Mehul Telecom IPO Draws 42 Times Subscription on Final Day

Mehul Telecom's IPO Receives Overwhelming Response from Investors

Mehul Telecom, a multi-brand mobile retail chain offering smartphones and accessories, has received an overwhelming response from investors for its initial public offering (IPO). The company's IPO, which was open for subscription from April 17 to 21, received bids for 8.52 crore equity shares against the offer size of 20.4 lakh shares via 18,671 applications.

The IPO received a subscription of 41.81 times on the final day of bidding, April 21. The company is raising Rs 27.73 crore via the IPO of 28.29 lakh shares, which consists entirely of a fresh issue. The price band for the offer is Rs 96-98 per share.

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Mehul Telecom, which operates a total of 80 stores in Gujarat, will finalize the IPO share allotment by April 22. The company's shares will be available for trading on the BSE SME effective April 24. According to market observers, IPO shares traded at around 3-5 percent premium in the grey market.

Prior to the IPO opening, Mehul Telecom had raised Rs 7.7 crore via an anchor book at the upper price band. The company plans to utilize Rs 22.95 crore of the total proceeds from the IPO for its working capital needs, while the remaining funds will be used for general corporate purposes and issue-related expenses.

The company operates a mix of Company Owned, Company Operated (COCO) and Franchisee Owned, Franchisee Operated (FOFO) stores, with 6 COCO stores and 74 FOFO stores in Gujarat. The merchant banker managing the Mehul Telecom IPO is Cumulative Capital.