Merritronix IPO booked 315x on Day 3; GMP signals strong listing gains of 52%

The initial public offering (IPO) of Merritronix, which opened for subscription on June 1, closed today, June 3, with a solid response from investors. The SME IPO had sailed through on the first day of the book-building process amid a strong grey market premium (GMP).

The ₹70.03-crore SME IPO is entirely a fresh issue of 0.47 crore shares. Merritronix IPO price band was set at ₹141-149 per equity share with a face value of ₹10 each. Investors can bid for a minimum of 1,000 shares and in multiples thereof.

The company plans to use the proceeds for business expansion and general corporate purposes.

Ahead of the IPO launch, Merritronix raised ₹19.91 crore from anchor investors through the allotment of 13.36 lakh equity shares.

The allotment of Merritronix IPO will be finalised tomorrow, 4 June, with the listing likely next week on 8 June on BSE SME.

Merritronix IPO GMP

Merritronix IPO GMP stood at ₹78 on the final day. Based on the upper end of the price band at ₹149, the estimated listing price works out to ₹227 per share, indicating a potential premium of about 52.35%.

According to market observers, the GMP hit a high of ₹93 and a low of ₹45. The grey market premium signals investor willingness to pay above the offer price.

Merritronix IPO subscription status

Merritronix IPO was subscribed 314.91 times so far on the final day of bidding. The retail investor portion was subscribed 296.80 times, while the non-institutional investor (NII) category was booked 476.52 times. The qualified institutional buyer (QIB) segment received 224.91 times bids.

According to data available at 4.50 pm, investors had bid for 98,50,32,000 crore shares against the 31,28,000 shares on offer.

About the company

Merritronix operates in the Electronics Systems Design and Manufacturing (ESDM) sector and manufactures high-reliability, mission-critical electronic assemblies for industries such as defence, aerospace, telecommunications and industrial electronics.

Merritronix follows a business-to-business (B2B) model and offers end-to-end electronic manufacturing services, including component sourcing, printed circuit board (PCB) assembly, system integration, testing, box-build assembly and delivery of fully integrated electronic products.

The company caters to sectors such as defence and aerospace and manufactures products that comply with India's stringent industry standards.

GYR Capital Advisors is the book-running lead manager to the issue, while Bigshare Services is the registrar. Giriraj Stock Broking is acting as the market maker.