Mehul Colours IPO is a book-built issue worth ₹21.66 crore, comprising a fresh issue of 30.08 lakh equity shares. The IPO opens for subscription on July 30, 2025, and closes on August 1, 2025. The basis of allotment is expected to be finalised on August 4, 2025. The company’s shares are proposed to be listed on the BSE SME platform, with a tentative listing date set for August 6, 2025.
The price band for Mehul Colours IPO is fixed between ₹68 to ₹72 per share. The minimum lot size for retail investors is 1,600 shares. A retail investor needs to invest at least ₹2,17,600 for 3,200 shares (2 lots). For high net-worth individuals (HNIs), the minimum application is for 3 lots, which is 4,800 shares amounting to ₹3,45,600.
Seren Capital Private Limited is acting as the book-running lead manager to the issue. Bigshare Services Private Limited is the registrar, and Asnani Stock Broker Private Limited is the market maker for the IPO. Detailed information can be found in the Mehul Colours IPO Red Herring Prospectus (RHP).
Industry Outlook
- India’s chemical industry is currently valued at around US$ 220 billion and is poised to touch US$ 300 billion by 2030 and US$ 1 trillion by 2040. With a projected annual demand growth of 9%, this expansion supports sustained opportunities for manufacturers like Mehul Colours Limited, especially in the pigment and colourant segments.
- Specialty chemicals make up 20% of the global US$ 4 trillion chemical market and are expected to grow in India at a CAGR of 12%, reaching US$ 64 billion by 2025.
- India’s plastic industry is on track to expand from ₹3 lakh crore to ₹10 lakh crore in the next 4–5 years. With plastic exports touching US$ 2.93 billion in FY25 (up 5.4% YoY), Mehul Colours Limited, which supplies pigments used in plastic manufacturing, is well-positioned to leverage the strong demand from this fast-growing sector.
- Global players are increasingly looking to India as a reliable supplier for chemical and pigment products due to shifting supply chains and cost advantages. This trend supports Mehul Colours Limited's opportunity to scale exports and tap into new international markets as global buyers diversify sourcing beyond China.
Mehul Colours IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The company plans to use part of the funds to set up a new manufacturing facility, aiming to boost production capacity.
- A portion of the proceeds will be used to meet working capital needs, ensuring smooth day-to-day operations.
- The remaining funds from the issue will be allocated towards general corporate purposes, helping the company strengthen its operational and financial position.
About Mehul Colours Limited
Mehul Colours Limited, established in 1995, is a manufacturer of masterbatches used widely in the plastics industry. These masterbatches are concentrated blends of pigments and additives that help in uniformly colouring and enhancing the performance of plastic products.
They are essential in ensuring consistent colour distribution and improving features such as UV resistance, flame retardancy and anti-static properties. In Fiscal 2025, the company catered to more than 500 customers across diverse sectors like stationery, household plastics, toys, agriculture tools, packaging materials, wires and cables, and electrical accessories.
Apart from masterbatches, the company also blends and sells customised pigments, which contributed 15.83% to the operational revenue, while masterbatches accounted for 84.17%. The product range includes colour, additive, special effect, and filler masterbatches.
These variants serve both aesthetic and functional needs in plastic production. The additive range offers solutions such as UV protection and flame retardancy, while special effects like pearl or glitter finishes cater to design preferences. Filler masterbatches, made using minerals like calcium carbonate and talc, enhance product rigidity and process efficiency.
The company operates two manufacturing units in Vasai East, Maharashtra, with a combined installed capacity of 12,84,000 kg annually. A dedicated R&D and testing centre at one of the units focuses on quality control and customised product development.
Mehul Colours derives over 93% of its revenue from domestic markets across 16 Indian states and 2 Union Territories, with the remaining 6.83% from exports to countries like Canada, Qatar and Thailand.
How To Check the Allotment Status of Mehul Colours IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Mehul Colours IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Mehul Colours IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Mehul Colours IPO
Registered office: Unit No - A 305,306, Kemp Plaza, Link Road, Chincholi Bunder Road, Mind Space, Near Evershine Mall, Malad West, Mumbai, Maharashtra - 400064
Phone: +91-22-28723555 / 2872 7874
E-mail: info@mehulcolours.com
Mehul Colours IPO Reservation
|
Investor Category |
Shares Offered |
|
Market Maker Shares |
1,52,000 (5.05%) |
|
QIB Shares |
14,25,600 (47.39%) |
|
NII (HNI) Shares |
4,28,800 (14.26%) |
|
Retail Shares |
10,01,600 (33.30%) |
|
Total Shares |
30,08,000 (100.00%) |
Mehul Colours IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Individual investors (Retail) (Min) |
2 |
3,200 |
₹2,17,600 |
|
Individual investors (Retail) (Max) |
2 |
3,200 |
₹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 IPO Promoter Holding
The promoters of the company include Mehul Pravinchandra Joshi and Bhakti Mehul Joshi.
|
Share Holding Pre-Issue |
96.86% |
|
Share Holding Post Issue  |
- |
Note: Equity dilution will be determined by subtracting the Shareholding Post Issue from the Shareholding Pre Issue.
Mehul Colours IPO Anchor Investors Details
|
Bid Date |
July 29, 2025 |
|
Shares Offered |
8,54,400 |
|
Anchor Portion Size (In ₹ Cr.) |
6.15 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
September 3, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
November 2, 2025 |
Key Performance Indicators for Mehul Colours IPO
|
KPI |
Value |
|
Price to Book Value  |
4.70 |
|
ROE (%) |
38.46 |
|
RoCE (%) |
43.53 |
|
RoNW (%) |
32.26 |
|
PAT Margin (%) |
24.11 |
|
EBITDA Margin (%) |
30.17 |
Mehul Colours IPO Prospectus
Mehul Colours IPO Registrar and Lead Managers
Mehul Colours IPO Lead Managers
- Seren Capital Private Limited
Registrar for Mehul Colours IPO
Bigshare Services Private Limited
- Contact Number: +91-22-6263 8200
- Email Address: ipo@bigshareonline.com
Mehul Colours IPO Registrar
Financial Performance of Mehul Colours Limited
| Particulars | Year ending on March 31, 2025 | Year ending on March 31, 2024 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 2,282.20 | 2,193.64 |
| Profit After Tax (in ₹ lakh) | 550.3 | 321.82 |
| Earnings per share (in ₹) | 7.30 | 4.27 |
| Net Worth (in ₹ lakh) | 1,706.06 | 1,155.71 |
| Return on Equity (in %) | 38.46 | 32.32 |
| Return on capital employed (RoCE) (%) | 43.53 | 36.67 |
| EBITDA (in ₹ lakh) | 688.47 | 397.03 |
Know before investing
Strengths
8Two in-house manufacturing units with combined capacity of 12,84,000 kg annually.
Dedicated R&D lab ensures quality control, testing and product development capabilities.
Strong promoter experience with 25+ years industry expertise supports consistent business growth.
Serving over 500 customers across diverse sectors, ensuring steady repeat business.
Export presence in countries like Canada, Qatar, Jordan and Thailand is growing steadily.
Planning new plant to increase capacity to 21,60,000 kg per year.
Wide product range includes colour, additive, effect and filler masterbatches.
Revenue from masterbatches grew to ₹1,920.83 lakh in FY 2025.
Risks
8Around 84.17 percent of revenue comes from masterbatches, posing concentration risk.
Dependence on top 10 customers contributing 48.19 percent may affect stability.
Raw material cost of 1,042.91 lakh makes profit vulnerable to price hikes.
Ongoing legal proceedings may impact operations if outcomes turn unfavourable.
Any compromise in product quality can lead to cancellations and loss of clients.
The company operates from leased premises which may affect continuity if leases end.
Delay in setting up a new facility may increase costs and reduce returns.
Business confined to Palghar location increases risk of regional disruptions.
Mehul Colours Limited Peer Comparison
| Company Name | EPS (Basic) | NAV (per share in ₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Mehul Colours Limited | 7.30 | 22.62 | - | 32.26 |
| Polylink Polymers India Limited | 0.96 | 13.52 | 28.00 | 7.13 |
| Deep Polymers Limited | 2.13 | 38.47 | 25.68 | 5.75 |
