Mehul Colours IPO 2025: Date, GMP, Review, Price, Allotment Details
The Mehul Colours IPO, an SME IPO from Mumbai-based Mehul Colours Limited, opens for subscription on July 30, 2025, and closes on August 1, 2025, aiming to raise ₹21.66 crores. Priced at ₹68–₹72 per share, this IPO targets investors interested in masterbatches and pigments for the plastics industry. As of July 27, 2025, the grey market premium (GMP) ranges from ₹18–₹22, suggesting potential listing gains of 25–30%. This article provides a comprehensive overview of the Mehul Colours IPO, including key dates, price details, financial performance, review, and allotment process to guide investors.
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Mehul Colours IPO Details
The Mehul Colours IPO is a book-built SME issue comprising a fresh issue of 30.08 lakh equity shares (₹21.66 crores) with a face value of ₹10 per share. There is no offer for sale (OFS) component, as confirmed by the Red Herring Prospectus (RHP) filed on July 23, 2025. Below are the key details:
| Particulars | Details |
|---|---|
| IPO Open Date | July 30, 2025 |
| IPO Close Date | August 1, 2025 |
| Face Value | ₹10 per equity share |
| IPO Price Band | ₹68 to ₹72 per share |
| Issue Size | Approx. ₹21.66 crores (30.08 lakh shares) |
| Fresh Issue | Approx. ₹21.66 crores (30.08 lakh shares) |
| Offer for Sale | Nil |
| Lot Size | 1,600 shares |
| Issue Type | Book Built Issue |
| IPO Listing | BSE SME |
| Retail Quota | Not more than 35% |
| QIB Quota | Not more than 50% |
| NII Quota | Not more than 15% |
| DRHP Draft Prospectus | Click Here |
| RHP Draft Prospectus | Click Here |
| Anchor Investors List | Click Here |
| Book Running Lead Managers | Seren Capital Private Limited |
| Registrar | Bigshare Services Pvt Ltd |
| Market Maker | Asnani Stock Broker Private Limited |
The IPO allocates 50% to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Individual Investors (RIIs), with 1.52 lakh shares reserved for the market maker. The minimum investment for retail investors is ₹1,15,200 (1,600 shares at ₹72). The public issue constitutes 28.51% of the post-issue paid-up equity share capital, with the net issue (excluding market maker portion) at 27%. No anchor investor details are available as of July 27, 2025.
Mehul Colours IPO Market Lot
The Mehul Colours IPO minimum market lot is 1,600 shares with a ₹1,15,200 application amount at the upper price band. Retail investors can apply for up to 2 lots (3,200 shares, ₹2,30,400), while HNIs have higher minimums, per BSE SME bidding rules effective July 1, 2025. Note: The original document incorrectly listed 3,200 shares as the minimum lot; web sources confirm 1,600 shares.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1,600 | ₹1,15,200 |
| Retail Maximum | 2 | 3,200 | ₹2,30,400 |
| S-HNI Minimum | 3 | 4,800 | ₹3,45,600 |
| B-HNI Minimum | 9 | 14,400 | ₹10,36,800 |
Mehul Colours IPO Dates
The key dates for the Mehul Colours IPO are as follows:
| Event | Date |
|---|---|
| IPO Open Date | July 30, 2025 |
| IPO Close Date | August 1, 2025 |
| Basis of Allotment | August 4, 2025 |
| Refunds | August 5, 2025 |
| Credit to Demat Account | August 5, 2025 |
| IPO Listing Date | August 6, 2025 |
Investors can track subscription status on BSE or the registrar’s portal (Bigshare Services) during the subscription period. Bidding closes at 5:00 PM on August 1, with UPI mandate acceptance until 5:00 PM.
Promoters of Mehul Colours IPO
The promoters are Mehul Pravinchandra Joshi and Bhakti Mehul Joshi.
About Mehul Colours IPO
Incorporated in 1995, Mehul Colours Limited is a Mumbai-based manufacturer of masterbatches and pigments for the plastics industry. Operating two production units in Tungareshwar Industrial Estate, Vasai East, with a combined annual capacity of 12.84 lakh kg and a 6,400 sq. ft. built-up area, the company employs 32 permanent staff as of June 30, 2025. Its product portfolio includes colour, additive, special effect, and filler masterbatches, serving over 500 customers across sectors like packaging, stationery, toys, agriculture, household items, pipes, cables, and electrical fittings. In FY25, masterbatches contributed 84.17% and pigments 15.83% to revenue. The company supports various plastic processing methods, including injection, blow, and roto molding, and extrusion. Domestic sales (93.17%) span 16 states and 2 UTs, notably Maharashtra, Gujarat, and Kerala, while exports (6.83%) reach Canada, Jordan, Qatar, and Thailand. With in-house R&D and ISO 9001:2015 certification, Mehul Colours focuses on innovation and quality.
Mehul Colours IPO Company Financial Report
Mehul Colours’ financials show steady growth, driven by demand for masterbatches. Below is a summary of its restated financials:
| Period Ended | Revenue (₹ Cr) | Expense (₹ Cr) | Profit After Tax (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|---|
| 2023 | 21.37 | 17.27 | 2.94 | 10.82 |
| 2024 | 22.66 | 18.31 | 3.22 | 13.87 |
| 2025 | 23.71 | 16.31 | 5.50 | 18.95 |
Revenue grew by 5% and PAT by 71% from FY24 to FY25, with a 5% revenue CAGR and 37% PAT CAGR from FY23–FY25. The company reported EBITDA of ₹7.15 crores and a 30.17% EBITDA margin in FY25.
Mehul Colours IPO Valuation – FY2025
Key valuation metrics for Mehul Colours IPO based on FY25 financials are as follows:
| KPI | Values |
|---|---|
| ROE | 38.46% |
| ROCE | 43.53% |
| EBITDA Margin | 30.17% |
| PAT Margin | 24.11% |
| Debt to Equity Ratio | 0.00 |
| Earning Per Share (EPS) | ₹7.30 (Basic, Pre-Issue) |
| Price/Earning P/E Ratio | 9.86 (at ₹72) |
| Return on Net Worth (RoNW) | 32.26% |
| Net Asset Value (NAV) | ₹22.62 |
The P/E ratio is calculated using FY25 EPS, indicating an attractive valuation for an SME IPO. Post-issue EPS is estimated at ₹5.20, yielding a P/E of 13.85.
Peer Group Comparison
Below is a comparison with listed peers in the masterbatches and plastics sector:
| Company | EPS | PE Ratio | RoNW % | NAV | Income (₹ Cr) |
|---|---|---|---|---|---|
| Polylink Polymers (India) Limited | 0.96 | 28.00 | 7.13% | 13.52 | 91.23 |
| Deep Polymers Limited | 2.13 | 25.68 | 5.75% | 38.47 | 100.91 |
Mehul Colours’ lower P/E ratio suggests undervaluation, though its smaller scale limits direct comparability.
Objects of the Issue
The net proceeds from the fresh issue will be used for:
- Funding capital expenditure for a new manufacturing facility (₹8.50 crores).
- Funding working capital requirements (₹8.00 crores).
- General corporate purposes (balance amount).
Mehul Colours IPO Review
The Mehul Colours IPO, opening July 30, 2025, has sparked interest, with X posts highlighting its ₹21.66 crore issue and ₹68–₹72 price band. The ₹21.66 crore fresh issue targets capacity expansion and working capital in the masterbatches market, projected to grow at a 6% CAGR in India through 2030, driven by plastics demand in packaging and automotive sectors. FY25 financials show ₹23.71 crores revenue (5% growth) and ₹5.50 crores PAT (71% growth), with a 32.26% RoNW and zero debt. The P/E ratio of 9.86 (at ₹72) is attractive compared to peers like Deep Polymers (P/E 25.68), with a market cap of ₹75.95 crores. The GMP of ₹18–₹22 suggests a listing price of ₹86–₹94 (25–30% gains), though subscription data is unavailable as of July 27, 2025. Strengths include a diversified customer base (500+ clients), in-house R&D, and exports to Canada and Qatar. Risks include customer concentration (top 10 clients contribute 40% of revenue), raw material price volatility, and SME IPO volatility. Brokerages like SMC Global (“Subscribe”) and Reliance Securities (neutral) cite strong margins but flag dependence on key clients.
Recommendation: Suitable for long-term investors with high risk tolerance, given robust financials, attractive valuation, and market tailwinds. Short-term investors should monitor GMP and subscription trends due to potential oversubscription. Consult a financial advisor before investing.
Mehul Colours IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
IPO Lead Managers aka Merchant Bankers
- Seren Capital Private Limited
Company Address
Mehul Colours Ltd.
Unit No – A 305,306, Kemp Plaza, Link Road,
Chincholi Bunder Road, Mind Space, Near Evershine Mall,
Malad West, Mumbai, Maharashtra, 400064
Phone: +91-22-2872 3555
Email: info@mehulcolours.com
Website: https://www.mehulcolours.com/
Mehul Colours IPO FAQs
What is Mehul Colours IPO?
Mehul Colours IPO is an SME IPO to raise ₹21.66 crores via a fresh issue of 30.08 lakh shares. The issue is priced at ₹68 to ₹72 per share and will list on BSE SME.
When will Mehul Colours IPO open for subscription?
The IPO opens on July 30, 2025, and closes on August 1, 2025.
What is Mehul Colours IPO Investors Portion?
The investors’ portion is 50% for QIB, 15% for NII, and 35% for Retail.
How to Apply for the Mehul Colours IPO?
Apply via ASBA online through your bank account or UPI through stock brokers like Zerodha or Upstox. Alternatively, fill an offline IPO form and submit it to your broker.
What is Mehul Colours IPO Issue Size?
The issue size is ₹21.66 crores, comprising a fresh issue of 30.08 lakh shares.
What is Mehul Colours IPO Price Band?
The price band is ₹68 to ₹72 per share.
What is Mehul Colours IPO Lot Size?
The minimum lot size is 1,600 shares, with a ₹1,15,200 application amount at the upper price band.
What is the Mehul Colours IPO Allotment Date?
The allotment date is August 4, 2025.
What is the Mehul Colours IPO Listing Date?
The listing date is August 6, 2025, on BSE SME.
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