The upcoming listing of Mehul Telecom is seeing a muted response in the grey market, with the premium hovering around 4%. This indicates limited upside for investors on debut despite strong subscription demand. The Rs 28 crore SME IPO, set to list on the BSE SME platform, was subscribed nearly 45 times overall, driven by high-net-worth investors and healthy retail participation.
Mehul Telecom’s business model is relatively asset-light, particularly through the franchise route, allowing for faster expansion with limited capital investment. However, the segment is highly competitive and fragmented, with thin margins and limited pricing power.
Financially, the company reported revenue of over Rs 150 crore for the nine months ended December 2025, with a profit of around Rs 7 crore. EBITDA margins are modest, ranging from 6-7%. The IPO proceeds will primarily fund working capital requirements, aligning with the trading-led business model.
Investor focus will soon shift from subscription numbers to execution, profitability, and the company’s ability to sustain growth in a crowded retail market.
