Shares of Merritronix are headed for a potentially strong stock market debut on Monday, with the grey market premium (GMP) indicating gains of about 43% over the issue price. According to market watchers, the company's shares are commanding a GMP of around Rs 64, implying a likely listing price of about Rs 213 against the IPO issue price of Rs 149 per share.
The company is scheduled to list on the BSE SME platform on June 8, following a highly successful public issue that attracted robust demand across investor categories.
The Rs 70 crore IPO was open for subscription between June 1 and June 3. The issue comprised an entirely fresh issue of 47 lakh shares, with the company raising capital primarily for capacity expansion, working capital requirements and debt repayment.
Investor response was exceptionally strong. The IPO was subscribed 315.36 times overall, with the non-institutional investor category leading the demand at 476.59 times, while the retail portion was subscribed 297.67 times and the qualified institutional buyer segment attracted bids worth 224.91 times the shares on offer.
Ahead of the public issue, the company had raised nearly Rs 19.9 crore from anchor investors.
Merritronix operates in the electronics systems design and manufacturing (ESDM) segment, focusing on high-reliability and mission-critical electronic products used across defence, aerospace and industrial applications.
The company provides integrated manufacturing and design support services and largely caters to business-to-business customers. Its presence in defence and aerospace electronics has attracted investor attention amid growing policy support for domestic manufacturing and indigenisation of critical electronic systems.
Financial performance has also supported investor interest. For FY26, the company reported a 37% rise in revenue to Rs 156.3 crore, while profit after tax jumped 86% to Rs 16.1 crore. EBITDA increased to Rs 27.2 crore from Rs 15.2 crore a year earlier.
Strong subscription numbers, healthy financial growth and favourable sentiment towards defence-linked manufacturing companies have contributed to the robust grey market premium. However, investors will closely watch whether the GMP translates into actual listing gains, as SME stocks can often witness sharp movements after listing.
