Updated on 11.04.2026|8:51 PM
Mehul Telecom Limited is set to launch its Initial Public Offering (IPO). It is a prominent multi-brand retail chain in Gujarat specializing in smartphones, electronics, and accessories.
The public issue will open for subscription on Friday, April 17, 2026, and close on Tuesday, April 21, 2026. Find details on all the 2026 IPOs at our latest IPO section which is updated regularly.
Through this 100% book-built fresh issue, the company aims to raise approximately ₹27.73 Crores at the price band of ₹96 – ₹98 per share, primarily to fund its growing working capital requirements.
In this article, you will find Mehul Telecom IPO GMP today, allotment date, price band, and a detailed review with valuations, strength and risks, and financials.
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Briefs of Mehul Telecom IPO Details:
- Price Band: ₹96 – ₹98 per equity share
- Face Value: ₹10 per share
- IPO Open / Close Dates: April 17, 2026 – April 21, 2026
- Lot Size: 1,200 Shares (Note: Retail Minimum Application is 2 Lots / 2,400 Shares)
- Issue Size: 28,29,600 Equity Shares / ~₹27.73 Crores
- Fresh Issue: 100% Fresh Issue
- Registrar: KFin Technologies Limited
- Listing Exchange: BSE SME
If you have issues with registrar regarding allotment, refunds or credit of shares, you can check our detailed guide on KFIN IPO allotment status which may resolve all your queries.
IPO Reservation:
The offering comprises 28,29,600 shares, reserved as follows:
- QIB Portion: Not more than 13,40,400 Equity Shares (Including an Anchor Investor Portion of up to 7,89,600 Equity Shares).
- NII (HNI) Portion: Not less than 4,03,200 Equity Shares.
- Retail (RII) Portion: Not less than 9,42,000 Equity Shares.
WHAT Is The Mehul Telecom IPO GMP Today?
You can check the GMP of this and other issues at our GMP hub page. You can also track how IPOs are performing post listing in our IPO research and data analytics page.
Note: The Grey Market Premium (GMP) changes daily based on market demand. It is an unofficial indicator and is not regularised by SEBI, NSE, or BSE. Investors should not rely solely on GMP for investment decisions.
What Are The Important Mehul Telecom IPO Dates & Allotment Schedule?
For investors planning their capital allocation, here is the critical timeline for the issue:
- IPO Open Date: Friday, April 17, 2026
- IPO Close Date: Tuesday, April 21, 2026
- Basis of Allotment Date: Wednesday, April 22, 2026
- Refund Initiation Date: Thursday, April 23, 2026
- Credit of Shares: Thursday, April 23, 2026
- Listing Date: Friday, April 24, 2026
What Are The Objectives of Mehul Telecom IPO?
The company proposes to utilize the Net Proceeds from the Fresh Issue towards the following strategic purposes:
- Working Capital: A significant portion of ₹22.95 Crores is earmarked for meeting incremental working capital requirements. This is crucial for maintaining a wide variety of inventory across its 80 stores and supporting bulk procurement to secure better margins.
- General Corporate Purposes: The remaining funds (capped at 15% of gross proceeds) will be deployed for strategic initiatives, brand building, and ongoing operational contingencies.
How is The Financial Performance of Mehul Telecom?
The following table summarizes the financial performance of the company based on restated financial statements.
(Figures in ₹ Crores)
Particulars | Period Ended 31 Dec 25 (9M) | FY 2024-25 | FY 2023-24 | FY 2022-23 |
Total Income | 152.02 | 121.02 | 107.37 | 80.27 |
Profit After Tax (PAT) | 7.07 | 6.04 | 2.19 | 0.51 |
EBITDA | 9.71 | 8.02 | 3.04 | 0.73 |
Assets | 54.41 | 34.41 | 22.58 | 13.00 |
Source: RHP
Note: FY25 and FY24 figures are a combination of the corporate entity and its erstwhile proprietorship.
Financial Analysis & Observations:
Total Income:
The company demonstrated robust revenue growth, jumping from ₹80.27 Crores in FY23 to ₹121.02 Crores in FY25.
The momentum accelerated in the 9-month period ending December 2025, reaching ₹152.02 Crores, driven by the rapid expansion of its Franchisee Owned Franchisee Operated (FOFO) store network.
Profit After Tax (PAT):
Profitability surged remarkably, with PAT expanding from just ₹0.51 Crores in FY23 to ₹6.04 Crores in FY25.
The PAT for the 9-month stub period of FY26 stood at ₹7.07 Crores, reflecting successful cost optimization and volume-driven margin expansion.
EBITDA:
Operational efficiency improved significantly, with EBITDA margins expanding from less than 1% in FY23 to 6.63% in FY25.
The absolute EBITDA of ₹9.71 Crores in just nine months of FY26 underscores the scalability of the FOFO model.
Assets:
The asset base expanded rapidly to ₹54.41 Crores by December 2025. This growth is predominantly fueled by an increase in current assets, specifically inventories (₹24.86 Crores), which is a characteristic necessity for a growing retail electronics chain.
What Are the P/E Ratio and Peer Comparison?
Based on its Fiscal Year 2025 earnings per share (EPS) of ₹8.30, the IPO is priced at a Price-to-Earnings (P/E) multiple of approximately 11.80x at the upper end of the price band (₹98).
P/E Ratio = ₹98(Price) / ₹8.30 (Earnings Per Share)
P/E Ratio ≈ 11.80x
Peer Comparison Table (FY 2025 Data):
Company | P/E Ratio | RoNW (%) | EPS (₹) | Revenue (₹ Lakhs) |
Mehul Telecom | 11.80 | 35.31 | 8.30 | 12,088.66 |
Fonebox Retail | 14.45 | 13.18 | 4.43 | 34,273.60 |
Jay Jalaram Tech | 17.13 | 10.02 | 5.27 | 33,909.15 |
Bhatia Communications | 18.94 | 15.56 | 1.10 | 44,271.74 |
Analysis:
Mehul Telecom is entering the market at a P/E multiple of approximately 11.80x based on its FY25 EPS. When compared to its listed peers like Fonebox Retail (14.45x) and Bhatia Communications (18.94x), the issue appears to be priced at a discount.
More importantly, Mehul Telecom has a Return on Net Worth (RoNW) of 35.31%, vastly outperforming its peers, which suggests highly efficient capital utilization despite its smaller revenue scale.
What is The Industry Outlook of Mehul Telecom Limited?
Growth Potential:
India is the second-largest smartphone market globally. The growing middle class, rising disposable incomes, and the ongoing 5G upgrade cycle provide strong tailwinds for mobile and electronics retailers.
Market Trends:
While e-commerce holds a significant share, the offline retail segment is fighting back through the "omnichannel" approach, offering customers the "touch and feel" experience combined with instant financing options at the store level.
What Are The Strengths and Risks of Mehul Telecom IPO?
Strengths:
- Scalable Asset-Light Model: The heavy reliance on the FOFO (Franchise) model allows for rapid geographical expansion without heavy upfront capital expenditure.
- High Return Ratios: A stellar RoNW of 35.31% (FY25) indicates excellent management of shareholder funds.
- Regional Dominance: A concentrated network of 80 stores provides strong brand visibility and bargaining power with local distributors in Gujarat.
Risks:
- Geographic Concentration: 100% of revenue comes from Gujarat, with the Rajkot and Morbi districts alone contributing over 82%. Any regional disruption could severely impact business.
- Negative Cash Flows: The company reported negative operating cash flows recently (₹-3.57 Crores in Dec '25) due to the heavy working capital required to stock inventory for new stores.
- Intense Competition: The sector is hyper-competitive, facing immense pricing pressure from both e-commerce giants and unorganized local retailers.
Key Considerations for Investors
This section is neutral and for informational purposes only.
- Minimum Investment: Investors should note the high entry barrier. The minimum application for Retail Individual Investors is 2 Lots (2,400 Shares), amounting to ₹2,35,200. Note: This investment amount exceeds the typical ₹2 Lakh retail limit, effectively treating retail applicants as Small-HNI.
- Valuation: At ~11.8x P/E, the pricing leaves room for upside compared to industry peers, especially given the superior return ratios.
- Risk Profile: The company demonstrates high growth and profitability, but the severe geographic concentration and negative cash flows require careful consideration.
Key Takeaways
- IPO Price: ₹98 per share (Upper Band).
- Min Investment: ₹2,35,200 (2,400 Shares).
- Allotment: April 22, 2026.
- Listing: BSE SME platform on April 24, 2026.
FAQs on Mehul Telecom IPO
What is Mehul Telecom IPO GMP today?
The GMP is a dynamic market sentiment indicator. Check it at our gmp today page.
What is Mehul Telecom IPO price band?
The price band is fixed at ₹96 to ₹98 per equity share.
What is Mehul Telecom IPO allotment date?
The allotment status is expected to be finalized on Wednesday, April 22, 2026.
How to check Mehul Telecom IPO allotment status?
Investors can check the status on the website of KFIN Technologies Limited (the Registrar) or via the BSE IPO allotment portal. You can check allotment status related information at our allotment hub page for this and other IPOs too.
What is Mehul Telecom IPO listing date?
The shares are tentatively scheduled to list on Friday, April 24, 2026.
Investment Perspective on Mehul Telecom IPO
Mehul Telecom offers a compelling high-growth opportunity in the retail electronics space with impressive return ratios and an asset-light expansion model.
While the valuation is attractive relative to peers, the extreme geographic concentration and working capital intensity are critical risk factors to weigh against the growth potential.
Disclaimer:
This article is strictly for educational purposes. Please consult a SEBI-registered investment advisor before making any investment decisions.
