Merritronix, a giant in the electronics manufacturing sector, is bringing its much-awaited Initial Public Offering (IPO) from June 1. Given the company's focus on the defense and aerospace sector and the financial figures that have emerged, there is already a lot of enthusiasm among investors about this issue. Early indications from the gray market are also pointing towards a strong listing in the stock market.
This IPO of this Telangana based company which is preparing to enter the market will be a completely fresh issue. This simply means that the existing promoters of the company are not selling any of their stake. Under this offer, a total of 47 lakh new shares will be issued, from which a target has been set to raise about Rs 70.03 crore from the market. This window of investment for common investors will be open from June 1 to June 3, whereas for big investors (anchor investors) it will be opened only on May 29.
The company has fixed the price band per share between Rs 141 and Rs 149. The share allotment process is expected to be finalized by June 4. After this, listing of shares can happen on BSE SME platform on June 8. For this entire process, GYR Capital Advisors has been entrusted with the responsibility of book running lead manager.
Before investing money in any new company, common investors keep an eye on the movement of Gray Market Premium (GMP). In the case of Meritronics, this figure is giving investors a reason to smile. According to the latest data from Investgain, this stock is currently trading at a strong premium of Rs 45 in the gray market. If the calculation is done according to the upper price band (Rs 149), then investors can get a huge listing gain of about 30 percent on the very first day. However, market experts always advise that the gray market is an informal system where prices change rapidly. Therefore, the final decision of investment should be taken only after understanding the fundamentals of the company.
Meritronics primarily provides business-to-business (B2B) electronic manufacturing services. If we understand it in simple language, this company works in printed circuit board (PCB) assembling, component sourcing, system integration, testing and manufacturing of finished electronic devices. The highest demand for the company's products is in ultra-sensitive sectors like defense and aerospace.
Out of Rs 70 crore raised from the market, the company will use Rs 21.36 crore to purchase new machinery and modern equipment as part of its expansion plans. Apart from this, Rs 21.95 crore has been allocated for smooth running of day-to-day business (working capital). About Rs 12.7 crore will be used to repay old loans, which will make the company's balance sheet even stronger in future. The remaining amount will be spent on general corporate needs.
The future of any company in the stock market depends on its financial performance. Meritronics has presented excellent figures on this front. In the financial year 2026, the net profit of the company has taken a sharp jump of 86 percent to the level of Rs 16.1 crore, which was only Rs 8.7 crore last year.
The company has not disappointed even on the income front. The company's revenue has increased by 37.3 percent to Rs 155.9 crore, whereas a year ago it was Rs 113.6 crore. In the stock market, this company will have direct competition with big listed companies like Centum Electronics and Vinyas Innovative Technologies. On the basis of its strong financials and expansion plans, the company has estimated its total valuation at around Rs 260.5 crore.
