August 1, 2025
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Final subscription Tally
| Size Rs. 69.81 Crore LM: Socradamus Capital | ||||
| QIB | NII x | RII x | Total x | Applications |
| 13.54 | 10.91 | 3.56 | 7.98 | 1508 |
| Subscription Review: Not so impressive subscription trend on the last day |
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About Mehul Colours
Mehul Colours & Masterbatches Ltd – Manufacturer of Pigments and Masterbatches
Established in 1995, Mehul Colours & Masterbatches Pvt. Ltd. is engaged in the manufacturing and export of masterbatches, catering to a wide range of applications in plastics, rubbers, and elastomers.
The company’s product portfolio includes:
🔹 White, Black, Colour and Additive Masterbatches
🔹 Organic and Inorganic Pigments
Its masterbatches are polymer-based pigment and additive compounds that provide uniform colour, UV resistance, flame retardancy, and anti-static properties in plastic products. The pigments offered are used across industries, with organic pigments delivering vibrant colours and inorganic pigments ensuring durability and thermal stability.
The company operates from two manufacturing units located at Tungareshwar Industrial Estate, Vasai East (Mumbai), with combined installed capacities of 10,56,000 kg and 2,28,000 kg. Each unit covers a built-up area of 3,200 sq. ft.
As of June 30, 2025, the company employed 32 permanent staff.
Mehul Colours IPO Details
|
Sector: Manufacturing |
|
| IPO opens on | 30 July 2025 |
| IPO closes on | 1 August 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 30,08,000 Shares / Rs 21.66 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 152,000 Shares |
| Net offer to Public | 28,56,000 Shares Rs.20.56 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 68-72 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1600 Shares |
| Listing will at | BSE SME |
How shares are being offered
| Investor Category | Shares Offered |
| Market Maker | 1,52,000 (5.05%) |
| QIB | 14,25,600 (47.39%) |
| NII (HNI) | 4,28,800 (14.26%) |
| Retail | 10,01,600 (33.30%) |
| Total | 30,08,000 (100.00% |
How shares can be applied?
| Application | Lots | Shares | Amount Rs. |
| Retail (Min) | 2 | 3,200 | 2,30,400 |
| 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 |
Who are the Promoters of Mehul Colours IPO?
Mehul Pravinchandra Joshi and Bhakti Mehul Joshi are the promoters of the company. The promoters hold 96.86% of the pre-IPO capital
What are the Objects of Mehul Colours IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+Funding of capital expenditure towards setup of a new manufacturing facility Rs. 14.63 Cr.
+Funding Working Capital Requirement of the Company Rs. 4.00 Cr.
+General Corporate Purpose
Mehul Colours IPO Timetable
Tentative timetable |
|
| IPO opens on | 30 July 2025 |
| IPO Closes on | 1 August 2025 |
| IPO Allotment on | 4 August 2025 |
| Refund Initiation | 5 August 2025 |
| Credit of Shares | 5 August 2025 |
| Listing on | 6 August 2025 |
| Registered Office of the Company 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 Email: info@mehulcolours.com |
| Lead Managers of this IPO Seren Capital Pvt ltd |
| Who is the Registrar to the IPO? Bigshare Services Pvt ltd |
Mehul Colours IPO GMP grey market premium, review, Subscription, allotment, listing estimate
Mehul Colours IPO Financials
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 18.95 | 13.87 | 10.82 |
| Revenue | 23.71 | 22.66 | 21.37 |
| Profit After Tax | 5.5 | 3.22 | 2.94 |
| EBITDA | 6.88 | 4.18 | 3.97 |
| Net Worth | 17.06 | 11.56 | 8.36 |
| Reserves and Surplus | 9.52 | 11.27 | 8.07 |
| Total Borrowing | 0.36 | ||
| Amount in Rs. Crore | |||
Performance Indicators
| KPI | Values |
| ROE | 38.46% |
| ROCE | 43.53% |
| RoNW | 32.26% |
| PAT Margin | 24.11% |
| EBITDA Margin | 30.17% |
| Price to Book Value | 4.7 |
| EPS Post | 5.22 |
| Post PER | 13.8 |
How Mehul Colours IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Mehul Colours | 13.80 | 32.26 |
| Polylink Polymers India Ltd | 28 | 7.13 |
| Deep Polymers Ltd | 25.68 | 5.75 |
# This is only coverage of News related to Grey Market Premium & subject to rates. We do not deal in grey market premium. We do not recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.
Chanakya’s IPO Review – Mehul Colours Limited by Paresh Gordhandas, CA & Research Analyst
Mehul Colours & Masterbatches Ltd – Manufacturer of Masterbatches & Pigments | Reasonably Priced IPO
Mehul Colours & Masterbatches Pvt. Ltd. is engaged in the manufacturing and export of masterbatches, catering to diverse applications across plastics, rubbers, and elastomers industries.
Product Portfolio:
🔹 White, Black, Colour & Additive Masterbatches
🔹 Organic & Inorganic Pigments
The company’s masterbatches are polymer-based compounds designed to deliver uniform colour, UV resistance, flame retardancy, and anti-static properties in plastic products. Its organic pigments offer vibrant coloration, while inorganic pigments provide durability and thermal stability across varied industrial uses.
It operates from two manufacturing facilities at Tungareshwar Industrial Estate, Vasai East (Mumbai), with installed capacities of 10,56,000 kg and 2,28,000 kg. Each unit covers 3,200 sq. ft. of built-up area.
The IPO size of Rs. 21.66 crore is modest. Given that only 313 applications have been received so far, the retail quota can get fully subscribed with just a one-time oversubscription.
Chanakya’s View:
The company has shown consistent growth in revenue and net profit over the last three years. Importantly, there are no signs of profit manipulation ahead of the IPO. The issue is priced at a reasonable valuation. From a fundamental perspective, investors may consider applying to this IPO. However, it is advisable to track the grey market premium for better timing and decision-making.
Quicklinks
Mehul Colours IPO GMP
Mehul Colours IPO review
Mehul Colours & Masterbatches Ltd is engaged in the manufacturing and export of masterbatches and pigments. Its products are used in plastics, rubbers, and elastomers across various industries. The company offers white, black, colour, and additive masterbatches, along with organic and inorganic pigments.
The IPO size is Rs. 21.66 crore, consisting entirely of a fresh issue of 30.08 lakh equity shares.
The price band for Mehul Colours IPO is Rs. 68 to Rs. 72 per share. The minimum lot size for retail investors is 3,200 shares, requiring an investment of Rs. 2,17,600. For HNIs, the minimum application size is 4,800 shares (3 lots), amounting to Rs. 3,45,600.
The company has demonstrated consistent growth in revenue and profitability over the past three years. There are no signs of pre-IPO profit manipulation. The valuation appears reasonable. From a fundamental perspective, investors may consider applying. However, tracking the grey market premium (GMP) before applying is recommended.
