Bulls Eye Knowledge System Ltd. IPO

Merritronix

• Merritronix is coming out with an initial public offering (IPO) of 47,00,000 shares in a price band of Rs 141-149 per equity share.
• The issue will open on June 1, 2026 and will close on June 3, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 14.10 times of its face value on the lower side and 14.90 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance officer for the issue is Mandava Swathi.

Profile of the company

The company is an Electronics Systems Design and Manufacturing services (ESDM) company specializing in high-reliability, mission critical electronic assemblies and systems for defence, aerospace, telecommunications, Rapid Prototyping for design houses OEMs, Engineering services Companies and specialized industrial electronics. The company is primarily engaged in business-to-business (B2B) electronic manufacturing services, encompassing component sourcing, printed circuit board ('PCB') assembly, system integration, testing, box-build solutions and delivery of finished electronic products - executed to the quality standards required by India's strategic defence and aerospace programmes.

This integrated manufacturing and design support capability enables to serve industries that require reliable and performance oriented electronic systems. A key part of its manufacturing process is Surface-Mount Technology (SMT), which involves assembling electronic components directly onto the surface of printed circuit boards (PCBs) using automated placement systems and controlled reflow processes. Its SMT capabilities include the assembly of advanced packaging technologies such as Ball Grid Array (BGA) and micro-BGA components, commonly used in high-performance and miniaturized electronic systems.

Its SMT capabilities support the use of advanced and miniaturized components required in defence, aerospace and industrial electronic systems. The largely automated nature of the SMT process - including solder paste printing, automated component placement and controlled reflow soldering - enables consistent quality and precision. It also undertakes box-build and system integration activities, comprising assembly and integration of electronic modules and subsystems into fully functional end products. It also manages mechanical enclosure fabrication and related processes, where required, through third-party vendors as part of the overall system integration process, thereby enabling customers to engage through a single, coordinated interface.

Proceed is being used for:

• Capital expenditure towards purchase of machinery and equipment
• Funding working capital requirements
• Repayment/ prepayment, in full or part, of all or certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

The Electronics System Design & Manufacturing (ESDM) industry includes electronic hardware products and components relating to information technology (IT), office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano-electronics and medical electronics. The industry also includes design-related activities such as product designing, chip designing, Very Large-Scale Integration (VLSI), board designing and embedded systems. The India electronics manufacturing services market was valued at Rs 238,121.3 crores in 2024 and is expected to reach Rs 11,52,296.6 crores in 2030, registering a CAGR of 31.22% for the forecast period.

India’s Electronics Manufacturing Services (EMS) industry is poised to benefit from the continued expansion of domestic electronics production, supported by strong policy backing, rising localization initiatives, and increasing participation of global original equipment manufacturers (OEMs). Government programs aimed at strengthening the ESDM ecosystem, coupled with incentives for local value addition, are expected to enhance domestic capacity and reduce import dependence. As production volumes scale and supply chains deepen within India, EMS providers are likely to witness sustained growth in outsourcing demand and long-term revenue visibility.

The Indian EMS industry has witnessed significant momentum driven by recent policy reforms and incentive programs introduced by the Government of India. Initiatives such as the Production Linked Incentive (PLI) scheme, Design Linked Incentive (DLI), and the India Semiconductor Mission have accelerated investments across the electronics value chain. These measures have enhanced domestic manufacturing competitiveness, encouraged capacity expansion, and improved India’s positioning in the global electronics supply chain.

Pros and strengths

Three decades of operating Legacy in mission-critical defence and aerospace electronics: It operates in a niche segment of electronics manufacturing focused on low-volume, high-complexity and high-reliability applications catering primarily to the defence, aerospace, electrical engineering, power & utilities, and industrial sectors. Unlike mass-production EMS companies, its business model emphasizes precision engineering, customization and stringent quality compliance, which creates relatively higher entry barriers within this segment. It has positioned itself as a reliable provider of high-reliability and high-complexity electronic solutions by integrating sourcing, assembly, testing, and quality control within a unified execution framework. This integrated approach supports enhanced component traceability and process controls, which are an essential requirement for defence and aerospace applications. Defence and aerospace applications accounted for 97.81% of its revenue from operations in Fiscal, 2026, reflecting its deep integration into India's strategic electronics manufacturing ecosystem.

Modern SMT infrastructure and IPC-A-610 Class 3 assembly capability: Its manufacturing capabilities include SMT and through-hole assembly, high-density interconnect boards, BGA and micro-BGA components, conformal coating, potting, and box builds with system integration. It adheres to IPC-A-610 Class 3 standards, typically required for aerospace and defence electronics, and focus on maintaining strong process controls, high first-pass yields and low field failure rates, demonstrating its emphasis on quality and process discipline. Its manufacturing facility operates Panasonic NPM D3A and Juki 2060 high-speed SMT lines, supported by Maker-Ray 3D Automated Optical Inspection (AOI) and X-ray inspection systems. Its assembly capabilities encompass high-density interconnect PCBs, Ball Grid Array (BGA) and micro-BGA components, conformal coating, potting, through-hole assembly and box-build integration. All assembly operations are performed to IPC-A-610 Class 3 acceptability standards.

Strong order book providing revenue visibility: It maintains a healthy and diversified order book from customers across defence, aerospace, industrial and allied sectors, which provides revenue visibility over the near to medium term. Its order backlog reflects sustained customer confidence in its technical capabilities, quality standards and execution reliability in handling high-reliability electronic assemblies. Given the mission-critical nature of its programs, particularly in defence and aerospace applications, its projects typically involve multi-stage development, qualification and production cycles. This results in longer engagement tenures and improves revenue visibility. The visibility afforded by its order pipeline enables to undertake effective capacity planning, optimize procurement strategies and manage working capital efficiently. Defence and aerospace programmes typically involve multi-stage development, qualification and production cycles, resulting in engagement tenures of two to five years per programme which supports predictable revenue visibility over the near to medium term. Its repeat customer rate of 86.08% for the period ended March 31, 2026 reflects the stickiness of defence and aerospace customer relationships, where switching costs are high and supplier qualification is a lengthy process.

Risks and concerns

Business highly dependent on Telangana for revenue generation: The majority of its product sales and services is concentrated in the region of Telangana. For the Fiscal 2026, 2025 and 2024 its revenue from sale of products and services in Telangana accounted for 98.19%, 95.63% and 88.85% of its revenue from operations, respectively any adverse developments affecting its sales in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows. Due to the geographic concentration of the sale of its products and services in Telangana state, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances.

Heavy reliance on limited customer base: The company derives a significant portion of its revenues from a limited number of clients. For Fiscal 2026, 2025 and 2024, revenue from its top 10 customers accounted for 89.36%, 95.22% and 92.28% of its revenue from operations, respectively, indicating a significant dependence on a limited customer base. Its business heavily relies on its customer base, and the potential loss of any of its customers could have a negative impact on its sales and, consequently, its overall business and financial performance. If it is to lose one or more of its significant or key customers or experience a reduction in the volume of business they provide, it could result in adverse consequences for its business, financial health, and cash flow.

Dependence on Aerospace & Defence industry: The business operations are significantly dependent on revenue derived from Aerospace & Defence industry in which the customers operate. 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. Further, Aerospace & Defence industry-specific risks may lead to delays, modifications or cancellations of existing orders and contracts, as well as reduced opportunities for securing new business. In addition, its ability to diversify into other industries may be limited due to factors such as lack of domain expertise, customer relationships, or increased competition.

Outlook

Merritronix is engaged in the business of manufacturing and assembly of electronic components, including engineering design and development services. Its specific focus is in turnkey electronics manufacturing and obsolescence engineering management. Its offerings primarily cater to customers in the defence, aerospace, industrial electronics, and scientific research sectors. Its business is driven by a combination of product supply and project-based engineering services and support, enabling to serve complex and high-reliability applications. On the concern side, its business model as a B2B Electronics Systems Design and Manufacturing services provider with limited brand recognition may restrict its pricing power, customer diversification and growth prospects. Further, it 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 its financial condition, cash flows and results of operations.

The company is coming out with a maiden IPO of 47,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 141-149 per equity share. The aggregate size of the offer is around Rs 66.27 crore to Rs 70.03 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2026 was Rs 15,589.56 lakh against Rs 11,356.38 lakh for Fiscal year 2025. An increase of 37.28% in revenue from operations. Profit after tax for the Fiscal 2026 were at Rs 1,610.30 lakh against profit after tax of Rs 865.95 lakh in fiscal 2025, an Increase of 85.96%.

Meanwhile, it aims to enhance its manufacturing capacity and operational efficiency through targeted investments in machinery, automation, and process improvements to optimize labour and material utilization, thereby improving project execution timelines. The company focuses through efficient operational practices, strengthened procurement planning and inventory management frameworks. Its operations are supported by an experienced team of engineers, procurement professionals, and senior management who operate in accordance with established industry practices. Additionally, its in-house technological capabilities enable effective operational management, robust process controls, and customer responsiveness. By enhancing process efficiency, reducing turnaround times, and ensuring compliance with international quality standards, it aims to strengthen its position in the high-reliability electronics manufacturing segment.

Pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), Univa Foods has informed that the Board of Directors of the Company, at its meeting held today, Tuesday, 26th May, 2026, has considered and approved the following matters: 1. Audited Standalone Financial Results: The Audited Standalone Financial Results for quarter and financial year ended 31st March, 2026. The Statutory Auditors of the Company, B. M. Gattani & Co., Chartered Accountants, have issued an Audit Report with an unmodified opinion on the Audited Standalone Financial Results of the Company for the financial year ended 31st March, 2026. The declaration pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is enclosed. In this regard, it has enclosed the following: • Audited Standalone Financial Results for the quarter and financial year ended 31st March, 2026; • Auditor’s Report issued by the Statutory Auditors of the Company; The aforesaid documents, including declaration pursuant to Regulation 33(3)(d), are enclosed as Annexure – I. 2. Appointment of Internal Auditor of the Company for the financial year 2025-26 and 2026-27: Based on the recommendation of the Audit Committee, the Board of Directors has approved the appointment of Akash Prajapati and Company, Chartered Accountants as the Internal Auditors of the Company for the financial years 2025-26 and 2026-27 to conduct the internal audit of the Company for the aforesaid financial years. The details as required under Regulation 30 of the Listing Regulations read with Part A of Schedule III and SEBI Master Circular dated 30th January, 2026 are enclosed as Annexure – II. The Board Meeting commenced at 05.30 pm and concluded at 06.00 pm.

The above information is a part of company’s filings submitted to BSE.