Finbud Financial Services IPO...
31 Oct, 2025
Mehul Colours Limited IPO
Mehul Colours Ltd is launching its IPO from July 30, 2025, to August 1, 2025. The shares will be offered at a price band of ₹68 to ₹72 per share. The lot size is 1,600 shares, making the minimum investment approximately ₹115,200. The company aims to raise about ₹21.66 crores through a fresh issue of shares. The shares are proposed to be listed on the BSE SME platform on or around August 6, 2025. The IPO is a book-building issue type and the anchor investors’ lock-in periods are 30 days for 50% of shares and 90 days for the remaining portion.
Company Background
Founded in 1995, Mehul Colours Ltd specializes in manufacturing masterbatches and pigments used in the plastics industry. Masterbatches are concentrated colorants or additives used to impart color and functional properties to plastic products. The company’s products cater to diverse sectors such as packaging, agriculture, electrical components and consumer goods. Over the years, Mehul Colours has built a solid reputation for quality and customization with a diversified customer base exceeding 500 clients as of FY 2025.
Operations & Product Range
Facility and Production
Mehul Colours operates with two manufacturing units located in Vasai, Mumbai, supported by an in-house R&D and quality testing center. The company has an annual production capacity of approximately 1.28 million kilograms of masterbatch products. Its R&D center controls quality and develops innovative solutions tailored to client requirements, ensuring high product standards and operational efficiency.
Brand and Market Presence
The company is ISO 9001:2015 certified, reflecting its commitment to quality management systems. It supplies masterbatches and pigments to a wide variety of industries and has maintained long-term relationships with major customers that result in repeat business. Its products are well-established in the domestic market, with a strategic focus on providing customized color and additive solutions. This diversified customer and industry presence strengthens its market position against competitors.
Revenue Channels
Mehul Colours Ltd generates its revenue primarily through two main product categories:
- • Masterbatches: These are concentrated mixtures of pigments and additives used in the plastics industry to impart color and functional properties to plastic products. Masterbatches accounted for approximately 84.17% of the revenue in FY 2025. The company offers different types such as colour masterbatches, additive masterbatches, special effect masterbatches and filler masterbatches.
- • Pigments: These are solid colourants in fine particle form, blended to create customized pigment solutions for specific industries and customer needs, contributing around 15.83% of the revenue in FY 2025.
Together, masterbatches and pigments form the core revenue channels, with masterbatches being the dominant segment. The company serves over 500 customers across various industries including packaging, agriculture, electrical components, consumer goods and more.
In FY 2025, Mehul Colours reported total revenues of about ₹22.82 crores, with the bulk coming from masterbatch sales and the rest from pigment sales.
Management & Shareholding
Promoters and Shareholders
The promoters of Mehul Colours Ltd bring extensive industry experience. The Managing Director is Mr. Mehul Pravinchandra Joshi. The IPO is a fresh issue with no offer for sale, meaning existing promoters are not selling shares through this issue. The pre-IPO shareholding by promoters is not explicitly stated, but the fresh issue proceeds will be used largely for capacity expansion and working capital.
Board Members
Detailed publicly available information lists Mr. Mehul Pravinchandra Joshi as the Managing Director, but comprehensive details on the full Board of Directors are sparse in available IPO filings. Typically, SME IPO companies have a board comprising the promoters and a few independent directors, ensuring governance standards are met.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Mehul Colours Limited IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Mehul Colours Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | July 30, 2025 to August 1, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | ₹68 to ₹72 per share |
| Lot Size | 1,600 Shares |
| Sale Type | Fresh Capital |
| Total Issue Size | 30,08,000 shares (aggregating up to ₹21.66 Cr) |
| Reserved for Market Maker | 1,52,000 shares (aggregating up to ₹1.09 Cr) Asnani Stock Broker Private Limited |
| Net Offered to Public | 28,56,000 shares (aggregating up to ₹20.56 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 75,41,040 shares |
| Share Holding Post Issue | 1,05,49,040 shares |
Mehul Colours Limited IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Wed, Jul 30, 2025 |
| IPO Close Date | Fri, Aug 1, 2025 |
| Tentative Allotment | Mon, Aug 4, 2025 |
| Initiation of Refunds | Tue, Aug 5, 2025 |
| Credit of Shares to Demat | Tue, Aug 5, 2025 |
| Tentative Listing Date | Wed, Aug 6, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 1, 2025 |
Mehul Colours Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 3,200.00 | ₹2,30,400 |
| Individual investors (Retail) (Max) | 2 | 3,200.00 | ₹2,30,400 |
| S-HNI (Min) | 3 | 4,800 | ₹3,45,600 |
| S-HNI (Max) | 8 | 12,800 | ₹9,21,600 |
| B-HNI (Min) | 9 | 14,400 | ₹10,36,800 |
Mehul Colours Limited IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| Share Holding Pre Issue | 96.86% |
| Share Holding Post Issue | - |
Competitive Strength:
- ● In-house manufacturing and R&D capabilities that enable product innovation and quality control.
- ● A diversified customer base across multiple industries reduces dependency risk.
- ● Long-standing customer relationships lead to repeat business.
- ● Continuous revenue and profit growth trend from FY 2023 to FY 2025.
- ● ISO 9001:2015 certification highlights robust quality management systems.
- ● Specialty in customized masterbatch and pigment solutions allows market differentiation.
Mehul Colours Limited IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Mar 2025 | 18.95 | 23.71 | 5.5 | 17.06 | - | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 13.87 | 22.66 | 3 | 12 | 0.36 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 10.82 | 21.37 | 2.94 | 8.36 | - | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 38.46% |
| ROCE | 43.53% |
| RoNW | 32.26% |
| PAT Margin | 24.11% |
| EBITDA Margin | 30.17% |
| Price to Book Value | 4.7 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 7.3 | 5.22 |
| P/E (x) | 9.87 | 13.80 |
Objectives of the IPO
The IPO proceeds, approximately ₹21.66 crores, are planned to be utilized as follows:
- • Around ₹14.63 crores (67.5%) for capital expenditure towards setting up a new manufacturing facility to increase production capacity.
- • ₹4 crores (18.46%) for working capital requirements to support day-to-day operations.
- • The remaining amount will be used for general corporate purposes such as strengthening the financial position and business operations.
Conclusion
Mehul Colours Ltd IPO presents an opportunity to invest in a growing niche player in the plastic additives industry, with a focus on masterbatches and pigments. With nearly three decades of operational history, an in-house R&D facility and a wide customer base, the company appears well-positioned to leverage increased capacity and tap new markets. Prospective investors should consider the company’s growth trajectory, quality certifications and industry positioning, while also noting risks such as dependence on a highly competitive sector and supplier concentration.
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Frequently asked Questions (FAQs )
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1. When does the Mehul Colours IPO open and close?
- The IPO opens on July 30, 2025, and closes on August 1, 2025.
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2. What is the price band and lot size for the IPO?
- The price band is ₹68 to ₹72 per share, and the lot size is 1,600 shares.
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3. Where will Mehul Colours IPO be listed?
- On the BSE SME platform.
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4. Who is the managing director of Mehul Colours Ltd?
- Mr. Mehul Pravinchandra Joshi.
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