IPO Overview
Mehul Telecom Limited is a Gujarat-based multi-brand retail chain specializing in smartphones, consumer electronics, and mobile accessories. Founded as a proprietorship in 2007 and incorporated as a company in May 2023, it operates under the brand name “Mehul Telecom” with a registered office in Rajkot.
The company primarily focuses on the sale of smartphones, which contributes over 98% of its total revenue, complemented by a smaller portfolio of accessories and consumer electronics such as wearables, audio devices, and home appliances. As of the latest reporting period, the company operates a network of 80 stores across 14 districts in Gujarat, including 6 COCO stores and 74 FOFO outlets.
Mehul Telecom aims to raise ₹27.73 crore through a fresh issue of 28,29,600 shares, with a price band of ₹96–₹98 per share.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 17 April 2026 |
| IPO Close Date | 21 April 2026 |
| Allotment Date | 22 April 2026 (Expected) |
| Refund / Credit to Demat | 23 April 2026 |
| Listing Date | 24 April 2026 (Tentative) |
| Price Band | ₹96 – ₹98 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,35,200 (2 lots = 2,400 shares) |
| Minimum Investment (HNI) | ₹3,52,800 (3 lots = 3,600 shares) |
| Issue Size | ₹27.73 crore (~₹28 crore) |
| Fresh Issue | 28,29,600 shares (100%) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no promoter exit.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The Mehul Telecom IPO is a 100% book-built issue, entirely a fresh issue offering. All funds raised will go directly to the company.
Objects of the Issue (Fund Utilization)
The company plans to utilise the proceeds primarily for working capital needs, along with general corporate purposes.
- Working capital requirements
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: Cumulative Capital Pvt. Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
- Email: [email protected]
- Allotment Check: https://ipostatus.kfintech.com/
- Market Maker: Nikunj Stock Brokers Ltd.
Promoters & Management
The promoters of the company are Mr. Mehul Vasantbhai Raymagiya and Ms. Raymagiya Hemali Mehulbhai.
The company started as a proprietorship in 2008 and was incorporated as a private limited company on May 17, 2023, founded by promoter Mehul Vasantbhai Raymagiya, who has been active in the mobile retail space since 2008.
Company Details
Mehul Telecom Limited operates a multi-brand mobile retail chain offering smartphones, electronic products, and accessories through a mix of COCO and FOFO stores. The company sells products from various brands including smartphones and related accessories, along with other consumer electronics such as televisions, air conditioners, refrigerators, wearables, audio devices, and power solutions.
Business Model:
- COCO (Company Owned, Company Operated): 6 flagship stores providing direct brand experience. FOFO (Franchisee Owned, Franchisee Operated): 74 outlets, enabling rapid regional expansion.
- Revenue contribution remains skewed towards COCO stores, which accounted for approximately 72.4% of total revenue in the period ended December 2025, indicating stronger monetization from company-operated outlets.
Brands Retailed: MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi, and Apple (iPhone), among other popular brands.
Geographic Presence:
- 80 stores across 14 districts in Gujarat
- Registered office: Rajkot, Gujarat
Additional Products: Connected lifestyle products and peripherals such as wearables, audio devices, speakers, smartwatches, earphones, headphones, tablets, mobile covers, phone chargers, screen guards, power banks, phone warranty plans, fire sticks, car holder clamps, and pen drives.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹107.37 | ₹2.19 |
| FY25 | ₹121.02 | ₹6.04 |
Key Financial Metrics:
- Revenue growth: ~13% YoY (FY24 to FY25)
- PAT growth: ~176% YoY — strong jump in profitability
- Outstanding borrowings as of January 31, 2026: Secured loans of ₹2.69 crore and unsecured loans of ₹0.94 crore
- Sudden jump in profitability raises concerns of possible earnings normalization post-listing
Company Strengths
- Scalable hybrid COCO and FOFO retail structure allows for rapid expansion with relatively low capital expenditure requirements.
- Wide product portfolio covering smartphones, consumer electronics, wearables, and accessories across all major brands
- India’s ambitious target of US$300 billion in electronics manufacturing and US$120 billion in exports by FY26 supports strong tailwinds for mobile retail demand.
- Established brand presence in Gujarat since 2007/2008 — strong regional recognition and customer loyalty
- Asset-light franchise model enables faster store expansion without heavy capital deployment
- Omnichannel payment support including UPI and digital wallets, aligned with India’s digital payment ecosystem
Key Risks & Challenges
- Regional concentration — operations are restricted to Gujarat, making the company vulnerable to localized economic or political shifts.
- Franchisee reliance — with 92% of stores being franchisee-operated, the brand and revenue are highly dependent on third-party performance.
- Brand dependency — revenue relies on maintaining supply agreements with major manufacturers like Samsung, Apple, and Xiaomi.
- Working capital pressure — high inventory levels across 80 stores require significant capital; mismanagement could severely impact cash flows.
- Very small company with only 27 employees and a limited corporate history (incorporated 2023)
- Generates over 97% revenue from smartphone sales — highly concentrated revenue stream with low margin characteristics in competitive mobile retail.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
