Merritronix IPO Experiences 64-Fold Subscription in Day 2, Reflecting Persistent Investor Demand
Merritronix Limited
IPOMerritronix IPO Receives Robust Demand from Investors
Merritronix, an electronics solutions provider, has seen its maiden public issue continue to attract robust demand from investors. On the second day of bidding, June 2, the issue received subscriptions 63.78 times, exceeding the offer size.
Issue Details
The public issue, which is set to close on June 3, has attracted bids for 21.45 crore equity shares against an offer size of 33.64 lakh shares. The issue has received 82,359 applications in the last two sessions. Retail and non-institutional investors have been at the forefront of supporting the issue, subscribing 89.25 times and 79.53 times their allotted quotas, respectively.
| Investor Category | Subscription Multiple |
|---|---|
| Retail Investors | 89.25 |
| Non-Institutional Investors | 79.53 |
| Qualified Institutional Buyers | 3.09 |
Merritronix, which specializes in electronic assemblies and systems for defense, aerospace, and telecommunications sectors, is raising Rs 70.03 crore via an initial public offering (IPO) of 47 lakh shares. The IPO consists entirely of a fresh issue.
Anchor Investors
Of the total issue size, Rs 19.9 crore has already been raised by issuing 13.36 lakh shares to 13 anchor investors, including RMS Growth Fund, Finavenue Capital Trust, Meru Investment Fund, HDFC Bank, Vikas India, and Smart Horizon Opportunity Fund.
Use of Proceeds
The company plans to utilize the IPO proceeds in the following manner:
| Purpose | Amount (Rs crore) |
|---|---|
| Purchase of machinery and equipment | 21.36 |
| Working capital requirements | 21.95 |
| Repayment of outstanding borrowings | 12.7 |
| General corporate purposes | Remaining funds |
About Merritronix
Merritronix is engaged in business-to-business electronic manufacturing services, encompassing component sourcing, printed circuit board (PCB) assembly, system integration, testing, box-build solutions, and delivery of finished electronic products. The company has a manufacturing facility with a capacity to produce 10.75 lakh boards for SMT assembly, 6 lakh boards for through-hole technology (THT) assembly, and 4.2 lakh units for product assembly/box build.
Book Running Lead Manager
The book running lead manager for managing the Merritronix IPO is GYR Capital Advisors.
Investor Takeaway
Investors continue to show strong demand for Merritronix' IPO, indicating a potentially successful listing.
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