Mehul Colours Limited has opened its Initial Public Offering (IPO) for subscription from July 30, 2025, to August 01, 2025. The company, known for its innovation in masterbatch solutions across sectors such as packaging, automotive, and construction, aims to raise ₹21.66 Crores through a Book Built Issue, entirely comprising a Fresh Issue of 30.08 lakh shares. The IPO is priced between ₹68 to ₹72 per equity share.

The minimum lot size for retail investors is 1,600 shares, and investors must apply for at least 2 lots (3,200 shares), making the minimum investment amount ₹2,30,400. The IPO will list on the BSE SME, with a tentative listing date of August 06, 2025.

Company Overview:

Mehul Colours is a specialist in designing customized masterbatches—combinations of pigments, resins, and additives—tailored for optimal aesthetics, functionality, and durability in plastics. Their expertise lies in delivering vibrant colours, UV-resistant solutions, and custom-engineered performance features for various plastic applications.

Backed by state-of-the-art facilities and a qualified technical team, the company focuses on quality, sustainability, and customization. Led by promoters Mehul Pravinchandra Joshi and Bhakti Mehul Joshi, the firm has built a solid foundation in the pigments and masterbatch industry.

IPO Structure & Financial Details:

• IPO Type: Book Built Issue

• Issue Size: ₹21.66 Crores

• Price Band: ₹68 – ₹72

• Lot Size: 1,600 shares

• Market Cap at ₹72/share: ₹75.95 Crores

• Lead Manager: Seren Capital Private Limited

• Registrar: BIGSHARE SERVICES PVT LTD

• Market Maker: Asnani Stock Broker Private Limited

Utilization of IPO Proceeds:

1. ₹14.63 Crores for setting up a new manufacturing facility

2. ₹4 Crores for meeting working capital requirements

3. Remaining funds for general corporate purposes

Mehul Colours Financial Performance:

The company has demonstrated a consistent financial uptrend, as shown below:

• Pre-issue EPS: ₹7.3

• Post-issue EPS: ₹5.2

• Pre-issue P/E: 9.86x

• Post-issue P/E: 13.80x

• Industry P/E: ~27x

• ROCE (FY24): 43.53%

• ROE (FY24): 38.46%

• RoNW (FY24): 32.26%

These strong metrics suggest that Mehul Colours is fundamentally sound and the IPO is reasonably priced compared to industry peers.

GMP and Listing Expectations:

As of July 28, 2025, the Grey Market Premium (GMP) for Mehul Colours IPO is approximately ₹11, suggesting an expected listing price of ₹83, a potential gain of ~15.92%. However, it is crucial to note that GMP is not regulated and may not reflect actual listing prices.

IPO Subscription Status (Live Updates):

As of 11:30 AM on July 31, 2025, the IPO has been subscribed 1.03 times, indicating healthy early investor interest.

• Anchor Investment: ₹6.15 Crores raised

• Anchor Shares Allocated: 8,54,400 equity shares at ₹72

• Allotment Date: August 04, 2025 (Monday)

• Listing Date (Tentative): August 06, 2025 (Wednesday)

How to Check Mehul Colours IPO Allotment:

Investors can check the allotment status via the registrar's website by:

1. Selecting Mehul Colours Limited from the IPO dropdown

2. Entering Application Number, PAN, or DP Client ID

3. Clicking Submit to view status

Allotment status will be available from August 04, 2025 onwards.

Day-Wise GMP Trend:

Mehul Colours IPO Review – Apply or Avoid?

Considering the strong financial performance, reasonable valuation, and the current GMP trends, risky investors looking for listing gains may consider applying for the Mehul Colours IPO. The ROE and ROCE metrics show efficient capital utilization, and promoter experience adds further confidence.

However, investors must be cautious of market volatility and understand the risks associated with SME listings. The IPO is suited for informed investors with a high-risk appetite.

Disclaimer:

The content above is provided for educational and informational purposes only. It is not financial advice. Investors should consult with their financial advisors before making investment decisions. IPO investments are subject to market risks. Read all related documents and disclosures carefully before investing.

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

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

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