Mehul Colours IPO

About Mehul Colours IPO

The IPO of Mehul Colours Ltd comprises a fresh issue of up to 30,08, 000 equity shares. There is no offer for sale in this IPO, which is a 100% book-built issue. The price band is ₹68 to ₹72 and the lot size is 1600. The IPO opens on July 30, 2025 and closes on Aug 1, 2025. The listing date is Aug 6, 2025. The allotment date is Aug 4, 2025. The credit of shares to the demat account will take place on Aug 5, 2025. The initiation of refunds will take place on Aug 5, 2025.

The company is engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. In addition to manufacturing masterbatches, Mehul Colours Ltd is also engaged in the sale of pigments, which are blended by it to create customised pigment solutions tailored to specific industry and customer requirements.

Objectives of Mehul Colours IPO

• Funding of capital expenditure towards setup of a new manufacturing facility
  
• Funding of working capital requirements
  
• General corporate purpose
  

Industry Outlook

India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers and fertilizers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP.

The Indian chemical industry is currently valued at US$ 220 billion and is expected to reach US$ 300 billion by 2030 and US$ 1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.

On the other hand, The Government of India intends to take the plastic industry from a current level of ₹ 3 lakh crore (US$ 37.8 billion) of economic activity to ₹10 lakh crore (US$ 126 billion) in 4-5 years.

Company Information

Incorporated in 1995, Mehul Colours Ltd is primarily engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. Masterbatches are concentrated mixtures of pigments and additives that are uniformly dispersed in polymer carriers, facilitating the effective integration of colour and performance-enhancing properties into plastic products.

In addition to manufacturing masterbatches, the company is also engaged in the sale of pigments, which are blended by it to create customised pigment solutions tailored to specific industry and customer requirements. Pigments are solid colourants in fine particle form that provide colour to plastic products.

Strengths of Mehul Colours Ltd

• In-house manufacturing facilities with integrated testing & R&D capabilities
• Well diversified customer base spread across various industries & geography
• Long term relationship with the customers
• Experienced promoters with industry expertise

Risks of Mehul Colours IPO

• Dependence on masterbatches as key revenue driver poses business risk
• Reliance on key customers without binding agreements
• Lack of long-term supply agreements and volatility in input costs may affect business performance
• Failure to meet quality requirements may lead to order cancellations and liability
• Business operations depend on leased properties; non-renewal or disputes may impact performance

Anchor Investor Bidding Date

Anchor portion of the IPO will open for bidding on 29th July 2025.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Bigshare Services Pvt Ltd
• Book Running Lead Manager: Seren Capital Private Ltd

Business Model

The product line of Mehul Colours Ltd includes colour masterbatches, additive masterbatches, special effect masterbatches and filler masterbatches to meet specific functional and aesthetic needs in plastic manufacturing. Colour masterbatches ensure uniform and consistent colouration across plastic products. Additive masterbatches enhance the durability, functionality and processability of plastics by imparting essential properties such as UV protection, slip resistance, tackiness, flame retardancy, impact strength and improved extrusion capabilities.

These include UV Stabilisers, Slip/Anti-block agents, PIB Masterbatch, Flame Retardants, Impact Modifiers and PPA Masterbatch. Special effect masterbatches, offering finishes like pearl, metallic, sparkle, glitter, fluorescent and wood effects, alter the visual and tactile characteristics of plastics. Filler masterbatches, primarily composed of calcium carbonate (CaCO₃), talc, or other mineral fillers, are used to enhance rigidity and processing efficiency

Company Growth Trajectory

The revenue from operations of Mehul Colours Ltd grew from ₹21.1792 crores in FY 23 to ₹22.8220 crores in FY 25. Its EBITDA margin grew from 19.72% in FY 23 to 30.17% in FY 25, while PAT margin grew from 13.88% in FY 23 to 24.11% in FY 25. In-house manufacturing facilities coupled with a well-diversified customer base has helped the company grow over the years.

Market Position

Mehul Colours Ltd was incorporated in 1995. In Fiscal 2025, the company supplied its masterbatches to over 500+ customers spanning a broad array of industries, including stationery, plastic household products, plastic toys, agricultural tools, pipes and fittings, packaging materials, wires & cables, electrical switches & accessories, sheets and various other plastic products. Its manufacturing operations are carried out at two production facilities within the Tungareshwar Industrial Estate, Sativali, Vasai East, Palghar, Mumbai, Maharashtra.

For the fiscal year ended 2025, the company generated 93.17% of its total revenue from 16 states and 2 Union Territories in India, with key markets in Maharashtra, Gujarat, Dadra & Nagar Haveli and Kerala and the remaining 6.83% of its revenue were from exports to countries such as Canada, Jordan, Qatar and Thailand.

How to Check Allotment Status of Mehul Colours IPO?

1. Visit the Registrar’s Website

• Visit the official website of Bigshare Services Pvt Ltd
• Choose IPO Allotment Status from ‘Services’
• Click on any one of the servers
• Choose ‘Company Name’ from dropdown
• Enter either your application number, CAF number or beneficiary ID
• Enter captcha and click on ‘Submit’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

How to Apply for Mehul Colours IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.