Mehul Colours Limited has launched its Book Built IPO worth ₹21.66 Crores, opening for subscription from July 30 to August 01, 2025. The IPO consists entirely of a Fresh Issue of 30.08 Lakh Equity Shares. The company, known for its innovative masterbatch solutions, aims to raise funds for capital expansion, working capital, and general corporate purposes. The IPO allotment is expected on August 4, and the shares are likely to be listed on BSE SME on August 6.

Mehul Colours – Company Overview

Mehul Colours Limited specializes in the manufacturing of masterbatch solutions for a variety of industries including packaging, construction, and automotive. Their products combine pigments, resins, and additives to deliver features such as UV resistance, vibrant colouring, and other customised properties.

Their state-of-the-art facilities and experienced leadership ensure the production of high-performance, sustainable masterbatches. The company is led by Mehul Pravinchandra Joshi and Bhakti Mehul Joshi, both of whom have significant experience in the pigments and plastic additives industry.

They don’t just manufacture products; they offer engineered plastic colour solutions aimed at transforming future applications.

IPO Details

• IPO Opening Date: July 30, 2025

• IPO Closing Date: August 01, 2025

• Price Band: ₹68 to ₹72 per share

• Face Value: ₹10 per share

• Market Capitalisation: ₹75.95 Crores (at upper band)

• IPO Lot Size: 1,600 shares

• Minimum Investment: ₹2,30,400 (2 lots or 3,200 shares)

• Registrar: BIGSHARE SERVICES PVT LTD

• Lead Manager: Seren Capital Private Limited

• Market Maker: Asnani Stock Broker Private Limited

Anchor Investor Allocation

Mehul Colours has raised ₹6.15 Crores from Anchor Investors by allotting 8,54,400 equity shares at ₹72 per share. This shows strong institutional interest, which boosts confidence in retail investors.

Objectives of the IPO

The IPO proceeds will be utilised as follows:

1. ₹1,463.48 Lakh for setting up a new manufacturing facility

2. ₹400.00 Lakh for working capital requirements

3. Remaining for general corporate purposes

These objectives indicate that Mehul Colours aims to expand its production capacity and enhance operational efficiency.

Financial Performance

The company has shown consistent revenue and profit growth over the past three fiscal years.

Key Ratios and Valuation

• Pre-Issue EPS (FY24): ₹7.3

• Post-Issue EPS: ₹5.2

• Pre-Issue P/E: 9.86x

• Post-Issue P/E: 13.80x

• Industry P/E: 27x

• ROCE: 43.53%

• ROE: 38.46%

• RoNW: 32.26%

These figures suggest strong financial health and a fair valuation relative to the sector.

Grey Market Premium (GMP)

The GMP for Mehul Colours IPO is currently at ₹11, indicating an expected listing price of ₹83, which is a potential gain of 15.92% over the upper band. However, investors should note that GMP is unofficial and non-regulated, and price discovery occurs only at listing.

Live Subscription Status

As of 12:00 PM on August 01, 2025, the IPO has been subscribed 1.86 times. This is a positive response considering it is the final day of subscription.

How to Check IPO Allotment

Investors can check their allotment on the BIGSHARE SERVICES PVT LTD website on August 4, 2025 using these steps:

1. Go to the allotment page

2. Select Mehul Colours IPO

3. Enter your Application Number/PAN/DP ID

4. Click submit

This process allows investors to easily track their share allotment.

Promoter and Leadership

Promoted by Mehul Pravinchandra Joshi and Bhakti Mehul Joshi, the company’s leadership team is instrumental in driving innovation, operations, and market growth. Their long-standing industry experience ensures strategic direction and operational efficiency.

Expert View: Should You Apply?

Considering:

• Consistent financial growth

• Decent GMP at ₹11

• Strong ROE and ROCE

• Reasonable valuation against industry average

The IPO appears to be fairly priced and may offer listing gains. However, being listed on BSE SME, it carries higher risk compared to mainboard IPOs.

Hence, this IPO is recommended only for risky investors looking for short-term listing gains. Long-term investors should monitor post-listing performance before making fresh entries.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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