Monday was no less than a festival in the stock market for those investors who had invested money in the IPO of defense and aerospace sector company ‘Merritronix’. This company has almost doubled the amount of its investors as soon as it set foot on Dalal Street. The share allotted at the price of Rs 149 was directly listed on the BSE SME platform at Rs 283. That means whoever bet on the IPO of this company got a bumper profit of 90 percent on the very first day.
Earning of Rs 1 lakh 34 thousand in one go
This strong entry of Meritronics in the market was exactly as per the expectations. For retail investors, one lot of this IPO was fixed at 1,000 shares. This simply means that a common investor had to invest at least Rs 1 lakh 49 thousand in this issue. As soon as the share was listed at Rs 283 on Monday, investors got a direct profit of Rs 134 per share. The initial investment cost of Rs 1.49 lakh increased to Rs 2 lakh 83 thousand at the time of listing.
Investors opened the safe and invested money
The main reason behind this great start in the market was the unprecedented support received by the company. When this issue of Rs 70 crore opened between June 1 and June 3, it received record bids. Overall this IPO was subscribed more than 315 times.
In this, the share of retail investors was filled about 297.67 times, while non-institutional investors (NIIs) made strong bids of 476.59 times. The quota of qualified institutional buyers (QIB) was also filled up to 224.91 times. Even before the opening of the IPO, the company had raised approximately Rs 19.9 crore through anchor investors. A total of 47 lakh new shares have been issued in this issue. According to the management, this capital raised will be used to increase production capacity, reduce the company’s debts and meet daily business expenses.
Company’s business running at rocket speed
Meritronics mainly works in electronics system design as well as manufacturing important equipment for defense, aerospace and industrial sectors. The way the government is promoting domestic manufacturing, its direct benefits are visible in the books of companies.
The financial health of the company tells the story of its strong future. If we look at the figures for the financial year 2026 (FY26), the company’s income has jumped by 37 percent to Rs 156.3 crore. At the same time, the net profit has jumped by 86 percent to Rs 16.1 crore. EBITDA of Rs 15.2 crore a year ago has also increased to Rs 27.2 crore.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
