Primary Market     

Published: September 15, 2025
Updated: September 15, 2025

Mehai Technology Right Issue Opens on Sept 26

With its registered office in Raipur (Rajasthan) and corporate office in Kolkata (West Bengal) BSE-listed Mehai Technology will enter the capital market with a rights issue to raise upto Rs. 74 crore positioning itself for the next phase of accelerated growth and financial stability. The rights issue will open for subscription on September 26, 2025 and close on October 17, 2025.

The company engaged in the manufacture and trading of electronic products such as led bulbs, tube lights, mood lights, power banks and open drives distributing through online market places and offline dealer networks. The company operates Pan-India through distributors and ecommerce platforms like Amazon, and Flipcart, gradually strengthening its retail footprint while aiming to establish a strong brand identify among consumers of electronics.

Since its inception in December 2013 and public listing in 2017, Mehai Technology has rapidly expanded across the trading of electronics and mobile accessories, services (software infrastructure, PAN validation, SMS analysis) and EPC modernisation projects in solar electrical and construction sectors. The company’s energic growth is further powered by subsidiaries in pharmaceuticals (KBS Corporates Pvt. Ltd.) and packaged water (Mehai Aqua Pvt. Ltd.), catering to major clients like IRCTC. The company has made rapid strides on the financial front. During the last 3 years its sales turnover has expanded more than 13 times – from Rs. 9 crore in the fiscal 2023 to Rs. 119 crore in the fiscal 2025 with operating profit shooting up 13 times – from Rs. 1 crore to Rs. 13 crore and the profit at net level surging around eight times from Rs. 1 crore to Rs. 8 crore.

The company’s financial position is steadily improving with reserves at the end of March 31, 2025 standing at Rs. 67 crore, more than doubled the equity capital of Rs. 31 crore. The proposed rights issue will further strengthen the financial position of the company. The proceeds of the rights issue will be utilised in funding the repayment or pre-payment in full or part of all portion of certain borrowing availed by the company. A part of the rights issue proceeds will be used for funding for working capital requirements of the company and lending of fresh funds to Mehai Aqua Pvt. Ltd., a subsidiary to facilitate it to repay or prepay in full or part of secured loan availed by the subsidiary.

In the case of the rights issue, the company will issue 37.10 crore equity share of Rs. one each to existing shareholders (record date September 18, 2025) in the ratio of the for one at a price of Rs. 2 per share (premium Re. 1 per share). Thus the total size of the issue will be Rs. 74 crore. The new shares will be listed on the BSE on October 24, 2025.

The rights issue at a price of Rs. 2 per piece reflects an investor-friendly approach of the management as the offered price Rs. 2 is substantially lower than the recent exright price of Rs. 8. 13. Comments a research analyst “this landmark rights issue offers existing shareholders a generous 1:1 entitlement at an attractive price of Rs. 2 per share. With over 3.7 crore shares available, the fully subscribed issue will double Mehai’s capital base to Rs. 74 crore – a powerful catalyst for future scale and opportunities.’