Mehul Telecom IPO lists with stronger-than-expected debut. The stock opened at Rs 108 on the BSE SME platform, representing a 10% premium over the Rs 98 issue price, defying grey market predictions of a subdued opening. The Rs 28 crore offering received exceptional demand, getting subscribed nearly 45 times with strong participation from high-net-worth investors and retail buyers. The multi-brand mobile retail chain, operating primarily across Gujarat, demonstrated robust business fundamentals with revenues exceeding Rs 150 crore for the nine months ended December 2025 and profits around Rs 7 crore. However, investors should note that EBITDA margins remain modest at 6-7%, reflecting the highly competitive nature of the retail smartphone segment. The asset-light franchise model enables faster expansion but faces structural challenges including thin margins and limited pricing power.
Post from MarketNews_en
Log in to interact with content.