Mehul Telecom Limited, a Gujarat-based multi-brand mobile retail chain, opens its SME IPO for subscription on April 17, 2026 and closes on April 21. The company plans to list on BSE SME on April 24. Here is everything you need to know before deciding whether to apply.
IPO at a Glance
| Open Date | April 17, 2026 |
| Close Date | April 21, 2026 |
| Listing Date | April 24, 2026 (BSE SME) |
| Price Band | ₹96 – ₹98 per share |
| Lot Size | 1,200 shares |
| Min. Retail Application | 2 lots = 2,400 shares = ₹2,35,200 |
| Min. HNI Application | 3 lots = 3,600 shares = ₹3,52,800 |
| Issue Size | ₹27.73 Crore (100% fresh issue, no OFS) |
| Registrar | KFin Technologies Ltd. |
| Lead Manager | Cumulative Capital Pvt. Ltd. |
| Allotment Date | April 22, 2026 |
About the Company
Mehul Telecom is a Gujarat-based multi-brand mobile retail chain operating through a hybrid COCO (Company Owned Company Operated) and FOFO (Franchise Owned Franchise Operated) model. As of March 2026, the company operates 80 stores across 14 districts in Gujarat — 6 COCO and 74 FOFO outlets. Smartphones account for over 97% of total revenue, with accessories, wearables, and home appliances making up the remainder.
Use of IPO Proceeds
- Primary use: Working capital requirements for the retail operations
- Secondary use: General corporate purposes
- No debt repayment component — the issue is entirely a fresh issue with no OFS
- No major capex plan disclosed — growth is through franchise expansion (asset-light)
Key Positives
- 100% fresh issue — all proceeds go into the business, not promoter pockets
- Asset-light FOFO franchise model enables rapid scalability
- Strong revenue growth in recent periods indicating improving scale
- 80-store network across 14 districts provides decent geographic spread within Gujarat
- Operates in a high-demand segment — smartphone penetration in India continues to grow
Key Risks & Red Flags
- Smartphones are 97%+ of revenue — single product concentration risk is very high
- Highly competitive segment with Reliance Digital, Croma, Sangeetha, and regional players
- FOFO model means revenue recognition depends on franchise performance, not direct control
- Sudden profitability jump in FY25 onwards raises concerns about earnings sustainability post-listing
- Only 27 employees as of March 2026 — very lean team for 80 stores, operational scalability risk
- Limited track record as a public company — SME-stage fundamentals
- Current IPO market is in a 'cautious' phase with weak listing performance
Current GMP Signal
As of the time of publishing, the grey market premium for Mehul Telecom IPO has not shown a strong positive signal. GMP data will be updated on our live GMP tracker as subscription progresses. Check the SMEGMP GMP Tracker page for the latest figures before applying.
Our View: Mehul Telecom is a micro-cap retail play with limited product diversity and a franchise-heavy model in a highly competitive space. Given the current weak IPO market and cautious GMP sentiment, approach with caution. If you choose to apply, do so for minimum lots and monitor QIB participation on Day 2–3 of subscription for market signals.