Mehul Telecom Ltd. IPO

Mehul Telecom 

• Mehul Telecom is coming out with an initial public offering (IPO) of 28,29,600 shares in a price band of Rs 96-98 per equity share. 
• The issue will open on April 17, 2026 and will close on April 21, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.60 times of its face value on the lower side and 9.80 times on the higher side.
• Book running lead manager to the issue is Cumulative Capital.
• Compliance Officer for the issue is Richie Dhrumil Vandra.

Profile of the company

Mehul Telecom is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a hybrid ‘COCO’ (Company Owned, Company Operated) and ‘FOFO’ (Franchisee Owned, Franchisee Operated) retail model. Its retail portfolio comprises products from leading smart phone and phone accessory manufacturers viz., MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular Brands. 

In addition to handsets, it retails connected lifestyle products and peripherals such as Air Conditioners, Refrigerators, Washing Machines, Televisions, wearables, audio devices, and power solutions like speakers, smartwatch, ear phones, head phones, tablets, mobile covers, phone chargers, screen guards, power banks, phone warranty plans, fire sticks, car holder clamps, pen drive etc. of various brands. Its stores support omnichannel checkout including UPI, mobile wallets, and integrated POS terminals. It operates under the brand name ‘Mehul Telecom’. It operates from total 80 stores across the state of Gujarat out of which 6 are COCO stores and 74 are FOFO stores. 

It focuses on offering products that meet the requirements of its customers by balancing quality and affordability, including offering flexible finance options. Drawing on the expertise of its promoters, a diverse product portfolio, its wide distribution network and focus on customer service as well as the increasing demand for smartphones and related products, it proposes to enhance its presence across Gujarat.

Proceed is being used for:

• Funding of working capital needs 
• General corporate purposes
• Issue related expenses 

Industry Overview

Electronics industry is the world’s largest and fastest growing industry and is increasingly finding application in all sectors of the economy. The government’s support for the electronics industry has been strong, with numerous conducive policies. The government of India is focusing on manufacturing electronics hardware within India, which seems to be the conceptual origin for both the Make in India and the Digital India programmes. These initiatives encourage domestic manufacturing and exports across the electronics system design and manufacturing (ESDM) value chain. India’s production of electronics is estimated at $90 billion and export is estimated to be $23 billion. Apart from policies like the Make in India initiative, the National Policy on Electronics (NPE) 2019 and Digital India, the Indian government has also backed the sector with the Electronics Development Fund (EDF), the Modified Special Incentive Package Scheme (MSIPS), the Phased Manufacturing Programme (PMP), Preferential Market Access (PMA), and by rationalising the duty structure. 

India has emerged as the second largest manufacturer of mobile phones in the world. Over 200 units are manufacturing cellular mobile phones and parts / components thereof in the country, up from only 2 units in 2014. The domestic demand is almost completely being met out of domestic production. India which was importing 90 per cent of its mobile phones till 2014 is now catering to 97 per cent of all mobile phones that are consumed in India. The electronics sector of India contributes around 3.4% of the country’s Gross Domestic Product (GDP). The government has committed nearly $17 billion over the next six years across various incentive schemes to grow the industry. The Government of India has also worked on making the county investor-friendly and has been laying out the red carpet for manufacturing companies.

India has a very strong manufacturing base for electronics components. Electronic components are considered to be the building blocks for this sector. A proper and impeccable structure of manufacturing electronic components requires a supportive ecosystem and a high capital investment. India produces high quality electronic components mainly electro- mechanical components (like printed circuit boards, connectors, etc.) and passive components (like wound components, resistors, etc.). Over the years, the active components (like integrated circuits, diodes, etc.) and the associated components (like optical disc, magnets, RF Tuners, etc.) have also witnessed its growth. India is a global R&D hub and the third largest start-up ecosystem in the world. India is home to over 1140 R&D Centres of Global MNCs employing 900,000 plus professionals. India is the preferred investment destination for electronics manufacturing given the low cost of manufacturing combined with the rapid transformation in ease of doing business. 100% FDI is allowed under the automatic route. Under Defence electronics, FDI up to 49% is allowed under automatic route and beyond 49% through government approval.

Pros and strengths

Extensive distribution network in Gujarat: Its retail footprint spans 80 locations across key districts in Gujarat, specializing in the sale of mobile handsets and accessories. This network comprises 6 COCO stores (Company and Company Operated Stores) and 74 FOFO stores (Franchise Owned and Franchise Operated Stores), spanning 15 districts. Its extensive network enables it to achieve broad geographical reach and strong positioning within the state, ensuring coverage across diverse markets. 

Comprehensive product range: The company is a multi-brand retailer offering a wide selection of smartphones and accessories from leading manufacturers such as MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular Brands in Gujarat. With an extensive assortment comprising around 1100 SKUs for smartphones and 500 in other accessories, it is equipped to meet a wide spectrum of aesthetic and functional preferences of its customers. 

Low capital requirements for growth: One of its key strengths lies in its low capital requirements for expansion, allowing the company to achieve sustainable growth with minimal financial outlay. By leveraging a franchise model and efficiently managing inventory and logistics, it can expand its retail footprint without significant upfront investment. This capital-efficient approach not only accelerates its market penetration but also maximizes return on investment, enabling the company to focus resources on core areas such as product innovation, customer service and brand building.

Risks and concerns

Store network optimization and performance-based rationalization: Opening and closing of stores is a regular part of the company’s business and depends mainly on the revenue generating potential of each location. Store performance is influenced by factors such as location, customer footfall, product mix, and operating efficiency. High-revenue stores are retained to strengthen its retail network, while underperforming outlets are rationalized or closed. This approach, while optimizing operations, exposes it to risks of site selection errors, demand misjudgment, and closure-related costs. Although the company has pursued consistent growth by expanding into high-potential markets and targeting diverse customer segments, there can be no assurance that newly opened stores will achieve projected performance levels or that targeted markets will deliver the anticipated returns. Frequent store closures, though intended to improve efficiency, may result in increased costs and could adversely affect profitability.

Geographical concentration risk in Gujarat: Its operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. In the State of Gujarat also its business revenue is generated mainly from two districts viz., Rajkot and Morbi i.e., Rs 12517.01 lakh, Rs 8,766.57 lakh, Rs 1,620.29 lakh, Rs 8,193.94 lakh and Rs 6,149.58 lakh constituting 82.36% , 76.38%, 81.69%, 76.43% and 76.73% of the total revenue from operations for the financial year/period ended December 31, 2025, March 31, 2025, April 21, 2024, March 31, 2024, March 31, 2023, respectively. Any adverse development affecting its operations in this region or any saturation could have an adverse impact on its business, financial condition and results of operations.

Risk of limited product diversification in the mobile phone industry: Its business operations are exclusively focused on the diversification of telecom products mainly, mobile phones, accessories and other related gadgets, which exposes it to significant risks due to lack of diversification. It operates exclusively in the mobile phone industry which is characterized by rapid technological advancements, intense competition, and frequent product obsolescence, requiring it to adapt swiftly to changing trends and consumer preferences. Additionally, its operations are subject to regulatory requirements, taxation, and consumer protection laws, any changes to which could increase its operational costs. Market saturation, economic downturns, or reduced consumer spending further pose challenges, and its limited product portfolio amplifies these risks, as any adverse developments in the mobile and accessories market could materially impact its revenues, profitability, and overall business sustainability.

Outlook

Mehul Telecom is engaged in multi-brand retail selling of Smart Phones, Other Electronic Products and Allied accessories from manufacturers like MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular brands. It is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a hybrid ‘COCO’ (Company Owned, Company Operated) and ‘FOFO’ (Franchisee Owned, Franchisee Operated) retail model. On the concern side, competition from online retailers who can offer products at competitive prices and are also able to offer a wide range of products may adversely affect its business and its financial condition, results of operations and cash flows. Further, its operations are heavily reliant on the logistics and transportation systems of the manufacturers' distributors. Any delays, disruptions, or inefficiencies in the distributors' logistics operations could significantly impact the timely availability of products it sells and could have a material adverse effect on its business, financial condition and results of operations.

The company is coming out with a maiden IPO of 28,29,600 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 96-98 per equity share. The aggregate size of the offer is around Rs 27.16 crore to Rs 27.73 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 12,088.66 lakh whereas in FY24 it was Rs 10,719.83 lakh representing an increase of 12.77%. Moreover, profit after tax for the year ended March 31, 2025, stood at Rs 603.94 lakh and for the year ended March 31, 2024 it was Rs 219.46 lakh representing an increase of 175.19%.

The company is planning to establish additional 3 to 4 Company Owned Company Operated stores, capturing a larger share of the market. It aims to expand its footprint across Gujarat, specially focusing on those districts where store count is low and footfalls are high, while optimizing overhead costs, which will decrease proportionally over time. Also, it aims to expand operations to other high-potential Cities in tier II and tier III within Gujarat. Going forward, it intends to diversify its product portfolio by entering the consumer durables segment, with an initial focus on categories such as washing machines and air conditioners. This strategic expansion aims to leverage its existing brand equity, distribution network to address demand for consumer goods in India’s expanding middle-income segment. Further, it aims to strengthen brand loyalty and ensure a superior consumer experience. Its proactive approach to customer service, including regular follow-ups and feedback mechanisms, ensures that customer concerns are addressed promptly, reinforcing trust in its brand.

Kratikal Tech

• Kratikal Tech is coming out with an initial public offering (IPO) of 29,40,000 shares in a price band of Rs 128-135 per equity share.
• The issue will open on June 30, 2026 and will close on July 02, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 12.80 times of its face value on the lower side and 13.50 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance officer for the issue is Anmol Gupta.

Profile of the company

Kratikal Tech is engaged in providing AI-driven, Software-as-a-Service–based cybersecurity solutions through its proprietary security software platform, supported by cybersecurity and regulatory compliance services, enabling enterprises to achieve measurable cyber risk reduction and enhanced resilience. Its People Security Management (PSM) capabilities are delivered through the proprietary Threatcop platform, which focuses on reducing human-related cyber risks, and are enhanced by technology and process security offerings delivered under the Kratikal brand. Together, these offerings provide integrated protection across the People-Process-Technology stack, supporting organizations in proactively identifying, prioritizing, and mitigating cyber risks while strengthening their overall security posture in an increasingly threat environment.

Through its services, it empowers organizations to protect their critical data, prevent cyber threats, and ensure smooth business operations. Its solutions are designed to eliminate data privacy risks, safeguarding businesses from unauthorized access and security breaches. It operates through two integrated business lines: i) AI Driven People Security Management, offered through Threatcop product suite offered under Threatcop brand (Products); and ii) Technology and Process Security Services, offered under the Kratikal brand, encompassing Vulnerability Assessment and Penetration Testing (VAPT), application and infrastructure security, red-team exercises, and governance, risk and compliance (GRC) services, all supported by its AI-driven VMDR (Vulnerability Management, Detection & Response) platform and AutoSecT (Services). This integrated model enables it to address both human-layer risks and technology- and process-layer vulnerabilities within customer environments. 

In its services portfolio, it has developed Threatcop, a people security management suite and AutoSecT, an AI-driven pentest and VMDR platform. AutoSecT autonomously scans network, cloud, web, mobile, and API assets, prioritizes vulnerabilities based on risk, and provides AI-driven patch recommendations, supported by analytics dashboards for security teams and a dedicated CISO dashboard. The platform standardizes and enables the delivery of all penetration testing reports undertaken by it, enhancing scalability, consistency, and turnaround time, while embedding its intellectual property at the core of its service offerings. It has undertaken AI driven VMDR, secure code reviews, and vulnerability assessments across diverse customer environments. Its solutions are used by a broad base of small businesses and large enterprises across sectors such as banking, financial services and insurance (BFSI), fintech, telecom, IT/ITES, healthcare, pharmaceuticals, e-commerce, and manufacturing, both in India and international markets. Kratikal is a CERT-In Empanelled Security Auditor and is widely recognized for its VAPT, compliance, and virtual CISO (vCISO) services. Additionally, it is empanelled by NSE to perform system audits for trading members.

Proceed is being used for:

• Investment in Threatcop FZ LLC, UAE and Threatcop AI Inc, USA (its subsidiaries) for expenditure towards sales & marketing activities and development of workforce resources.
• Investment in product development 
• General corporate purposes 

Industry overview

The IT-BPM (Information Technology and Business Process Management) industry encompasses a broad spectrum of services, including software development, IT consulting, infrastructure management, and outsourced business processes such as finance, human resources, and customer support. This sector plays a pivotal role in India’s economic landscape, serving as a major driver of employment, innovation, and global trade. Positioned as a global leader in outsourcing and digital services, India has built a strong reputation for delivering high-quality, cost-effective IT and BPM solutions to clients across the world. The industry not only contributes significantly to foreign exchange earnings but also underpins India’s digital transformation journey, reinforcing its stature as a strategic hub for technology and business services on the global stage. 

The Indian IT-BPM sector has considerable impact on GDP and the employment rate of the country, where exports are a major contributor to the revenue from this sector. Strong supportive government policies are augmenting the consistent growth in this sector. The Software Technology Park (STP) scheme which is a 100% export-oriented scheme for development and export of computer software, including export of professional services using communication links or physical media, makes India attractive for multinational global participants to set up its presence providing employment opportunity. In addition to STP scheme, the government prioritizes cybersecurity, hyper-scale computing, Artificial Intelligence (AI) as a technology, and blockchain technology. The country, with lowest data costs at INR10/GB (USD 0.12/GB) is complimenting for a wide customer base to use this technology, which is a big advantage to train the AI for any application.

Looking further ahead, the industry is projected to generate $308.0 billion in FY 2027, $320.0 billion in FY 2028, $335.0 billion in FY 2029, and ultimately reach $350.0 billion by FY 2030. The progressive increments highlight the resilience and global competitiveness of India's IT-BPM sector. Contributing factors include the rise of Software as a Service (SaaS), global capability centres (GCCs), and government policies supporting digital public infrastructure and innovation. This consistent upward trajectory underlines the IT-BPM industry's critical role in India’s economic growth and its strategic importance in the global digital economy.

Complete people security management platform: It offers an integrated People Security Management suite through its Threatcop product stack, designed to strengthen organisational cyber resilience by addressing human-layer risks alongside technical controls. The platform includes: i) Threatcop Security Awareness Training (TSAT), a simulation-led platform for phishing and social engineering exercises along with targeted awareness content; ii) a cyber awareness Threatcop Learning Management System (TLMS); iii) Threatcop DMARC / email authentication and anti-spoofing (TDMARC); and iv) additional people-centric security capabilities such as Threatcop Phishing Incident Response (TPIR), incident readiness, and reporting modules-enabling organisations to assess, train, protect, and continuously improve user security behaviour across functions and locations.

Real-time DMARC with sender ID visibility: Its Real-Time DMARC platform provides real-time DMARC (Domain-based Message Authentication, Reporting and Conformance) enforcement with continuous monitoring of SPF/DKIM authentication outcomes and automated policy application to reduce domain spoofing and Business Email Compromise (BEC) risk. A key differentiator is Sender ID visibility, which highlights the actual sending identity behind each message (e.g., visible ‘From’ domain vs. underlying authenticated/return-path identity and sending infrastructure), helping organisations quickly detect look-alike senders, unauthorised third-party senders, and misaligned authentication. This improves security teams’ ability to triage incidents faster, validate legitimate marketing/transactional senders, and maintain stronger control over email channels across business units and vendors.

Comprehensive coverage across security domains: It offers a wide range of cybersecurity solutions covering multiple layers of an organisation’s digital infrastructure. Its service portfolio includes vulnerability assessment and penetration testing across networks, cloud environments, web and mobile applications and APIs, as well as cloud security posture reviews, configuration assessments and application-level security testing. In addition, it provides compliance audits, governance advisory and regulatory support aligned with applicable industry standards and statutory requirements. This comprehensive coverage enables it to serve customers with varied security maturity levels, operating environments and regulatory obligations. By addressing both technical vulnerabilities and governance-related gaps, it is able to deliver integrated security solutions rather than isolated point services. This breadth of capabilities also supports cross-selling and upselling of complementary services within existing customer relationships, enhances account depth, and reduces reliance on single-service engagements.

Risks and concerns

Dependence on human capital: It has 200 employees on payroll. Being a cyber-security company, a huge percentage of its revenue is diverted towards the employee benefit expenses. Its employees are key to its success in business operations. If it experiences a slowdown or stoppage of work for any client for which it has dedicated employees, it may not be able to efficiently reallocate these employees to other clients and projects to keep their utilization and productivity levels high. Its ability to execute projects and to obtain new clients depends largely on their ability to attract, train, motivate and retain highly skilled professionals. The performance of it will be benefited on the continued service of these persons or replacement of equally competent persons from the domestic markets. It may have difficulty in redeploying and retraining its professionals to keep pace with continuing changes in technology, evolving standards and changing customer.

Revenue dependence on key customers: Its top ten customers contribute 31.60%, 21.89% and 25.11% of its total revenue from operations for the financial year ended on March 31, 2026, 2025 and 2024, respectively. It is engaged in the business of risk-based vulnerability management and assessment solutions, cybersecurity quantification, cyber security, and services of penetration testing services. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations.

Geographical concentration risk: The company’s revenues are geographically concentrated, with the top six states Delhi, Haryana, Karnataka, Maharashtra, Tamil Nadu and Uttar Pradesh contributing majority of the total revenues during each of the periods. Its top six states contribute 63.07%, 78.71% and 78.89% of its total revenue for the financial year ended on March 31, 2026, 2025 and 2024, respectively. As a result, its business performance is dependent, to a considerable extent, on market conditions, customer demand, regulatory environment and economic activity in these regions. Accordingly, any adverse changes in market conditions, regulatory environment or economic activity in these States could have a material impact on the company’s business, results of operations and financial condition. 

Outlook

Kratikal Tech is engaged in providing AI-driven, Software-as-a-Service–based cybersecurity solutions through its proprietary security software platform, supported by cybersecurity and regulatory compliance services, enabling enterprises to achieve measurable cyber risk reduction and enhanced resilience. Its empanelment with the Indian Computer Emergency Response Team (CERT-In) represents a significant strength and provides a distinct competitive advantage, particularly in engagements with government bodies, public sector undertakings and large enterprises. This empanelment reflects its technical capabilities, process maturity and adherence to prescribed cybersecurity standards and guidelines. On the concern side, it does not successfully anticipate market needs or develop and introduce new solutions that meet users’ needs on a timely basis, it may not be able to compete effectively and its revenue, reputation, financial conditions, results of operations and cash flows may be adversely affected. Moreover, a significant portion of its revenues is generated during the last quarter of the financial year, and any delay or reduction in customer spending during this period may materially affect its annual financial performance.

The company is coming out with a maiden IPO of 29,40,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 128-135 per equity share. The aggregate size of the offer is around Rs 37.63 crore to Rs 39.69 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for FY25-26 was Rs 3,671.59 lakh as against Rs 2,085.09 lakh for FY24-25, an increase of 76.09%. Profit after tax for the FY25-26 was at Rs 614.25 lakh as against profit after tax of Rs 381.44 lakh in FY24-25, an increase of 61.03%.

It intends to pursue international expansion through a combination of organic initiatives and strategic arrangements, including tie-ups, acquisitions, strategic alliances, partnerships or joint ventures, where considered appropriate. In addition, it plans to strengthen its global market presence by investing in brand building, targeted advertising, marketing activities and development of workforce resources in key overseas geographies. These initiatives are aimed at expanding customer acquisition, deepening relationships with international clients and diversifying revenue streams, while leveraging its existing technical capabilities and delivery model. Going forward, it plans to strengthen its product development capabilities through ongoing investments in research and development, technology infrastructure and skilled human resources. This includes hiring and retaining experienced professionals across product engineering, cybersecurity research, artificial intelligence, cloud security and DevSecOps functions. In addition to organic investments, it may pursue selective acquisitions, strategic investments or licensing arrangements for technologies that complement and enhance its existing product portfolio.

Vinit Mobile 

• Vinit Mobile is coming out with an initial public offering (IPO) of 21,60,000 shares in a price band of Rs 150-158 per equity share. 
• The issue will open on June 30, 2026 and will close on July 2, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 15.00 times of its face value on the lower side and 15.80 times on the higher side.
• Book running lead manager to the issue is Comfort Securities.
• Compliance officer for the issue is Mansi Jain.

Profile of the company

Vinit Mobile deals in a wide range of mobile handsets of most of the major brands in India which includes Apple, One Plus, Motorola, Samsung, Vivo, Oppo, Realme and Xiaomi etc. Alongside smartphones, its stores also stock mobile related products such as tablets, data cards, and a variety of accessories like earphones, chargers, power banks, screen guards and mobile covers, all available under one roof across its retail outlets. The company follows a Company-Owned and Company-Operated (“COCO”) model, whereby its retail stores are owned and operated by the Company. Under this model, the company directly manages store operations, including recruitment and training of personnel, inventory planning and replenishment, pricing and promotional execution, and customer service procedures. The COCO model supports consistency in operating practices across its retail network.

The company has arrangements with various financial institutions, including Bajaj Finserv, HDB Financial Services, and TVS Credit, to facilitate point-of-sale financing and EMI options for customers at its stores, subject to eligibility and approval by such institutions. In addition, the company facilitates after-sales support for mobile phones and accessories through authorized service centers for warranty-related repairs or services. 

The company provides after-sales assistance to customers for mobile phones and accessories sold through its stores. Such assistance includes facilitating access to authorized service centers for maintenance, repair, or warranty-related services. All mobile phones and accessories are sold with standard manufacturer warranties. The Company coordinates with suppliers and service centers to address customer complaints relating to defective products, in accordance with applicable warranty terms. Moreover, the company provides free home delivery for selected purchases. the company also undertakes promotional schemes during festive periods, including discount and cashback-based offers, in accordance with applicable terms and conditions.

Proceed is being used for:

• The proceeds will be utilized to establish new retail stores across strategic locations to enhance market presence and drive revenue growth
• Working capital funds will support day-to-day operational requirements, including inventory, vendor payments, and other short-term financial obligations
• General corporate purposes to meet general business needs such as brand development, technology upgrades, and other strategic initiatives to support overall growth

Industry overview 

India’s rise to the world’s 2nd-largest mobile phone manufacturer. India’s mobile phone production has shown strong and sustained growth over the past few years, increasing from $30.00 billion in 2020-21 to $59.12 billion in 2024-25. This growth is expected to accelerate sharply, with production projected to reach USD 124.06 billion by 2029-30, more than doubling in five years growing at a CAGR of 15.98%. The expansion is driven by rising domestic demand, increasing exports, supportive government policies such as open network for Digital Commerce (ONDC) and India’s emergence as a major global manufacturing hub. The trend also reflects improvements in technology adoption, and investments in production infrastructure, positioning India as a key player in the global mobile phone industry.

The Mobiles phones & accessories retail distribution market ecosystem in India is undergoing a structural transformation, supported by rising smartphone adoption, improving retail penetration beyond metropolitan markets, and increasing digitalization across supply chains. Mobile accessories benefit from recurring demand, shorter replacement cycles, and strong linkage with smartphone sales, making the segment resilient and scalable. Over the medium to long term, policy support for expansion of organized retail formats, and improved access to financing are expected to enhance distribution efficiency, inventory turnover, and margin sustainability for retailers and distributors operating in this segment.

The mobile phone and accessories retail distribution market in India is entering a strong structural growth phase, supported by favorable macroeconomic trends, rising digital adoption, and sustained policy support. Increasing disposable incomes, rapid urbanization, and deeper smartphone penetration across Tier II & III cities are expanding the consumer base, while shorter handset replacement cycles are driving repeat purchases. Alongside handset growth, demand for mobile accessories - including chargers, earphones, power banks, wearables, and smart peripherals-is expected to grow at a faster pace due to higher attach rates, evolving technology standards, and rising consumer awareness around safety, performance, and brand reliability.

Pros and strengths

Company Owned Company Operated Stores: The company operates under a Company-Owned and Company-Operated (COCO) retail model, under which it owns and manages its retail outlets. This model enables the Company to directly manage store level operations, including staffing, inventory management, billing processes, and supervision across its retail network.

Strategic store locations and customer experience: The company operates retail stores across multiple locations within Surat district of Gujarat. Each store is configured to display mobile phones and accessories available for sale, allowing customers to view and examine products prior to purchase. Sales personnel at the stores assist customers by providing product-related information and facilitating the purchase process.

Innovative gift baskets to attract customers: The company offers promotional schemes at its retail outlets, which may include gift baskets provided to customers at the time of purchase during specific promotional or festive periods. Such gift baskets may include mobile accessories and other promotional items, as determined by the company from time to time.

Risks and concerns

Business is highly dependent on the brand recognition and reputation: The company is engaged in the multi-brand retail business, specializing in the sale of smartphones and allied accessories from leading global brands such as Apple, Samsung, Realme, Xiaomi, Oppo, Vivo, Motorola, Techno, Infinix, and others. Though it ais not required to promote the products of these well-known brands, it competes on price, quality services, dedication and commitment towards customers, in its industry.  Its financial performance is closely tied to the market success of the brands it sells. This success depends on various factors, including product design and features, brand identity, product quality, after-sales service, marketing strategies, public relations, and overall consumer perception. Customers who choose branded products generally expect a consistently high standard of quality and service. Any failure by these brand owners to meet those expectations whether due to product issues, poor customer experience, or negative publicity can adversely impact consumer trust. This, in turn, could negatively affect its sales, reputation, and overall business performance. 

Dependence on limited number of suppliers: The company is significantly dependent on a limited number of suppliers for the procurement of products. The company's top 10 suppliers accounted for 83.21%, 92.32%, 93.24% and 100.00% of its total purchases for the period ended December 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Any disruption, delay, or termination of business relationships with one or more of these key suppliers could adversely affect its ability to maintain inventory levels, fulfill customer demand, and operate efficiently.

Dependence on Gujarat market exposes company to geographic concentration risk: The company’s operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. Revenue from operations upto December 31, 2025, are generated within Surat district of Gujarat, India only. This geographical limitation could pose challenges to its long-term growth, as the continuous addition of new stores within a confined region increases the risk of market saturation. A saturated market may lead to reduced returns, as the customer base could be spread thinly across multiple outlets, thereby impacting overall profitability. Expanding in other districts and beyond Gujarat is essential for sustainable growth but would require considerable investment, strategic planning, and operational adjustments. Inability to manage market saturation effectively or to successfully expand into new regions may hinder its scalability and negatively impact on its financial performance.

Outlook

Vinit Mobile is engaged in the multi-brand retail business, specializing in the sale of smartphones and allied accessories from leading global brands such as Apple, Samsung, Realme, Xiaomi, Oppo, Vivo, Motorola, Techno, Infinix, and others. The company follows a COCO model, whereby its retail stores are owned and operated by the company. On the concern side, its business is primarily focused on the distribution of telecom products, such as mobile devices, accessories, and related gadgets, which leaves it vulnerable to risks due to the lack of diversification in its product offerings. Further, the mobile phone and accessories market is highly dynamic, with frequent price fluctuations driven by rapid technological advancements, product launches, changes in demand, and intense competition. Sudden drops in prices, particularly for older models, can lead to inventory devaluation, adversely affecting its margins and profitability.

The company is coming out with a maiden IPO of 21,60,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 150-158 per equity share. The aggregate size of the offer is around Rs 32.40 crore to Rs 34.13 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 110.02% from Rs 2,856.32 lakh in FY 2023-24 to Rs 5,998.86 lakh in FY 2024-25. Profit for the period increased from Rs 71.99 lakh in FY 2023-24 to Rs 390.21 lakh in FY 2024-25.

Meanwhile, the company is working towards developing a multi-channel sales platform, combining in-store experience with WhatsApp commerce and online ordering. The company has initiated preliminary steps regarding this, which includes development of its own ecommerce website and has undertaken marketing initiatives via print media like advertisement in local newspapers, distribution of pamphlets and social media platforms like WhatsApp, Instagram and Facebook to engage with existing and potential customers, creating awareness about digital ordering options. The company facilitates direct customer engagement through an ‘Enquire Now’ feature embedded on each product page of its e-commerce website. This feature redirects prospective customers to the company's WhatsApp business platform, enabling real-time communication with authorized Company representatives to address specific product inquiries and requirements.