Mehul Telecom IPO sees healthy demand on day 1, subscribed over 3x

Rajkot-based multi-brand mobile retail chain Mehul Telecom's maiden public issue has attracted healthy demand from across categories of investors, resulting into a 3.38 times subscription on April 17, the first day of bidding.

The company hit Dalal Street to raise Rs 27.73 crore via initial public offering (IPO) of 28.29 lakh shares at the upper end of 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 to boost IPO subscription numbers, 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 - Visionary Value Fund, Darwin Evolution Growth Fund, Krushnam Nexus Capital Scheme, and Nova Global Opportunities Fund - at the upper price band.

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Of the total IPO proceeds, Rs 22.95 crore will be utilised for its working capital needs, and the remaining funds for general corporate purposes, and issue related expenses.

The public issue will remain open till April 21.

Mehul Telecom operates multi-brand mobile retail chain of 80 stores in Gujarat offering smartphones and other electronic products and accessories through its hybrid COCO (company owned, company operated) and FOFO (franchisee owned, franchisee operated) retail models.

Cumulative Capital is acting as the book running lead manager for the Mehul Telecom IPO.