Mehul Telecom IPO Sees Strong Demand on First Trading Day, Receives Over Three Times Subscription

Mehul Telecom's Maiden IPO Sees Healthy Demand from Investors

Rajkot-based multi-brand mobile retail chain Mehul Telecom's initial public offering (IPO) has garnered significant interest from various categories of investors, resulting in a subscription of 3.38 times on the first day of bidding, April 17.

The company has launched an IPO to raise Rs 27.73 crore by issuing 28.29 lakh shares at the upper end of its price band of Rs 96-98 per share. The public issue received bids for 69.04 lakh shares on Friday against the offer size of 20.4 lakh shares, with 1,455 applications submitted.

| Category of Investors | Allotted Quota | Subscription Times | | --- | --- | --- | | Non-Institutional Investors | | 7.24 | | Retail Investors | | 2.34 | | Qualified Institutional Buyers | | 1.35 |

As per the data, non-institutional investors led the charge, bidding 7.24 times their allotted quota, while the portions set aside for retail investors and qualified institutional buyers were subscribed 2.34 times and 1.35 times, respectively.

Prior to the public issue, Mehul Telecom had already raised Rs 7.73 crore by issuing 7.89 lakh shares to four anchor investors - Visionary Value Fund, Darwin Evolution Growth Fund, Krushnam Nexus Capital Scheme, and Nova Global Opportunities Fund - at the upper price band.

The company plans to utilize Rs 22.95 crore from the total IPO proceeds for its working capital needs and the remaining funds for general corporate purposes and issue-related expenses. The public issue will remain open till April 21.

Mehul Telecom operates a multi-brand mobile retail chain with 80 stores in Gujarat, offering smartphones and other electronic products and accessories through its hybrid COCO (company owned, company operated) and FOFO (franchisee owned, franchisee operated) retail models. Cumulative Capital is acting as the book running lead manager for the Mehul Telecom IPO.