IPO Overview
Incorporated in October 1988, Merritronix Limited is an Electronics Systems Design and Manufacturing (ESDM) company that focuses on producing high-reliability and mission-critical electronic assemblies for sectors such as defence, aerospace, telecom, and industrial electronics. Services offered by the company include sourcing components, assembling printed circuit boards (PCBs), integrating systems, testing, building the box, and delivering finished electronics products as per Indian Defence and Aerospace requirements. The company is headquartered in Hyderabad, Telangana, and its business is heavily aligned with India’s defence electronics ecosystem, with aerospace and defence contributing 97.81% of FY2026 revenue.
The Merritronix IPO is a BSE SME book-building issue aggregating to ₹70.03 crore. The IPO consists entirely of a fresh issue of 47 lakh equity shares with no offer-for-sale component. The IPO opens on 1 June 2026 and closes on 3 June 2026, with listing expected on 8 June 2026 on the BSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| Anchor Investor Date | 29 May 2026 |
| IPO Open Date | 1 June 2026 |
| IPO Close Date | 3 June 2026 |
| Allotment Date | 4 June 2026 (Expected) |
| Credit to Demat | 5 June 2026 |
| Listing Date | 8 June 2026 (Tentative) |
| Price Band | ₹141 – ₹149 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares |
| Minimum Investment (Retail) | ₹2,98,000 (2 lots = 2,000 shares) |
| Minimum Investment (HNI) | ₹4,47,000 (3 lots = 3,000 shares) |
| Issue Size | ₹70.03 crore |
| Fresh Issue | 47,00,000 shares (₹70.03 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Anchor Investors | 13,36,000 shares |
| Qualified Institutional Buyers (QIB) | ~50% (net of anchor) |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | 2,36,000 shares (reserved) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue — all ₹70.03 crore raised will go directly to the company for business purposes.
Objects of the Issue (Fund Utilization)
The company proposes to utilize the net IPO proceeds as follows: ₹21.36 crore for capital expenditure towards purchase of machinery and equipment, ₹21.95 crore for funding working capital requirements, and ₹12.72 crore for repayment/prepayment of outstanding borrowings. The remaining funds will be used for general corporate purposes.
- Capital expenditure — purchase of machinery & equipment: ₹21.36 crore
- Working capital requirements: ₹21.95 crore
- Repayment / prepayment of borrowings: ₹12.72 crore
- General corporate purposes: remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: GYR Capital Advisors Pvt. Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
- Market Maker: Giriraj Stock Broking Pvt. Ltd.
Promoters & Management
The promoters of the company are Dovari Yesudas, Dovari Amarnath, Vanaja D, Darsy Kethan Chandra, and Dovari Thaman. The promoter family brings over three decades of experience in the defence and aerospace electronics manufacturing domain, having built the company since its incorporation in 1988.
Company Details
Merritronix operates as an Electronics Systems Design and Manufacturing (ESDM) player, focusing on high-reliability and mission-critical electronic systems for defence, aerospace, telecommunications, and industrial applications. It follows a B2B model, offering end-to-end electronic manufacturing services including component sourcing, PCB assembly, system integration, testing, and box-build solutions, aligned with stringent quality requirements of India’s strategic sectors. Its core strength lies in manufacturing complex electronic assemblies using advanced Surface Mount Technology (SMT), including Ball Grid Array (BGA) and micro-BGA components used in defence and aerospace systems.
Sectors Served:
- Defence & Aerospace (97.81% of revenue)
- Telecom
- Industrial Electronics
- Power & Utilities
- Heavy Industries
Key Products & Services:
- PCB Assembly (SMT & Through-Hole Technology)
- System Integration & Box-Build Solutions
- Robotic Soldering & Automated Assembly
- Testing & Quality Assurance
- Finished Electronics Delivery (as per Indian Defence standards)
Key Capabilities:
- Recently expanded primary SMD capacity from 7,65,000 boards to 10,75,000 boards per annum by commissioning a new Panasonic line in January 2026.
- As of March 2026, installed annual production capacity of 17.85 lakh units, comprising SMT assembly, through-hole assembly, and box-build integration capabilities.
Manufacturing Facility:
- Located in Hyderabad, Telangana
- As of March 31, 2026, the company employs a staff of 57.
Certifications:
- EN 9100:2018 for manufacturing PCBA in aerospace & defence (equivalent to AS9100D, JISQ 9100:2016, and ISO 9001:2015)
Key Clients:
- Apollo Micro Systems and other defence-focused enterprises and PSUs
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹114.04 | ₹8.66 |
| FY26 | ₹156.25 | ₹16.10 |
Key Financial Metrics
- Revenue rose from ₹113.6 crore in FY25 to ₹155.9 crore in FY26 — growth of over 37% YoY. PAT grew from ₹8.7 crore to ₹16.1 crore — growth of nearly 86% YoY.
- The company has reported strong improvement in revenue, EBITDA, and PAT during FY2026 while maintaining healthy operating margins and return ratios.
- Anchor investors allocated: ₹19.91 crore (strong institutional interest)
Company Strengths
- Comes from the high-growth defence and aerospace electronics manufacturing segment where long-term demand visibility remains structurally strong due to rising indigenous defence manufacturing and electronics localisation initiatives in India.
- Over 35 years of operating history (since 1988) — rare for an SME IPO, indicating strong institutional credibility
- Deep specialization in BGA and micro-BGA components used in mission-critical defence and aerospace systems
- Benefits from specialised manufacturing certifications and strong technological capabilities.
- Entire IPO is fresh issue — all funds directed towards capacity expansion and debt reduction
- Strong anchor investor participation of ₹19.91 crore signals institutional confidence
Key Risks & Challenges
- Extreme revenue concentration: Aerospace and defence contribute 97.81% of FY2026 revenue — any slowdown or policy change in defence procurement can severely impact the business.
- Capacity utilisation concern: Actual capacity utilisation in the SMD section dropped from 89.41% in FY24 to just 65.00% in FY26 — indicating the company is currently unable to extract immediate ROI from its new capex. If the order book does not translate into production volume soon, idle machinery will attract heavy depreciation and maintenance costs, directly impacting EPS and EBITDA margins.
- Defence and aerospace electronics businesses remain execution-sensitive and dependent on long project cycles.
- Very small workforce of 57 employees as of March 2026 — creates key-person and scalability risk
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME
- Export obligations of USD 5,65,236 create foreign exchange exposure risk.
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.
