Merritronix IPO Sees Robust Subscription, Oversubscribed by 293 Times on Final Day

Merritronix IPO Sees Robust Demand from Investors

Merritronix, a Telangana-based electronic solutions company, has witnessed a significant response to its maiden public issue, with investors oversubscribing by 293.31 times on June 3, the final day of bidding. The company received a total of 98.66 crore equity shares against its IPO size of 33.64 lakh shares, with 2.87 lakh applications submitted during June 1-3.

The strong demand for the IPO was driven by investors across various categories, with non-institutional investors leading the charge. They subscribed to their allotted quota 352.98 times, followed by retail investors who subscribed 297.67 times and qualified institutional buyers who subscribed 224.91 times.

The IPO share allotment is expected to be finalised by June 4, with trading in Merritronix shares set to commence on June 8. Market observers have noted that the company's IPO shares are trading at a premium of over 50% in the grey market.

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Merritronix is raising Rs 70.03 crore through its initial public offering (IPO) of 47 lakh shares, priced at the upper end of the band of Rs 141-149 per share. The company plans to utilise Rs 21.36 crore of the IPO proceeds for the purchase of machinery and equipment, and Rs 21.95 crore for working capital requirements. Additionally, Rs 12.7 crore will be used for debt repayment, with the remaining funds allocated for general corporate purposes.

Merritronix is engaged in business-to-business electronic manufacturing services, including component sourcing, printed circuit board assembly, system integration, testing, box-build solutions, and delivery of finished electronic products. The company has an installed manufacturing capacity of 10.75 lakh boards for surface-mount technology (SMT) assembly, 6 lakh boards for through-hole technology (THT) assembly, and 4.2 lakh units for product assembly.