About the Company:
Merritronix Ltd is an Electronics Systems Design and Manufacturing services (“ESDM”) company specializing in high-reliability, missioncritical electronic assemblies and systems for defence, aerospace, telecommunications, Rapid Prototyping for design houses OEMs, Engineering services Companies and specialized industrial electronics.
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 us to serve industries that require reliable and performa nceoriented electronic systems.
A key part of our 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.
Company’s 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.
Company’s 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.
Company’s Manufacturing Facility:
Company’s manufacturing facility as on March 31, 2026 has an installed capacity of 10,75,000 boards for SMT assembly, 6,00,000 boards for Through-Hole Technology (THT) assembly, and 4,20,000 units for product assembly/box build, aggregating to a total installed capacity of 17,85,000 production units per annum.
Company’s Clients:
Company entered defence and aerospace electronics manufacturing, establishing itself as a vendor to defence public sector undertakings.
Company has catered to various reputed customers operating in the aerospace, defence electronics, communication systems and technology sectors.
Company’s customer base includes Apollo Micro Systems Ltd, Bit Mapper Integration Technologies Private Ltd, Linkwell Telesystems Private Ltd, SCI-COM Software India Private Ltd and Sigma Advanced Systems Limited and other prominent PSU client’s. Certain of our customers are also associated with prominent government organizations, public sector undertakings (“PSUs”), and defence-related projects, which reflects the quality standards and reliability of our products and services.
Product-wise Revenue Bifurcation: (in Lakhs)
Industry-wise Revenue Bifurcation:(in lakhs)
Management Team:
- Mr. Dovari Amarnath (Designation: Managing Director)
- Mr. Dovari Yesudas (Designation: Chairman and Executive Director )
Company’s Management:
Company is led by an experienced and professionally qualified management team with strong domain expertise in the electronics systems design and manufacturing (“ESDM”) sector. Our Executive Director and Chairman, Mr. Dovari Yesudas, brings over three decades of industry experience and has been instrumental in establishing the Company’s precision electronics manufacturing capabilities, particularly in defence and critical electronics applications.
Managing Director, Mr. Dovari Amarnath, a Computer Science engineering graduate from IIT Madras with over three decades of involvement in the Company, has played a key role in strengthening our technical capabilities and positioning the Company in high-reliability and missioncritical electronics manufacturing.
Objectives of the Issue:
Fresh Issue: (Rs.70 cr )
- 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 our Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital expenditure towards purchase of Machinery and equipment | 21.36 cr |
| Funding working capital requirements | 21.95 cr |
| Repayment/ prepayment, in full or part, of all or certain outstanding borrowings availed by our Company |
12.71 cr |
Our Board in its meeting dated March 05, 2026 took note that an amount of ₹ Upto 2,136.43 Lakhs is proposed to be utilised for Funding of capital expenditure requirements of our company towards purchase of machinery and equipment from the Net Proceeds.
As part of our capacity expansion and technology upgradation initiatives, our Company proposes to procure certain equipment including a Screen Printer NPM-GP/L, Board Handling Units, Solder Paste Inspection System, Reflow Oven and 3D AOI(Automated Optical Inspection) systems.
These machines are intended to enhance our surface mount technology (SMT) assembly capabilities, improve manufacturing efficiency, strengthen quality control processes and support the production of high-density and complex PCB assemblies for applications across industries including defence, aerospace and industrial electronics.
The table below sets forth details of capacity expansion pursuant to Capital expenditure towards purchase of Machinery and equipment:
Justification for expansion whereby the present capacity remains underutilized.
- The FY2026 utilisation figures of 50.33% (SMD), 74.33% (TMD), and 75.24% (Box Build) are calculated based on production data for 9 months only (April–December 2025), while installed capacity in the denominator reflects the full 12-month year.
- This creates a structural understatement of utilisation. As our Q3 and Q4 are order heavy quarters which can be observed in the previous years too. Additionally, SMD installed capacity increased mid-year (from 7,65,000 to 10,75,000 boards) when the new Panasonic machine was commissioned in January 2026, further suppressing the ratio.
- On a comparable annualised basis, FY2025 utilisation of 89%– 95% across all sections reflects near-saturation of the existing lines. Further, and critically, the majority of the proposed capex does not add the same type of SMT capacity — it adds new quality, testing, and inspection capabilities (Vacuum Reflow Oven, ICT, X-Ray, Laser Marker, PCB Cleaning Machine) that the Company does not currently possess and which are prerequisites for qualifying for higher-specification defence programmes.
- These are capability investments independent of current utilisation. The proposed capital expenditure is expected to result in improved production throughput, enhanced process automation, reduced manufacturing defects and higher quality assurance standards.
Positives for the Company:
Three decades of Operating Legacy in Mission-Critical Defence and Aerospace Electronics.
- Company 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, our business model emphasizes precision engineering, customization and stringent quality compliance, which creates relatively higher entry barriers within this segment.
- Company has positioned ourselves 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 our revenue from operations in Fiscal, 2026, reflecting our deep integration into India’s strategic electronics manufacturing ecosystem.
Strong Order Book providing revenue visibility.
- Company 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. Our order backlog reflects sustained customer confidence in our technical capabilities, quality standards and execution reliability in handling high-reliability electronic assemblies.
- As of April 30, 2026, Company’s order book stood at Rs.96. crores.
Financials of the Company:
| (in Crores) | FY 24 | FY 25 | FY 26 |
|---|---|---|---|
| Revenue | 86.01 | 114.04 | 156.24 |
| Net Profit | 3.05 | 8.65 | 16.10 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Merritronix Ltd | 10 | 13.92 | 10.7 | 30.66% | 41.56 |
| Centum Electronics Ltd | 10 | N.A | N.A | (15.09%) | 233.36 |
| Vinyas Innovative Technologies Ltd | 10 | 15.43 | 62.85 | 30.66% | 41.56 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st June 2026 |
| Issue Closes on | 3rd June 2026 |
| Issue Price | Rs.141-149 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.2,98,000 |
| Issue Constitutes | 26.88 % |
| Issue Size | Rs70. cr |
| Market Cap | Rs.260 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 47,00,000 |
| Equity Shares Prior to the Issue | 1,27,84,854 |
| Equity Shares after the Issue | 1,74,84,854 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 4th June 2026 |
| Initiation of Refunds | on or Before 5th June 2026 |
| Credit of Equity Shares: | on or Before 5th June 2026 |
| Listing Date: | on or Before 8th June 2026 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 13.92 | 10.7 | 30.66% | 41.56 | 0.81 |
| Company Contact Info: |
|---|
| Merritronix Ltd C-22, Electronic Complex, Kushaiguda, Hyderabad, Telangana, India, 500062. Telephone: +91 8297912056; E-mail: cs@merritronix.com Website: https://www.merritronix.com/ |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address: Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri East, Mumbai – 400 093, Maharashtra, India Telephone: 022-62638200 E-mail id: ipo@bigshareonline.com Website: www.bigshareonline.com |
