Merritronix IPO
Merritronix LtdSME
This IPO has listed.
- Open date
- 1 Jun 2026
- Close date
- 3 Jun 2026
- Min. Investment
- ₹2,98,000
- Lot Size
- -
- Fresh Issue
- ₹70.03 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- -
Subscription rate
- Qualified Institutional Buyers224.91x
- Non-Institutional Investors352.98x
- Retail-Individual Investors297.67x
- Total293.31x
Schedule
- Completed: IPO open date1 Jun 2026
- Completed: IPO close date3 Jun 2026
- Completed: Allotment date4 Jun 2026
- Completed: Funds unblock or debit5 Jun 2026
- Completed: Tentative listing date8 Jun 2026
About
Promoter shareholding in Merritronix Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Dovari Yesudas | 19,73,025 | 15.43% | 19,73,025 | 11.28% |
| Dovari Amarnath | 34,71,450 | 27.15% | 34,71,450 | 19.85% |
| Vanaja D | 26,13,525 | 20.44% | 26,13,525 | 14.95% |
| Darsy Kethan Chandra | 14,15,700 | 11.07% | 14,15,700 | 8.10% |
| Dovari Thaman | 14,15,700 | 11.07% | 14,15,700 | 8.10% |
Merritronix IPO Strengths & Risks
- Experienced Promoters having deep domain knowledge to scale up the business.
- In house manufacturing capabilities.
- Management team with an established track record.
- Established track record of successfully completed orders.
- Efficient operational team.
- Risks Relating to the Business: The company business model as a B2B Electronics Systems Design and Manufacturing services ("ESDM") provider with limited brand recognition may restrict its pricing power, customer diversification and growth prospects.
- Risks Relating to the Business: The company may not qualify for or win bids to further expand its business in future, which may has an adverse effect on the company business, financial condition, results of operations and prospects
- Risks Relating to the Business: The company typically does not obtain long-term commitments from its customers and they may cancel or change their production requirements. Such cancellations or changes may adversely affect the company financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.
- Risks Relating to the Business: Increases in the prices of raw materials required for the company operations could adversely affect its business and results of operations
- Risks Relating to the Business: The company Order Book may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.
- Risks Relating to the Business: The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or is unable to borrow to meet its working capital requirements, it may materially and adversely affect the company business, cash flows and results of operations.
- Risks Relating to the Business: An inability to comply with repayment and other covenants in the financing agreements or otherwise meet its debt servicing obligations could adversely affect the company business, financial condition, cash flows and credit rating.
- Risks Relating to the Business: The majority of the company product sales and services is concentrated in the region of Telangana. For the Fiscal 2026, 2025and 2024 its revenue from sale of products and services in Telangana accounted for 98.19%, 95.63% and 88.85% of the company revenue from operations, respectively any adverse developments affecting its sales in these regions could has an adverse impact on the company business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The Company has not adequately complied with some of the provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for noncompliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- Risks Relating to the Business: The company has been unable to locate certain of its historical corporate records. The Company was incorporated in 1988 and certain corporate records and documents filed by its with the RoC are not traceable.
- Risks Relating to the Business: In the past Directors of the company namely Dovari Yesudas, Dovari Amarnath, Sridevi Madati, Maj Ravi Bandreddi and Ramalakshmana Rao Pavuluri has been directors of the companies which were struck off either by ROC or through Voluntary Strike-off .
- Risks Relating to the Business: The company derives a significant portion of its revenues from a limited number of clients. The loss of any significant clients may has an adverse effect on the company business, financial condition, results of operations, and prospect.
- Risks Relating to the Business: Information relating to capacity utilization of the company manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates. Under-utilization of capacity of its manufacturing facilities and an inability to effectively utilize the company manufacturing facilities may has an adverse effect on the company business and future financial performance.
- Risks Relating to the Business: The Company has experienced negative cash flow in prior periods and net decrease in cash and cash equivalents which may continue to does so in the future, which could has a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company Registered Office and Manufacturing facility from where its operates is not owned by the company.
- Risks Relating to the Business: The Company derives significant portion of the revenue from Turnkey Manufacturing/build-to-print activity as accounted for 92.07%, 82.64% and 80.72% of the revenue from operations in 2026, 2025 and 2024 respectively. An inability to anticipate and adapt to evolving customer preferences and demand for particular project, or ensure project quality may adversely impact the company business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: The company derived significant portion of the revenue from certain non-government sectors activity as accounted for 92.98%, 91.27% and 92.53% of the revenue from operations in 2026, 2025 and 2024 respectively, and any adverse developments in these sectors may materially and adversely affect the business, financial condition, results of operations and cash flows of the company.
- Risks Relating to the Business: The company derived significant portion of the revenue from Aerospace & Defence industry as accounted for 97.81%, 88.50% and 80.26% of the revenue from operations in 2026, 2025 and 2024 respectively, and any adverse developments in this industry may materially and adversely affect its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company depends on a limited number of suppliers for raw materials. Any interruption in the availability of raw materials could adversely impact its operations. Further, any failures by the company suppliers to provide raw materials to its on time or at all, or as per the company specifications and quality standards could has an adverse impact on its ability to meet the company manufacturing and delivery schedules.
- Risks Relating to the Business: The company Group Companies has incurred losses in the past and may incur losses in the future.
- Risks Relating to the Business: The company is completely reliant on third-party logistics service providers for transport of input materials and finished products.
- Risks Relating to the Business: The Company, its Directors and the company Promoter are party to certain legal proceedings. Any adverse decision in such proceedings may has a material adverse effect on the company business, results of operations and financial condition.
- Risks Relating to the Business: The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operates its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operations.
- Risks Relating to the Business: The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.
- Risks Relating to the Business: The company Promoters is involved in a venture which is in the similar line of business/unit as that of its Company.
- Risks Relating to the Business: The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain secured borrowings availed by its Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.
- Risks Relating to the Business: The Objects of the Issue for which funds is being raised, is based on the company management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- Risks Relating to the Business: Increasing competition in the electronics system design and manufacturing industry may create pressures of pricing and market share that may adversely affect the company business, prospects, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The Company is yet to place orders for the plant and machinery. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commissioning the manufacturing unit.
- Risks Relating to the Business: The company appoint contract labours for carrying out certain operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers is hired default on their obligations, and such obligations could has an adverse effect on the company results of operations and financial condition
- Risks Relating to the Business: The company contingent liabilities as stated in its Restated Financial Statements could adversely affect the company financial condition.
- Risks Relating to the Business: The company has, in the past, entered into certain transactions with related parties and may continue to does so in the future, which may potentially involve conflict of interest with equity shareholders. Any related party transactions that is not on an arm's length basis may adversely affect its business, results of operation and financial condition.
- Risks Relating to the Business: Changes in technology may affect the company business by making its manufacturing facilities or equipment less competitive.
- Risks Relating to the Business: Any non-compliance or delays in GST Return Filings, EPF and ESIC Payments may expose its to penalties from the regulators.
- Risks Relating to the Business: The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of the company shareholders.
- Risks Relating to the Business: The company individual Promoters play a key role in its operations and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoter and Executive Directors remain associated with the company. Its success also depends upon the services of the company key managerial personnel and its ability to attract and retain key managerial personnel and the company inability to attract them may affect its operations.
- Risks Relating to the Business: In addition to normal remuneration, other benefits and reimbursement of expenses some of the company Directors (Promoters) are interested in its Company to the extent of their shareholding and dividend entitlement and rent received from the Company.
- Risks Relating to the Business: The company is subject to impact of foreign exchange fluctuation. Any significant movement in foreign exchange rates, could adversely impact its revenue from exports and costs of sourcing raw materials through imports, which in turn could adversely impact the company operations.
- Risks Relating to the Business: The average cost of acquisition of Equity Shares by the company Promoters is lower than the Issue Price.
- Risks Relating to the Business: The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.
- Risks Relating to the Business: None of the Executive Directors of the Company has experience of being a director of a public listed company.
- Risks Relating to the Business: Any failures in the company quality control processes may damage its reputation, and adversely affect the company business, cash flows, results of operations and financial condition. Its may faces reputational harm or proceedings if the quality of the company products and services does not meet its customers' expectations.
- Risks Relating to the Business: The requirements of being a public listed company may strain its resources and impose additional requirements.
- Risks Relating to the Business: The company inability to effectively implement its business and growth strategy may has an adverse effect on its operation and growth.
- Risks Relating to the Business: Certain sections of this Red Herring Prospectus disclose information from the Mordor Intelligence Report which has been commissioned and paid for by its exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- Risks Relating to the Business: Any future issuance of Equity Shares or convertible securities, including options under any stock option plan or other equity linked securities may dilute your shareholding, and significant sales of Equity Shares by the company major shareholders, may adversely affect the trading price of its Equity Shares.
- Risks Relating to the Business: Impairment of Goodwill May Adversely Affect the company Financial Condition and Results of Operations
- Risks Relating to the Business: The company ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company financing arrangements.
- Risks Relating to the Business: The company insurance coverage may not be adequate to protect its against all potential losses to which the company may be subject and this may has a material effect on its business and financial condition.
- Risks Relating to the Business: Failures or disruption of the company Information and Technology ("IT") and/ or enterprise resources planning systems may adversely affect its business, financial condition, results of operations and future prospects.
- Risks Relating to the Business: After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
- Risks Relating to the Business: The Issue price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company Equity Shares may decline below the issue price and you may not be able to Sell your Equity Shares at or above the Issue Price.
- Risks Relating to the Business: QIBs and Non-Institutional Investors is not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Individual Investors is not permitted to withdraw their Bids after Bid/Offer Closing Date
- Risks Relating to the Business: Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Risks Relating to the Business: Delay in raising funds from the IPO could adversely impact the implementation schedule.
- Risks Relating to the Business: Pursuant to Section 27 of the Companies Act 2013, any variation in the objects would requires a special resolution of the Shareholders and the company Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of its Company who does not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.
- Risks Relating to the Business: You may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
