Merritronix Ltd IPO
Electronics
Price Band
₹141 – ₹149
Lot Size
1000
Minimum Bid Quantity
2000
Minimum Investment
₹298000
Issue Size
₹70.03Cr
Opens
2026-06-01
Closes
2026-06-03
Listing
08-06-2026
Subscription Status
Qualified Institutional Buyers
221.4 x
Non-Institutional Investor
351.89 x
Retail Individual Investor
289.49 x
Total
288.28 x
IPO Details
Issue Type
FP
Face Value
₹10
Tick Size
1
ISIN
INE1RQS01010
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Merritronix is an Electronics Systems Design and Manufacturing (ESDM) company engaged in manufacturing high-reliability electronic assemblies and systems for sectors such as defence, aerospace, telecommunications, and industrial electronics. The company provides business-to-business (B2B) electronic manufacturing services, including component sourcing, printed circuit board (PCB) assembly, system integration, testing, box-build solutions, and delivery of finished electronic products. Its operations also include turnkey manufacturing, job work, obsolescence management for legacy electronic systems, and trading of electronic and electromechanical components. Merritronix uses Surface-Mount Technology (SMT) and Through-Hole Technology (THT) assembly processes and also undertakes box-build and system integration activities. As of March 31, 2026, the company had an installed manufacturing capacity of 1,785,000 production units per annum. Its registered office and manufacturing facility are located in Hyderabad, Telangana.
Pros
- • The company operates in the niche segment of high-reliability and mission-critical electronics manufacturing for defence and aerospace applications. Defence and aerospace applications contributed 97.81% of its revenue from operations in FY26, and the company claims to operate in a segment that requires specialised certifications, process qualifications, and long programme execution cycles, which may create entry barriers for new players.
- • Merritronix claims to have experience in manufacturing electronic assemblies for missile systems, airborne radar systems, and digital video recording systems used in defence aircraft platforms. These projects reportedly involve advanced assembly capabilities such as Ball Grid Array (BGA) and micro-BGA component placement, along with X-ray inspection validation processes.
- • The company claims to have capabilities in obsolescence management for legacy defence and aerospace electronic systems. Its services include reverse engineering, development of Form-Fit-Function (FFF) replacements, alternate component qualification, and system redesign to help extend the operational life of older electronic platforms.
Cons
- • A significant portion of Merritronix’s revenue is concentrated in Telangana. Revenue from Telangana stood at Rs 153.07 crore (98.19%) in FY26, Rs 108.61 crore (95.63%) in FY25, and Rs 76.14 crore (88.85%) in FY24. Any adverse social, political, economic, or regulatory developments in Telangana could negatively impact the company’s business operations, financial condition, and cash flows.
- • Merritronix derives a significant portion of its revenue from a limited number of customers. The top 10 customers contributed Rs 139.31 crore (89.36%) in FY26, Rs 108.13 crore (95.22%) in FY25, and Rs 79.08 crore (92.28%) in FY24 to revenue from operations. Any loss of key customers, reduction in order volumes, or inability to maintain long-term customer relationships could adversely affect the company’s business and financial performance.
- • The company reported negative cash flows from operating activities amounting to Rs 23.38 crore in FY26 and Rs 6.64 crore in FY25, compared to a positive operating cash flow of Rs 4.53 crore in FY24. The negative operating cash flows were mainly attributed to higher working capital requirements, inventory build-up, increased trade receivables, and delayed cash realisation in turnkey defence electronics projects. If the company continues to experience negative cash flows or delays in converting revenue into cash inflows, it could adversely impact its liquidity, operations, and financial condition.
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