over dependence of the company's business on franchise owned and franchise operated model (FOFO) rather than company operated and company owned (COCO) model.
- The company has a limited product line focusing exclusively on the distribution of telecom products including mobile devices, accessories and other related gadgets exposing us to significant risks due to lack of diversification.
- High price fluctuations of mobile phones and accessories driven by technological advancements leading to significant price drop of older models simultaneously.
- The company's operations are heavily reliant on the logistics and transportation systems of the manufacturers' distributors. Any delays, disruptions, or inefficiencies in the distributors' logistics operations could significantly impact the timely availability of products the company sells and could have a material adverse effect on its business, financial condition and results of operations.
- The company's insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- The Company is dependent on a few numbers of suppliers for purchase of products. Loss of any of these large suppliers may affect its business operations.
- The Company's business highly depends on the brands recognition and reputation of the products it offers to sell and their inability to maintain or enhance brands image that the company sells could have a material adverse effect on its business, financial condition and results of operations.
- Exclusive tie-ups of the manufacturers with specific retailers or groups of retailers could adversely impact its ability to source products competitively or at all.
- The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting in relatively more favorable terms and conditions and better margins.
- There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements in accordance with the Companies Act, 2013. Any such delays/ discrepancies in the future may attract penalties/ compounding/ adjudication, leading to additional compliance burden, monetary loss as well as loss of reputation for the Company.
- The company may be subject to risks associated with product warranty for the brand products. Any product defects or liability claims may cause adverse publicity, reduce customers, and adversely affect its business and results of operations.
- The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution. Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of this Issue.
- The company's business is subject to cyclical volatility due to which there may be fluctuation in the sales of products which could lead to a higher closing inventory position, which may adversely affect its business.
- In addition to normal remuneration, other benefits and reimbursement of expenses to the company's Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and our Group Companies/Entities.
- The company operates in a competitive industry and the company's market share may be adversely impacted in case the company does not keep ourselves apprised of the latest consumer trends and technology and if the company fails to compete effectively in the markets in which the company operates.
- The company's success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support. The company's success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are managing the Company.
- The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of the company's Equity Shares by its major shareholders may adversely affect the trading price of the company's Equity Shares.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- The company cannot assure the accuracy completeness or reliability of information relating to India the Indian economy and the industry in which the company operates included in this Red Herring Prospectus.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, The company have not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.
- There may be an adverse impact on the company's business, results of operations and financial condition due to implementation of the Labour Codes and changes in labour laws.
- The requirements of being a publicly listed company may strain its resources.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner or at all.
- There is no existing market for the company's Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by the company's Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by the company's Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
The Issue type of Mehul Telecom Ltd is Book Building - SME.
The minimum application for shares of Mehul Telecom Ltd is 2400.
The total shares issue of Mehul Telecom Ltd is 2829600.
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.