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.