Merritronix IPO Experiences Significant Demand on Debut Day
Merritronix Limited
IPOMerritronix IPO Sees Massive Demand from Investors
Merritronix, an electronics systems design and manufacturing services company, has seen a massive demand from investors for its initial public offering (IPO). The company's IPO, which was launched on June 1, has attracted 14.84 times the demand from investors, exceeding the offer size.
Offer Details
Merritronix has raised Rs 70.03 crore via an entirely fresh issue of 47 lakh shares. The price band for the offer has been fixed at Rs 141-149 per share. The company has already raised Rs 19.9 crore by issuing 13.36 lakh shares to 13 anchor investors, including Small Industries Development Bank of India, HDFC Bank, and Emerge Capital Opportunities Scheme.
Subscription Numbers
Investors have bid for 4.99 crore equity shares on Monday against the offer size of 33.64 lakh shares via 20,258 applications. Retail and non-institutional investors have been at the forefront of the subscription, bidding 22.62 times and 16.01 times their allotted quota, respectively. However, qualified institutional buyers have not put in any bids in the offer.
Premium in Grey Market
Merritronix IPO shares have attracted a premium of around 60 percent in the grey market, according to market observers.
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Utilization of Proceeds
The company intends to utilize Rs 21.36 crore of IPO proceeds for the purchase of machinery and equipment, and Rs 21.95 crore for working capital requirements. Further, Rs 12.7 crore will be used for the repayment of debt, and the remainder funds will be used for general corporate purposes.
Financial Performance
The company's financial performance in recent years has been healthy, with profit in fiscal year 2026 soaring 86 percent to Rs 16.1 crore from Rs 8.7 crore in the previous year. Revenue during the same period grew by 37.3 percent to Rs 155.9 crore from Rs 113.6 crore.
| Year | Profit | Revenue |
|---|---|---|
| 2026 | Rs 16.1 crore | Rs 155.9 crore |
| 2025 | Rs 8.7 crore | Rs 113.6 crore |
Booking Running Lead Manager
GYR Capital Advisors is acting as the sole book running lead manager for the Merritronix IPO.
| Offer Size | Demand | Subscription Ratio | |
|---|---|---|---|
| Retail Investors | 33.64 lakh | 75.43 lakh | 22.62 times |
| Non-Institutional Investors | 33.64 lakh | 54.03 lakh | 16.01 times |
| Qualified Institutional Buyers | 33.64 lakh | 0 | 0 times |
Investor Takeaway
Investors have shown significant demand for Merritronix IPO on its debut day, indicating a positive market sentiment.
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