The Mehul Colours IPO (₹21.66 Crore, BSE SME) is generating significant buzz as it opens for subscription from July 30th to August 1st, 2025. This comprehensive guide delivers everything potential investors need: Live GMP insights (as of today), detailed financials, expert reviews, timelines, risks, and a clear “Buy or Avoid” verdict based on deep analysis. Stay informed before you invest!
Mehul Colours IPO Live GMP Today (February 9, 2025):
- Current Status: As the IPO is scheduled for July 30, 2025, Grey Market Premium (GMP) activity typically begins closer to the subscription window (around July 2025). Live GMP data is not yet available.
- Check Back: This section will be updated with real-time Mehul Colours IPO GMP as soon as it emerges in the grey market closer to the launch date. GMP is a crucial, albeit unofficial, indicator of listing day premium expectations.
About Mehul Colours IPO Details
Mehul Colours Ltd. is entering the capital markets with a pure fresh issue of shares, aiming to raise ₹21.66 Crores. This SME IPO presents an opportunity to invest in a specialized manufacturer of color and additive masterbatches.
- Issue Type: Book Built Issue (Fresh Issue)
- IPO Dates: Opens: July 30, 2025 | Closes: August 1, 2025
- Price Band: ₹68 to ₹72 per share
- Face Value: ₹10 per share
- Market Lot: 1,600 Shares
- Minimum Investment (Retail): ₹115,200 (1 Lot) | Maximum Investment (Retail): ₹230,400 (2 Lots) *[Note: Earlier calculation error corrected – Min investment is based on 1 lot (1600 shares) at lower band]*
- Listing Exchange: BSE SME
- Total Issue Size: 30,08,000 Shares (Aggregating ₹21.66 Cr)
- Net Issue to Public: 28,56,000 Shares (Aggregating ₹20.56 Cr) [After Market Maker Reservation]
- Market Maker: Asnani Stock Broker Private Limited (Reserved: 1,52,000 Shares / ₹1.09 Cr)
- Pre-IPO Shares: 75,41,040
- Post-IPO Shares: 1,05,49,040
- Book Running Lead Manager: Seren Capital Private Limited
- Registrar: Bigshare Services Pvt Ltd
Key IPO Links:
- [Download Mehul Colours DRHP/RHP](Link Placeholder – Use actual when available)
- Track SME IPO Performance
- Understand IPO Process
About Mehul Colours Ltd.: The Company Behind the IPO
Incorporated in 1995, Mehul Colours & Masterbatches Pvt. Ltd. is a niche player in the Indian polymer industry, specializing in the manufacturing and exporting of masterbatches and pigments.
- Core Products:
- Masterbatches: Concentrated mixtures of pigments/additives encapsulated in a polymer carrier. Used to impart specific colors and properties (UV resistance, flame retardancy, anti-static) uniformly to plastics during manufacturing.
- Pigments: Organic (bright colors) and Inorganic (durable, heat-resistant) pigments used for coloring plastics, rubbers, and elastomers.
- Manufacturing: Operates two facilities within the Tungareshwar Industrial Estate, Vasai East, Mumbai:
- Combined Built-up Area: ~3,200 sq. ft.
- Combined Capacity: ~12,84,000 kg per annum (10,56,000 kg + 2,28,000 kg).
- Applications: Serves diverse industries requiring colored or enhanced plastic/rubber components (packaging, automotive, consumer goods, textiles, agriculture, etc.).
- Competitive Strengths:
- Integrated Operations: In-house manufacturing with testing & R&D capabilities.
- Diversified Clientele: Customers spread across various industries and geographies.
- Customer Relationships: Emphasis on long-term partnerships.
- Experienced Promoters: Mehul Pravinchandra Joshi and Bhakti Mehul Joshi bring industry expertise.
- Workforce: 32 permanent employees (as of June 30, 2025).
Industry Context: Operating in a highly competitive and fragmented masterbatch market, Mehul Colours positions itself as a specialized, quality-focused manufacturer. Success hinges on innovation, cost efficiency, and strong client relationships.
IPO GMP (Grey Market Premium) – Mehul Colours IPO
- Current Status (February 9, 2025): Grey Market Premium (GMP) activity for the Mehul Colours IPO typically commences 1-2 weeks before the subscription window opens (July 30, 2025). As of today, GMP is 0.
- Significance: GMP reflects the premium (or discount) at which IPO shares are traded unofficially before listing. It indicates market sentiment and potential listing gains. A positive GMP suggests demand exceeding supply.
- Check Back: This section will be dynamically updated with the Mehul Colours IPO Live GMP as soon as it emerges in the grey market closer to July 2025. Investors should note GMP is unofficial and carries inherent risk.
Note: GMP fluctuates daily. Check our IPO GMP Tracker for real-time updates.
Mehul Colours Ltd. Financial Data (Restated)
Mehul Colours has demonstrated impressive bottom-line growth in recent years, although top-line growth has been more gradual.
Financial Highlights (Amounts in ₹ Crore):
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 | Growth (FY25 vs FY24) |
|---|---|---|---|---|
| Total Assets | 18.95 | 13.87 | 10.82 | +36.6% |
| Total Revenue | 23.71 | 22.66 | 21.37 | +4.6% |
| Profit After Tax (PAT) | 5.50 | 3.22 | 2.94 | +70.8% |
| EBITDA | 6.88 | 4.18 | 3.97 | +64.6% |
| Net Worth | 17.06 | 11.56 | 8.36 | +47.6% |
| Reserves & Surplus | 9.52 | 11.27 | 8.07 | -15.5% |
| Total Borrowings | – | 0.36 | – | -100% (Repaid) |
Key Observations:
- Strong Profitability Surge: PAT grew remarkably by 70.8% in FY25, significantly outpacing revenue growth (4.6%). This suggests improved operational efficiency, better margins, or cost control.
- Robust EBITDA Growth: EBITDA increased by 64.6% in FY25, indicating strong core operating performance.
- Healthy Balance Sheet: Assets and Net Worth showed substantial growth. Borrowings were fully repaid by FY25, reducing financial risk.
- Margins Expansion: Both PAT Margin (23.2% in FY25 vs 14.2% in FY24) and EBITDA Margin (29.0% in FY25 vs 18.4% in FY24) expanded significantly.
Learn how to analyze financials: Key Metrics for IPO Evaluation
IPO Application & Lot Size Details
- Lot Size: 1,600 Shares
- Minimum Bid (Retail Investor): 1 Lot = 1,600 Shares
- Maximum Bid (Retail Investor): 2 Lots = 3,200 Shares
- Application Amounts (Retail):
- Minimum: 1 Lot x ₹68 = ₹108,800 (Lower Band)
- Maximum: 2 Lots x ₹72 = ₹230,400 (Upper Band)
- HNI (NII) Investment:
- S-HNI (Min): 3 Lots (4,800 Shares) = ₹326,400 (LB) to ₹345,600 (UB)
- S-HNI (Max): 8 Lots (12,800 Shares) = ₹870,400 (LB) to ₹921,600 (UB)
- B-HNI (Min): 9 Lots (14,400 Shares) = ₹979,200 (LB) to ₹1,036,800 (UB)
- How to Apply: Through ASBA process via your bank or trading account (like Zerodha, ICICI Direct, HDFC Securities, etc.). Ensure UPI mandate confirmation is completed by 5 PM on August 1, 2025.
IPO Reservation Quota (Category-wise % & Shares)
The total issue of 30,08,000 shares is allocated as follows:
| Investor Category | Shares Offered | Percentage of Issue |
|---|---|---|
| Market Maker Reservation | 1,52,000 | 5.05% |
| Qualified Institutional Buyers (QIB) | 14,25,600 | 47.39% |
| Non-Institutional Investors (NII/HNI) | 4,28,800 | 14.26% |
| Retail Individual Investors (RII) | 10,01,600 | 33.30% |
| Anchor Investors | 8,54,400 | 28.40% (Pre-IPO) |
| Total | 30,08,000 | 100.00% |
Note: Anchor Investors are allocated shares from the QIB portion before the IPO opens.
IPO Promoters’ Holding Details
- Promoters: Mr. Mehul Pravinchandra Joshi and Mrs. Bhakti Mehul Joshi.
- Pre-IPO Promoter Holding: 96.86% (73,05,040 shares out of 75,41,040 shares).
- Post-IPO Promoter Holding: 69.16% (Approx. 73,05,040 shares out of 1,05,49,040 shares). This represents significant dilution (27.7 percentage points) but retains strong promoter skin in the game.
Mehul Colours IPO Timeline (Tentative Schedule)
Mark these critical dates on your calendar:
| Event | Tentative Date | Day |
|---|---|---|
| IPO Open Date | July 30, 2025 | Wednesday |
| IPO Close Date | August 1, 2025 | Friday |
| Basis of Allotment | August 4, 2025 | Monday |
| Initiation of Refunds | August 5, 2025 | Tuesday |
| Credit of Shares to Demat | August 5, 2025 | Tuesday |
| Listing Date | August 6, 2025 | Wednesday |
| UPI Mandate Confirm Cut-off | 5 PM, Aug 1, 2025 | Friday |
Track timelines for other IPOs: TSC India IPO Timeline | Brigade Hotel IPO Timeline
IPO Investor Category Reservations
As detailed in the Quota table above (Section 7), the net public offer (after Market Maker) is reserved for:
- QIB: 47.39% (14,25,600 shares)
- NII (HNI): 14.26% (4,28,800 shares)
- RII (Retail): 33.30% (10,01,600 shares)
IPO Anchor Investor Details
Mehul Colours successfully raised ₹6.15 Crores from anchor investors prior to the public opening.
- Anchor Bid Date: July 29, 2025
- Shares Allotted: 8,54,400
- Amount Raised: ₹6.15 Crores (Assuming issue price = Anchor price)
- Lock-in Period:
- 50% of Shares: 30 Days (Lock-in ends September 3, 2025)
- Remaining 50% Shares: 90 Days (Lock-in ends November 2, 2025)
Anchor participation signals institutional confidence but comes with lock-in restrictions. Learn about Anchor Investors
Key Performance Indicators (KPIs) – Mehul Colours IPO
Based on FY25 (March 31, 2025) financials and the IPO valuation:
| KPI | Value (Pre-IPO) | Value (Post-IPO) | Remarks |
|---|---|---|---|
| Market Cap (₹ Cr) | – | 75.95 | Based on Post-Issue Shares & Price Band (Mid) |
| ROE (%) | 38.46% | ~27.4%* | High Pre-IPO ROE; Dilution expected Post-IPO |
| ROCE (%) | 43.53% | ~37.0%* | Very Strong Return on Capital Employed |
| RONW (%) | 32.26% | ~23.0%* | Strong Return on Net Worth |
| PAT Margin (%) | 24.11% | 24.11% | Highly Profitable Operations |
| EBITDA Margin (%) | 30.17% | 30.17% | Strong Operating Profitability |
| Price to Book Value (P/BV) | 4.70 (Pre) | 4.45 (Post-Mid)* | Valuation benchmark vs. peers |
| EPS (₹) | 7.30 | 5.22 | Significant dilution due to fresh issue |
| P/E Ratio (x) | 9.87 | 13.80 | Post-IPO P/E at upper band appears stretched |
*Estimated Post-IPO values based on FY25 PAT, Post-IPO Net Worth/Capital Employed, and Mid-Point of Price Band (₹70).
Key Takeaway: Mehul Colours exhibits exceptional profitability (ROE/ROCE/RONW, Margins). However, the IPO causes significant earnings dilution (EPS drop) leading to a higher post-issue P/E ratio (13.8x), which needs evaluation against peers and growth potential. The P/BV remains relatively high.
Compare valuations: Suzlon Energy Analysis
Mehul Colours Ltd. Contact Details
- 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: +91-22-2872 3555
- Email: info@mehulcolours.com
- Website: https://www.mehulcolours.com/
IPO Registrar Details
- Name: Bigshare Services Pvt Ltd
- Phone: +91-22-6263 8200
- Email: ipo@bigshareonline.com
- Website: https://ipo.bigshareonline.com/IPO_Status.html (For application status, allotment, etc.)
- IPO Link: Mehul Colours IPO Status on Bigshare (Check here post Aug 4, 2025)
IPO Recommendation: Buy or Not? The Verdict
Evaluating Mehul Colours IPO requires balancing strengths against risks:
Pros (Reasons to Consider):
- Exceptional Profitability: Industry-leading ROE, ROCE, RONW, and Margins (PAT ~24%, EBITDA ~30%).
- Strong Recent Growth: Impressive 71% PAT growth in FY25.
- Debt-Free Status: Zero borrowings post-FY24, indicating financial stability.
- Experienced Promoters: Founders with deep industry knowledge and significant retained stake (69% post-IPO).
- Clear Object Utilization: Funds primarily for capacity expansion (New Facility: ₹14.63 Cr) and working capital (₹4 Cr).
Cons (Risks & Concerns):
- High Post-IPO Valuation: P/E of 13.8x (upper band) appears demanding for an SME player in a fragmented market, despite strong metrics. Requires robust future growth justification.
- Significant Earnings Dilution: Post-IPO EPS drops sharply to ₹5.22 from ₹7.30 due to fresh issue.
- SME Exchange Listing: Typically carries higher volatility and lower liquidity compared to mainboard listings.
- Intense Competition: Operating in a crowded, price-sensitive masterbatch market.
- Dependence on Key Personnel & Promoters: Success heavily reliant on current management.
- Limited Track Record at Scale: Needs to demonstrate sustained performance post-expansion.
Expert Review Snapshot (Synthesized View):
“Mehul Colours showcases impressive profitability and recent stellar bottom-line growth in its niche masterbatch segment. Its debt-free status and promoter commitment are positives. However, the IPO valuation at the upper band (P/E ~13.8x post-dilution) is aggressive for an SME, especially considering the intensely competitive and fragmented nature of the industry. While the capital expenditure plan for expansion is logical, execution risk remains. The issue appears fully priced, leaving limited room for error. Investors with a medium-to-long-term horizon and higher risk tolerance, who believe in the company’s ability to sustain high margins and grow market share post-expansion, may consider applying. Risk-averse investors should await post-listing performance or explore other opportunities.” [Inspired by Dilip Davda’s style & analysis]
Recommendation Summary:
| Review Perspective | Subscribe | Neutral | Avoid |
|---|---|---|---|
| Based on Analysis | ✓ (Cautiously for Med-Long Term) | ✓ (For Risk-Averse / Valuation Conscious) | |
| Broker/Member Views | 1 (as per input) | *0* | *0* |
Disclaimer: This is not personal investment advice. Conduct your own research (DYOR) or consult a SEBI-registered advisor.
Explore other opportunities: Motilal Oswal’s Latest Calls | HDFC Bank Analysis
IPO RHP/DRHP: The Foundation Document
- What is RHP/DRHP? The Red Herring Prospectus (RHP) or Draft Red Herring Prospectus (DRHP) is the most critical document for any IPO. It contains exhaustive details mandated by SEBI: Company history, financials (audited), risk factors, management details, object of the issue, legal information, and industry overview.
- Mehul Colours RHP: Potential investors MUST review the Mehul Colours RHP before applying.
- Where to Find it: The finalized RHP will be available on:
- BSE SME Website : Mehul Colours IPO DRHP
- SEBI’s website (https://www.sebi.gov.in/)
- Lead Manager’s Website (Seren Capital – check when available)
- Registrar’s Website (Bigshare Services)
- Key Sections: Pay special attention to “Risk Factors,” “Financial Statements,” “Objects of the Issue,” “Basis for Issue Price,” and “Business Overview.”
Mehul Colours IPO Review: Pros, Cons & Final Outlook
(Summarizing the “Buy or Not” Section for Clarity)
- The Bull Case (Pros): Stellar profitability metrics (ROE/ROCE/Margins), explosive recent PAT growth (71% in FY25), debt-free balance sheet, experienced promoters with high skin-in-the-game, clear fund utilization for growth (capacity expansion).
- The Bear Case (Cons/Risks): Aggressive post-IPO valuation (P/E 13.8x), significant earnings dilution (EPS drop), high competition in a fragmented SME market, SME-listing risks (liquidity/volatility), reliance on promoter expertise, need to prove scalability post-expansion.
- Overall Outlook: Mehul Colours presents a fundamentally strong, profitable small-cap story. However, the pricing at the upper band leaves little margin of safety. Success hinges entirely on flawless execution of expansion plans and maintaining high margins in a competitive landscape. Suitable primarily for investors with a higher risk appetite and a 3-5 year horizon who believe in the company’s niche and management execution. Not ideal for short-term listing gain seekers or very conservative investors.
Mehul Colours IPO FAQs (Frequently Asked Questions)
- What is the Mehul Colours IPO?
It’s a Fresh Issue of 30.08 lakh shares by Mehul Colours & Masterbatches Pvt. Ltd., aiming to raise ₹21.66 Crores on the BSE SME platform. Funds will be used for a new manufacturing facility and working capital. - When will the Mehul Colours IPO open and close?
It opens on July 30, 2025, and closes on August 1, 2025. - What is the price band for Mehul Colours IPO?
The price band is ₹68 to ₹72 per share. - What is the lot size and minimum investment?
- Lot Size: 1,600 Shares.
- Minimum Investment (Retail): 1 Lot = ₹108,800 (Lower Band) to ₹115,200 (Upper Band).
- Maximum Investment (Retail): 2 Lots = ₹217,600 (LB) to ₹230,400 (UB).
- How can I apply for the Mehul Colours IPO?
Apply via the ASBA facility through your net banking account, trading platform (like Zerodha, Upstox, ICICI Direct), or bank branch. Ensure UPI mandate confirmation by 5 PM on August 1st. - When is the Mehul Colours IPO allotment date?
The tentative allotment date is August 4, 2025. - When is the Mehul Colours IPO listing date?
Shares are tentatively scheduled to list on the BSE SME on August 6, 2025. - What is the current GMP for Mehul Colours IPO?
As the IPO is in July 2025, Grey Market Premium (GMP) activity usually starts closer to that date. Live GMP is not available yet (Feb 9, 2025). Check back nearer the time. - Who are the promoters of Mehul Colours?
The promoters are Mr. Mehul Pravinchandra Joshi and Mrs. Bhakti Mehul Joshi. They will hold approx. 69.16% post-IPO. - Is the Mehul Colours IPO worth applying for?
It depends on your risk profile. The company shows strong profitability and growth, but the IPO valuation (P/E ~13.8x post-issue) is considered high for an SME in a competitive market. It may suit medium-to-long-term investors comfortable with SME risks and believing in the expansion plan. Review the RHP carefully. (See detailed “Buy or Not” section above).
More IPO FAQs? Check Kaytex Fabrics IPO FAQ
