Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on September 25, 2025
- The company is engaged in trading of electronics and other products as well as providing services in relation to IT, EPC, Up-gradation projects etc.
• The company has posted improved performances for the reported periods.
• It is operating in a highly competitive and fragmented segment.
• The RI is at a discount of around 79.70%, making it a lucrative offer.
• Well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Mehai Technology Ltd. (MTL) is engaged in the business of trading of electronic and other products and engaged in providing various services in relation to IT, EPC, development, modernization, and upgradation projects.
The Company is engaged in the business of trading through two primary channels, wholesale and retail. In its retail segment, it sells a range of electronic products, including mobile phones, mobile accessories, and audio accessories, directly to end consumers through three physical stores located in West Bengal and one in Bihar. In its wholesale segment, the Company supplies electronic and other items such as mobile phones, accessories etc., and PET preforms in bulk under a B2B model.
In addition to trading operations, the Company is engaged in providing software maintenance and other IT services, such as PAN validation and SMS analysis etc. It also provides EPC services for solar street light systems, covering the complete scope of design, supply, installation, testing, commissioning, and maintenance. Further, the company undertakes development, modernization, and upgradation projects in the field of electrical infrastructure, including planning, designing, construction, and commissioning activities. MTL is also engaged in the sinking and continuation work of deep tube wells and undertakes other construction-related projects, such as the renovation of existing premises.
As of the date of this LOF, the Company has two subsidiaries, namely: (i) KBS Corporates Private Limited, which is engaged in the trading of medicines in both retail and wholesale segments; and (ii) Mehai Aqua Private Limited, which is engaged in the manufacturing of Packaged Drinking Water for supplying to Indian Railway Catering and Tourism Corporation (IRCTC). The offer document is silent on its employees’ strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 370530000 equity shares of Re. 1 each at a fixed price of Rs. 2 per share to mobilize Rs. 74.11 cr. The RI opens for subscription on September 26, 2025, and will close on October 17, 2025. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of September 18, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 14.75 cr. for working capital, Rs. 33.00 cr. for repayment/prepayment of certain borrowings, and Rs. 9.11 cr. for lending fresh loans to Mehai Aqua Pvt. Ltd., and Rs. 16.50 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Integrated Registry Management Services Pvt. Ltd. is the registrar to the issue, while Bigshare Services Pvt. Ltd. is the registrar to the company.
Post-RI, company’s current paid-up equity capital of Rs. 37.05 cr. will stand enhanced to Rs. 74.11 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 148.21 cr.
As of the date of this Letter of Offer, there are 23,44,00,000 outstanding equity share warrants having face value of ₹1 each are convertible at a later date into 23,44,00,000 Equity Shares of our Company having face value of ₹1 each. Upon such conversion, company’s equity capital will stand enhanced to that extent.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last four fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 14.91 cr. / Rs. 0.58 cr. (FY24), and Rs. 119.46 cr. / Rs. 10.45 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, (on unaudited basis) it marked net profit of Rs. 1.53 cr. on a total income of Rs. 18.33. Its NAV stood at Rs. 2.83 as of June 30, 2025.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 540730 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 15.10 on September 17, 2025, and opened on an ex-right basis at Rs. 8.13 on September 18, 2025. Since then, it has marked a high/low of Rs. 9.85 / Rs. 7.73. The scrip last closed at Rs. 9.85 as of September 25, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 19.25 / Rs. 4.94. The counter is currently under ASM LT: Stage 1.
The promoters’ holding has declined to 54.21% for the quarter ended with June 30, 2025, against 55.79% as of December 31, 2024. RI is at a discount of around 79.70% based on its last traded price of Rs. 9.85 as of September 25, 2025. The counter is well managed above the RI price to tempt investors.
Conclusion / Investment Strategy
MTL is engaged in trading of electronics and other products as well as providing services in relation to IT, EPC, Up-gradation projects etc. The company has posted improved performances for the reported periods. It is operating in a highly competitive and fragmented segment. The RI is at a discount of around 79.70%, making it a lucrative offer. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on September 25, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
