Rajkot-based multi-brand mobile retail chain Mehul Telecom’s maiden public issue has attracted healthy demand from across categories of investors, resulting in a 3.38 times subscription on April 17, the first day of bidding. The company aims to raise Rs 27.73 crore via an initial public offering (IPO) of 28.29 lakh shares at the upper end of the price band of Rs 96-98 per share.
The public issue has received bids for 69.04 lakh shares on Friday against the offer size of 20.4 lakh shares via 1,455 applications. Non-institutional investors led the charge, bidding 7.24 times their allotted quota, while the portions set aside for retail investors and qualified institutional buyers were subscribed 2.34 times and 1.35 times, respectively.
Mehul Telecom already raised Rs 7.73 crore by issuing 7.89 lakh shares to four anchor investors at the upper price band. Of the total IPO proceeds, Rs 22.95 crore will be utilized for working capital needs, with the remaining funds allocated for general corporate purposes and issue-related expenses. The public issue will remain open until April 21. Cumulative Capital is acting as the book running lead manager for the Mehul Telecom IPO.
