Dain Colour Chem IPO

Dain Colour Chem IPO is a book-building issue consisting entirely of a fresh issue of up to 31 lakh equity shares. The equity shares are proposed to be listed on the BSE SME platform.

Horizon Management Private Limited is the book-running lead manager to the issue, while Maheshwari Datamatics Private Limited is the registrar. Key details, including the IPO dates, price band and lot size, are yet to be announced.

About Dain Colour Chem Limited

Dain Colour Chem Limited was originally established as a partnership firm, M/s Dain Colour Chem, on May 27, 2015, and was registered with the Registrar of Firms, Ahmedabad, on October 17, 2015. The business was subsequently converted into a public limited company, and Dain Colour Chem Limited was incorporated on January 20, 2023.

The company is engaged in the manufacturing and supply of colour solutions, with a diversified portfolio that includes synthetic food colours, lake colours, blended food colours, natural food colours, pharmaceutical colours and cosmetic colours. Its products cater to a wide range of industries, including food and beverages, pharmaceuticals, nutraceuticals, cosmetics, personal care and animal feed.

Dain Colour Chem operates an integrated manufacturing facility located at Dhanot, Chhatral, Kalol in Gujarat, spanning approximately 96,000 square feet. The facility supports formulation, blending, testing, packaging and dispatch operations, enabling the company to provide customised colour solutions to customers across different industries.

The company has steadily expanded its production capacity over the years, increasing from 400 MTPA in 2016 to 1,800 MTPA in FY26. It serves customers through a B2B business model and has established an international presence with exports to countries including Vietnam, Thailand, Uganda, Nepal, China, Uzbekistan, Ukraine, Turkey and Senegal.

Dain Colour Chem has built its business around product quality, regulatory compliance and customer-centric formulations. The company holds certifications including FSSC 22000, ISO 22000, GMP, Halal and Kosher, while also maintaining environmentally sustainable operations through Zero Liquid Discharge (ZLD), Multi Effect Evaporation (MEE) systems and solar power initiatives.

Industry Outlook

• India's synthetic food colour industry has experienced strong growth, with production increasing from 0.49 thousand MT in 2021 to 0.84 thousand MT in 2025, representing a CAGR of 14.42%.
• Rising consumption of processed and packaged foods, confectionery, bakery products, dairy items and beverages is expected to continue driving demand for food colour solutions across domestic and international markets.
• The pharmaceutical and nutraceutical sectors are increasingly using colour formulations in their products, creating additional growth opportunities for manufacturers of specialised colour solutions.
• Expanding export opportunities and increasing global demand for customised colour formulations are supporting the growth prospects of Indian manufacturers.
• Government initiatives supporting food processing, manufacturing and exports are expected to benefit organised players operating in the synthetic food colour industry.
• Although demand for natural and clean-label ingredients is increasing, synthetic food colours continue to remain important due to their cost-effectiveness, stability, consistency and longer shelf life.
• Growing urbanisation, rising disposable incomes and changing consumer preferences are expected to support long-term demand across food, beverage, pharmaceutical and cosmetic applications.

Dain Colour Chem IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Purchase machinery and equipment to improve existing production capabilities and support future manufacturing expansion.
• Increase production capacity through the installation of new machinery, including an MVR Evaporator Plant and other process infrastructure.
• Invest in a solar power system to improve energy efficiency and reduce operating costs.
• Repay or prepay a portion of the company's existing borrowings, including facilities availed from Janakalyan Sahakari Bank Ltd.
• Meet the company's working capital requirements arising from business growth, inventory needs and receivables funding.
• Support capacity expansion, product diversification and business growth initiatives.
• Utilise the remaining funds for general corporate purposes and strengthen overall financial flexibility.

Financial Performance of Dain Colour Chem Limited

Madhur Knit Crafts Limited Peer Details Comparison

Strengths and Opportunities of Dain Colour Chem IPO

1. Diverse product portfolio comprising synthetic food colours, lake colours, blended colours, natural food colours, pharmaceutical colours and cosmetic colours.
2. Strong revenue growth from ₹2,518.43 lakh in FY24 to ₹5,389.07 lakh in FY26.
3. Profit after tax increased from ₹309.99 lakh in FY24 to ₹827.20 lakh in FY26, reflecting improving profitability.
4. Established export footprint across multiple international markets, with exports contributing 43.23% of revenue in FY26.
5. Integrated manufacturing facility with formulation, blending, testing and packaging capabilities under one roof.
6. Certifications such as FSSC 22000, ISO 22000, GMP, Halal and Kosher enhance customer confidence and regulatory compliance.
7. Strong customisation and shade-matching capabilities that help cater to diverse customer requirements.
8. Experienced promoter and management team with more than a decade of industry expertise.
9. Capacity expansion, export growth and increasing demand from food, pharmaceutical and cosmetic industries provide long-term growth opportunities.

Risks and Threats of Dain Colour Chem IPO

1. High customer concentration risk, with the top 10 customers contributing 92.40% of revenue in FY26.
2. Dependence on a limited number of key customers could adversely affect revenue if major relationships are lost.
3. Exposure to fluctuations in raw material prices may impact operating margins and profitability.
4. The business is subject to stringent food safety, quality and environmental regulations, resulting in ongoing compliance obligations.
5. Heavy reliance on export markets exposes the company to foreign exchange fluctuations, geopolitical developments and international trade risks.
6. The industry remains competitive, with both organised and unorganised players competing on pricing, product quality and customer relationships.
7. Growing consumer preference for natural and clean-label ingredients could affect demand for certain synthetic food colour products over the long term.
8. Manufacturing disruptions arising from equipment failure, accidents, natural disasters or supply chain interruptions could adversely impact operations.
9. The company reported negative operating cash flows of ₹670.37 lakh in FY26, primarily due to higher receivables, which may affect liquidity if not managed effectively.

Dain Colour Chem IPO Reservation

Dain Colour Chem IPO Promoter Holding

The promoters of the company are Dilip J. Madhani, Madhani Ravi Dilipkumar, Smita Dilip Madhani, Avni Ravi Madhani, Sangani Vivek Rajeshbhai, Jigar Bharatbhai Suthar and Rupesh Dwarkadas Sangani.

Dain Colour Chem IPO Prospectus

• Dain Colour Chem IPO DRHP

Dain Colour Chem IPO Registrar and Lead Managers

Dain Colour Chem IPO Lead Managers

• Horizon Management Private Limited

Registrar for Dain Colour Chem IPO

Maheshwari Datamatics Private Limited

• Contact Number: 22435029
• Email Address: ipo@maashitla.com

Dain Colour Chem IPO Registrar

How To Apply for Dain Colour Chem IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Dain Colour Chem IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Dain Colour Chem IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

Don't miss the next investment opportunity - browse the Upcoming IPO on Angel One.

Contact Details of Dain Colour Chem IPO

Registered Office: Plot No. 5, Neelkanth Industrial Estate, B/H Gayatri Dairy, Vill Dhanot, Gandhinagar, Gujarat, 382729.

Phone: 972 518 2215

E-mail: cs@daincolourchem.com