Mehul Telecom Files DRHP for IPO
By Ankur Chandra | Published at: Jul 15, 2025 12:23 PM IST
Mumbai, 15 July 2025: Mehul Telecom Limited, a fast-growing multi-brand mobile retail chain based in Gujarat, has officially filed its Draft Red Herring Prospectus (DRHP) with the BSE SME platform. The company aims to launch a 100% book-built Initial Public Offering (IPO) of up to 30,00,000 equity shares, each carrying a face value of ₹10. The IPO consists solely of a fresh issue, with no Offer for Sale (OFS) component, and intends to raise capital primarily for expanding its working capital base and funding general corporate expenses.
IPO Structure Reflects Clear Capital Utilisation and Strategic Intent
According to the DRHP, the entire offering is a fresh issue, with 1,50,000 shares reserved for market makers and 28,50,000 shares open to the public. The company is eyeing a listing on the BSE SME platform under the regulatory purview of SEBI ICDR Regulation 229(2).
IPO Snapshot
| Particulars | Details |
|---|---|
| Issue Size | Up to 30,00,000 equity shares |
| Face Value | ₹10 per share |
| Issue Type | 100% Book Built (Fresh Issue) |
| Market Maker Reservation | 1,50,000 shares |
| Net Issue to Public | 28,50,000 shares |
| Listing Exchange | BSE SME |
| Regulation | SEBI ICDR Reg. 229(2) |
Working Capital to Drive Growth: Major Portion of Proceeds Allocated
As per the DRHP (page 81), ₹2,295 lakh of the proceeds will be dedicated to working capital needs, while the remaining portion will be allocated to general corporate purposes, keeping within SEBI’s 15% ceiling for such use. The company has clarified that there is no pre-IPO placement or secondary sale involved.
Strong Financial Performance Signals Operating Momentum
Mehul Telecom’s restated financials reveal an impressive upward trend in revenue, profitability, and operational margins. With strategic expansion in Gujarat, the company has shown marked improvement in financial metrics year-on-year.
Financial Highlights (Restated)
| Particulars | FY25 (₹ lakh) | FY24 (₹ lakh) | FY23 (₹ lakh) |
|---|---|---|---|
| Revenue from Operations | 11,538.45 | 10,719.83 | 8,015.19 |
| Profit After Tax (PAT) | 573.62 | 220.12 | 51.44 |
| EBITDA Margin | 6.63% | 2.83% | 0.92% |
| ROE | 59.84% | 99.32% | 40.95% |
| Inventory Holding (days) | 55.03 | 39.80 | 23.24 |
| Net Capital Turnover (times) | 5.71 | 20.27 | 19.18 |
Dual Retail Model Anchors Growth Across Gujarat
Established in 2023 and converted into a public limited entity in March 2025, Mehul Telecom has scaled operations using a hybrid retail strategy. The company runs 5 COCO (Company Owned, Company Operated) outlets and 59 FOFO (Franchise Owned, Franchise Operated) stores. As of July 2025, its 64 stores span Gujarat, retailing popular brands such as Samsung, MI, Vivo, Oppo, Nokia, OnePlus, and Realme. The product mix includes smartphones, smartwatches, audio accessories, and connected tech devices.
Promoters Retain Majority Stake With Lock-in Period
The company is spearheaded by Mehul Vasantbhai Raymagiya and Raymagiya Hemali Mehulbhai, who together hold 94.25% pre-issue equity. In compliance with SEBI ICDR Regulation 236, the entire promoter holding will be locked in for three years post-issue.
Promoter Shareholding
The company is promoted by Mehul Vasantbhai Raymagiya and Raymagiya Hemali Mehulbhai, who collectively own 94.25% pre-issue equity. The entire promoter holding will be subject to 3-year lock-in as per SEBI ICDR Regulation 236.
| Promoter | Shares Held | Pre-Issue % | WACA (₹) |
|---|---|---|---|
| Mehul Vasantbhai Raymagiya | 39,84,000 | 52.27% | ₹18.57 |
| Raymagiya Hemali Mehulbhai | 32,00,000 | 41.98% | ₹0.16 |
Key Business Risks Identified in DRHP
While the company’s growth trajectory is encouraging, the DRHP also flags certain business risks:
- High geographical concentration, with over 75% revenue from Rajkot and Morbi.
- Inventory-heavy operations leading to a constant need for high working capital.
- Intense online competition from platforms like Flipkart and Amazon, which could pressure pricing and margins.
- Supplier dependency, with top 10 vendors contributing ~59% to total procurement.
IPO Advisors and Listing Details
The IPO is being managed by Cumulative Capital Private Limited as the Book Running Lead Manager, with Kfin Technologies Limited appointed as the registrar. The company will be listed on the BSE SME, and the final bidding dates will be disclosed in the upcoming Red Herring Prospectus.
About Mehul Telecom
Founded in May 2023, Mehul Telecom Limited is headquartered in Rajkot, Gujarat, and operates a growing mobile retail network under a franchise and company-operated model. With its IPO, the company aims to scale its presence and operational capability, focusing on customer reach, supply chain efficiency, and deeper market penetration.
REF: https://www.bsesme.com/download/355456/SME_IPO InPrinciple/Mehul_Telecom_Limited_DRHP_20250714203247.pdf
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