Mehul Telecom shares list at 10% premium over IPO price on BSE SME platform

Shares of Mehul Telecom made their D-Street debut on Friday, listing at a premium over the IPO price. The stock opened at Rs 108 apiece on the BSE SME platform as against the issue price of Rs 98.

The listing exceeded the unlisted market’s expectations, which had suggested a subdued opening for the stock. The GMP on Mehul Telecom shares was indicating a premium of around 4% just ahead of the debut.

The Rs 28 crore SME IPO saw robust interest during the bidding period, getting subscribed nearly 45 times overall. The strong response was led by high-net-worth investors, while retail participation also remained healthy.


Mehul Telecom operates a multi-brand mobile retail chain, selling smartphones and related accessories through a mix of company-owned and franchise-operated stores. Its operations are largely concentrated in Gujarat, with a product portfolio spanning major smartphone brands and peripheral devices.

The business model is relatively asset-light, especially through the franchise route, which allows faster expansion with limited capital investment. However, the segment remains highly competitive and fragmented, with thin margins and limited pricing power.

Financially, the company has shown growth in recent periods. Revenue rose to over Rs 150 crore for the nine months ended December 2025, while profit stood at around Rs 7 crore. However, margins remain modest, with EBITDA margins in the range of 6-7%, indicating limited operating leverage.

The IPO proceeds are primarily being used to fund working capital requirements, which aligns with the company’s trading-led business model. Unlike manufacturing or technology-led companies, the growth here is closely tied to inventory cycles and retail expansion.

For investors, the key question will be whether the company can scale beyond its current regional presence and improve margins over time. While the business offers steady demand linked to smartphone penetration, the lack of differentiation and intense competition remain structural challenges.

In the near term, the listing performance is likely to remain modest unless there is a sharp shift in sentiment. The current grey market trend indicates that while the IPO has seen strong demand on paper, expectations for immediate gains remain measured.

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