Merritronix Ltd IPO: Opens on 1 June 2026, Price Band, Business Overview, Risks and IPORupee Insight

Published on 29 May 2026, Friday

Merritronix Ltd IPO: Opens on 1 June 2026, Price Band, Business Overview, Risks and IPORupee Insight

Published on 29 May 2026, Friday

Merritronix Ltd IPO is scheduled to open on Monday, 01 June 2026 and close on Wednesday, 03 June 2026. This is an SME IPO proposed to be listed on BSE SME. The IPO price band is Rs. 141 to Rs. 149 per share, and the lot size shown is 1000 shares.

IPO Rupee Pre-Opening Announcement

Price BandRs. 141 - Rs. 149

Lot Size1000 Shares

Fresh Issue70.03 Cr

OFSNil

ListingBSE SME

IPO Details Application Note Business Objects Financials Risks Insight Disclaimer

Merritronix IPO Basic Details

Particulars	Details
Company Name	Merritronix Ltd
IPO Segment	SME IPO
Issue Type	100% Book Built Issue
Open Date	Monday, 01 June 2026
Close Date	Wednesday, 03 June 2026
Price Band	Rs. 141 - Rs. 149
Lot Size	1000 shares
Listing	BSE SME
Fresh Issue	Rs. 70.03 Cr
OFS	Nil
Total IPO Size	Rs. 70.03 Cr
QIB Quota	49.91%
Retail Quota	35.03%
Total HNI Quota	15.06%
BRLM	GYR Capital Advisors Private Limited
Registrar	Bigshare Services Private Limited
Promoters	Dovari Yesudas, Dovari Amarnath, Vanaja D, Darsy Kethan Chandra and Dovari Thaman

Issue Structure: The IPO is a pure fresh issue. There is no Offer for Sale. This means the IPO proceeds will go to the company and not to selling shareholders.

Important Note on Lot Size and Application Amount

The IPO detail screen shows lot size as 1000 shares.

1000 shares x Rs. 149 = Rs. 1,49,000

However, the RHP defines the minimum application size for Individual Investors as two lots, so that the minimum application size is above Rs. 2 lakh.

2000 shares x Rs. 149 = Rs. 2,98,000

IPORupee Note: This is very important for retail investors. In SME IPOs, the displayed lot size and the actual minimum application quantity may create confusion. Always check the final bid quantity and blocked amount before approving the UPI mandate.

IPO Rupee Pre-Opening Announcement

Merritronix Ltd IPO is opening soon. The IPO will open on 01 June 2026 and close on 03 June 2026. The price band is Rs. 141 to Rs. 149 per share.

The company is coming with a pure fresh issue of up to 47,00,000 equity shares. There is no OFS. This means IPO funds will be used by the company for business purposes.

IPORupee Reminder: Because the IPO has not opened yet, investors have time to study the company’s business model, order book, customer concentration, sector concentration, working capital requirement, cash flow, debt, capex plan and SME liquidity risk before applying.

One-Minute IPO Summary

Merritronix Ltd is an electronics manufacturing services company operating in the ESDM sector. It mainly provides B2B electronics systems design and manufacturing services. The company has exposure to specialised sectors such as aerospace and defence, telecom, industrial electronics and complex PCB assembly.

The company has shown strong revenue and profit growth. Revenue from operations increased from Rs. 8,569.91 lakh in FY 2024 to Rs. 11,356.38 lakh in FY 2025 and further to Rs. 15,589.56 lakh in FY 2026. PAT increased from Rs. 305.03 lakh in FY 2024 to Rs. 865.95 lakh in FY 2025 and Rs. 1,610.30 lakh in FY 2026.

IPORupee Quick View: Merritronix IPO has positives like fresh issue structure, strong revenue growth, improved profitability, aerospace and defence exposure, healthy order book and improved debt-equity ratio. But investors should carefully study high customer concentration, Telangana revenue concentration, aerospace and defence industry dependence, negative operating cash flow, working capital pressure, supplier concentration, related-party lease arrangement and SME IPO liquidity risk.

Business Overview

Merritronix Ltd operates as a B2B Electronics Systems Design and Manufacturing services provider. The company manufactures and assembles electronics products for specialised industrial and defence ecosystems.

Business Area	Meaning
ESDM Services	Electronics Systems Design and Manufacturing
PCBA / PCB Assembly	Manufacturing and assembly of printed circuit boards
Turnkey Manufacturing / Build-to-Print	Manufacturing as per customer design/specification
Obsolescence Engineering Management	Support for old/obsolete components and systems
Job Work	Manufacturing or assembly work for customers
Trading Sales	Trading of electronics-related products/components

IPORupee Interpretation: This business model can be attractive because electronics manufacturing, aerospace and defence electronics are specialised areas. But the company may have limited pricing power because it works for B2B customers and usually manufactures as per customer requirements.

Revenue Mix: Turnkey Manufacturing Dominance

A major portion of revenue comes from Turnkey Manufacturing / Build-to-Print activities.

Product Segment	FY 2026	FY 2025	FY 2024
Turnkey Manufacturing / Build-to-Print	92.07%	82.64%	80.72%
Obsolescence Engineering Management	6.53%	8.07%	12.75%
Trading Sales	0.64%	7.31%	3.84%
Job Work	0.76%	1.98%	2.69%

IPORupee Interpretation: The company’s business is heavily dependent on turnkey manufacturing. This is positive if the company can continue getting repeat orders and maintain quality. But it is also a concentration risk because any slowdown, delay or pricing pressure in this segment can affect revenue and margins.

Industry Exposure: Aerospace and Defence Heavy

Industry	FY 2026	FY 2025	FY 2024
Aerospace and Defence	97.81%	88.50%	80.26%
Complex PCBA and NPI	2.00%	2.28%	2.89%
Medical Electronics	0.03%	0.01%	0.03%
Micro Electronics	0.16%	6.81%	12.64%
Others	Nil	2.40%	4.18%

IPORupee Interpretation: Aerospace and defence exposure can be a strong positive because these sectors require high reliability, quality systems and technical capability. However, very high dependence on one industry also creates risk.

Geographic Concentration: Telangana

Region	FY 2026	FY 2025	FY 2024
Telangana Revenue Contribution	98.19%	95.63%	88.85%

IPORupee Interpretation: This is a major concentration risk. If any local business disruption, policy change, regional slowdown, customer change or operational issue affects Telangana operations, the company may be impacted because revenue diversification across geographies is limited.

Order Book

As on April 30, 2026, the company had an order book of Rs. 9,664.91 lakh.

IPORupee View: A healthy order book gives some revenue visibility. But an order book is not guaranteed revenue. Orders may face execution delays, customer changes, payment delays, scope changes or cancellation risk. Retail investors should not look at order book alone; they should also check cash flow and working capital.

Objects of the Issue

Object	IPORupee Explanation
Purchase of plant and machinery	To increase/upgrade manufacturing capability.
Working capital requirements	To fund inventory, receivables and execution cycle.
Repayment / prepayment of certain borrowings	To reduce debt burden.
General corporate purposes	For permitted business purposes.

The RHP states that orders worth Rs. 2,136.43 lakh, representing 100% of the estimated cost of machinery and equipment, are yet to be placed.

IPORupee Interpretation: The objects are business-oriented because the funds are going toward machinery, working capital and debt repayment. But the fact that machinery orders are yet to be placed is a watch point. Delays in placing orders, price changes or procurement issues can affect the implementation schedule.

Financial Performance

Particulars	FY 2026	FY 2025	FY 2024
Revenue from Operations	Rs. 15,589.56 lakh	Rs. 11,356.38 lakh	Rs. 8,569.91 lakh
Total Income	Rs. 15,624.83 lakh	Rs. 11,404.00 lakh	Rs. 8,601.33 lakh
EBITDA	Rs. 2,721.68 lakh	Rs. 1,518.11 lakh	Rs. 672.64 lakh
EBITDA Margin	17.42%	13.31%	7.82%
PAT	Rs. 1,610.30 lakh	Rs. 865.95 lakh	Rs. 305.03 lakh
PAT Margin	10.33%	7.63%	3.56%
Net Worth	Rs. 5,252.28 lakh	Rs. 1,623.47 lakh	Rs. 757.52 lakh
RoE	46.03%	69.21%	45.82%
RoCE	45.26%	66.21%	43.13%
NAV per Share	Rs. 41.56	Rs. 15.46	Rs. 7.51
Debt-Equity Ratio	0.81x	1.10x	1.93x

IPORupee Financial Reading: Merritronix has shown strong financial improvement. Revenue increased consistently over three years, profitability improved sharply, and debt-equity ratio improved from 1.93x in FY 2024 to 0.81x in FY 2026.

Cash Flow Watch

Particulars	FY 2026	FY 2025	FY 2024
Net Cash Flow from Operating Activities	Rs. (2,338.21) lakh	Rs. (664.33) lakh	Rs. 453.24 lakh

IPORupee View: Profit growth is strong, but cash conversion is weak. For a manufacturing company with long project cycles, this is important. Investors should check whether future growth converts into actual cash or continues to remain blocked in inventory and receivables.

Working Capital Analysis

Particulars	FY 2026	FY 2025	FY 2024
Inventories	Rs. 7,130.76 lakh	Rs. 3,968.62 lakh	Rs. 3,349.77 lakh
Trade Receivables	Rs. 3,654.65 lakh	Rs. 2,035.91 lakh	Rs. 1,118.73 lakh
Total Working Capital	Rs. 6,532.88 lakh	Rs. 2,958.80 lakh	Rs. 1,195.85 lakh
Borrowings for Working Capital	Rs. 4,183.43 lakh	Rs. 1,720.28 lakh	Rs. 1,195.85 lakh

IPORupee Interpretation: Working capital has increased sharply. Inventory and receivables both increased significantly in FY 2026. This shows that the company needs substantial funds to support growth.

Customer Concentration

Customer Group	FY 2026	FY 2025	FY 2024
Top 1 Customer	62.08%	63.16%	59.77%
Top 5 Customers	80.11%	85.59%	84.34%
Top 10 Customers	89.36%	95.22%	92.28%

IPORupee Interpretation: This is one of the biggest red flags. One customer contributed more than 62% of revenue in FY 2026. Top 10 customers contributed nearly 90% of revenue. If a major customer reduces orders, delays payments, changes vendors or cancels a project, the company’s revenue and cash flow can be affected.

Supplier Concentration

Supplier Group	FY 2026	FY 2025	FY 2024
Top 1 Supplier	17.19%	21.61%	17.54%
Top 3 Suppliers	35.95%	46.93%	44.27%
Top 5 Suppliers	52.01%	64.89%	63.73%
Top 10 Suppliers	90.74%	87.71%	91.56%

IPORupee Interpretation: Top 10 suppliers contribute more than 90% of purchases. Electronics manufacturing depends on timely availability of PCB, semiconductors, ICs, microcontrollers, connectors and other components. Any delay, price increase or supply disruption can affect production schedule and margins.

Capacity Utilisation

Section	FY 2026	FY 2025	FY 2024
SMD Section	65.00%	82.94%	89.41%
TMD Section	99.00%	99.00%	94.00%
Box Build	98.93%	98.93%	95.00%

IPORupee Interpretation: TMD and Box Build sections are running at very high utilisation, which shows strong usage. But SMD utilisation declined to 65% in FY 2026, partly due to capacity expansion from new machinery.

Debt and Borrowing

As on March 31, 2026, Merritronix had total outstanding borrowings of Rs. 4,319.74 lakh. Secured borrowings stood at Rs. 4,065.67 lakh, forming 94.12% of total indebtedness.

IPORupee View: Debt-equity ratio has improved, which is positive. But the company still has significant borrowings, and working capital borrowings have increased with business growth. Investors should monitor whether IPO proceeds reduce financial pressure and whether future growth remains cash efficient.

Management and Promoters

The promoters of Merritronix Ltd are Dovari Yesudas, Dovari Amarnath, Vanaja D, Darsy Kethan Chandra and Dovari Thaman.

The RHP states that the promoters and promoter group hold 85.17% of the issued and outstanding paid-up share capital before the issue.

IPORupee Management View: High promoter holding shows promoter control and skin in the game. But after listing also, promoters will continue to influence major decisions. Retail investors should watch governance quality, related-party transactions, disclosure practices and capital allocation after listing.

Governance Watch: The RHP states that none of the executive directors have experience of being directors of a public listed company. This is a governance watch point because listed company compliance is more demanding than private company operations.

Green Flags

1. Pure fresh issue

There is no OFS. IPO proceeds will go to the company.

2. Strong revenue growth

Revenue from operations increased from Rs. 8,569.91 lakh in FY 2024 to Rs. 15,589.56 lakh in FY 2026.

3. Strong PAT growth

PAT increased from Rs. 305.03 lakh in FY 2024 to Rs. 1,610.30 lakh in FY 2026.

4. Margin improvement

EBITDA margin improved from 7.82% in FY 2024 to 17.42% in FY 2026.

5. Improved debt-equity ratio

Debt-equity ratio improved from 1.93x in FY 2024 to 0.81x in FY 2026.

6. Aerospace and defence exposure

The company has strong exposure to specialised aerospace and defence electronics.

7. Healthy order book

The company had an order book of Rs. 9,664.91 lakh as on April 30, 2026.

8. Quality certifications

The RHP mentions EN 9100:2018 certification and quality systems for aerospace and defence applications.

Red Flags

1. High customer concentration

Top 1 customer contributed 62.08% of revenue in FY 2026, and top 10 customers contributed 89.36%.

2. Negative operating cash flow

Operating cash flow was negative in FY 2026 and FY 2025.

3. High working capital requirement

Total working capital increased from Rs. 1,195.85 lakh in FY 2024 to Rs. 6,532.88 lakh in FY 2026.

4. High supplier concentration

Top 10 suppliers contributed 90.74% of total purchases in FY 2026.

5. Geographic concentration

Telangana contributed 98.19% of revenue from operations in FY 2026.

6. Industry concentration

Aerospace and defence contributed 97.81% of revenue in FY 2026.

7. Machinery orders not yet placed

Orders worth Rs. 2,136.43 lakh for plant and machinery are yet to be placed.

8. Leased related-party premises

The registered office and manufacturing facility are leased from a related party.

9. Past compliance issues

The RHP mentions past Companies Act non-compliances, compounding, untraceable historical corporate records and some statutory filing delays.

10. Listed-company experience risk

None of the executive directors have prior experience as directors of a public listed company.

11. SME IPO liquidity risk

SME IPOs may have lower trading liquidity and higher post-listing volatility.

Electronics Manufacturing Business Risk Explainer

Electronics manufacturing is not only about assembling products. It involves component sourcing, quality checks, testing, customer audits, delivery schedules and technology upgrades.

Component shortage

Semiconductor, IC, PCB and connector availability can affect production timelines.

Long working cycle

Project-based manufacturing can block cash in inventory, WIP and receivables.

Quality rejection risk

High-reliability electronics require strict quality checks and customer audits.

Customer concentration

Large customer dependence can create revenue volatility.

Technology change

New equipment and changing customer specifications may require continuous capex.

Execution delay

Orders can be delayed due to raw material, approvals, testing or customer acceptance.

SME IPO Risk Box

Merritronix Ltd is an SME IPO. SME IPOs may offer growth opportunities, but they also carry higher risk.

Lower liquidity

Post-listing trading volume may be lower than mainboard stocks.

Higher volatility

Price movement can be sharp due to low float and limited participation.

Large application amount

SME IPO lot size can require higher investment amount.

Limited research coverage

SME companies usually have fewer analyst reports.

Difficult exit

Exit may be difficult if trading volume is low.

Promoter dependence

Business may remain highly dependent on promoter decisions.

IPORupee Reminder: Before applying to an SME IPO, investors should first check whether they can hold the stock if listing liquidity is low. SME IPOs should not be treated only as listing-gain opportunities.

IPORupee Deep Insight

Merritronix Ltd IPO is a pure fresh issue, which is positive because the IPO proceeds will go to the company. The company operates in the ESDM sector and has strong exposure to aerospace and defence electronics, which is a specialised and technically demanding area.

The financial growth is impressive. Revenue, EBITDA and PAT have all improved strongly from FY 2024 to FY 2026. Margin expansion is also visible, and debt-equity ratio has improved.

However, this IPO has important risk areas. The biggest concern is concentration. The company depends heavily on a few customers, one state, one industry and a limited number of suppliers. Top 1 customer alone contributed more than 62% of revenue in FY 2026, while aerospace and defence contributed nearly 98% of revenue.

Cash flow is another key watch point. Despite strong profit growth, operating cash flow was negative in FY 2026 and FY 2025 because cash was blocked in inventory, receivables and working capital. This is common in project-based manufacturing, but it should be monitored carefully.

The company also plans to use IPO funds for plant and machinery, but orders for the proposed machinery are yet to be placed. This creates execution risk. Also, the company’s registered office and manufacturing facility are leased from a related party, which investors should note from a governance perspective.

IPORupee View: Merritronix IPO may interest investors who understand SME IPO risk and electronics manufacturing risk. The company has strong growth, improved margins, specialised aerospace and defence exposure and a healthy order book. But conservative investors should carefully study customer concentration, working capital pressure, cash flow, supplier dependence, pending machinery orders, promoter control and SME liquidity before applying.

Final IPORupee View

Merritronix Ltd IPO has positives such as pure fresh issue, strong revenue growth, strong PAT growth, improved margins, improved debt-equity ratio, specialised electronics manufacturing business and aerospace-defence exposure.

At the same time, investors should not ignore negative operating cash flow, high working capital requirement, customer concentration, supplier concentration, Telangana concentration, aerospace-defence concentration, leased related-party premises, machinery procurement risk, past compliance issues and SME liquidity risk.

Final View: This is a fundamentals-based SME electronics manufacturing IPO. Since the IPO is opening soon, investors should use this time to study the RHP, verify actual application amount, check business risks and decide based on risk appetite. Once the IPO opens, subscription trend should also be tracked before making the final decision.

Disclaimer

This article is for educational and informational purposes only. We are not SEBI registered investment advisors. This is not investment advice, recommendation, or a buy/sell call. IPO investments are subject to market risks, and SME IPOs may carry higher liquidity and volatility risk. Investors should read the RHP carefully and consult their financial advisor before making any investment decision.