True Colors IPO

About True Colors IPO

The IPO of True Colors Ltd comprises a fresh issue and an offer for sale. The fresh issue consists of up to 57,00,000 equity shares while the offer for sale is up to 10,00,000 equity shares. It’s a 100% book-built issue. The company is engaged in import and distribution of digital textile printers. It also manufacturers and supplies products related to the digital textile industry.

Objectives of True Colors IPO

• Funding working capital requirements of the company
• Repayment/prepayment of all or certain of the borrowings availed by the company
• General corporate purposes

Industry Outlook

The global digital textile printing market size is worth US$ 3.78 billion in 2025, growing at a 13.83% CAGR and is forecast to hit US$ 7.22 billion in 2030. The digital textile printing industry is experiencing a significant transformation driven by technological advancements and sustainability initiatives.

The industry has witnessed substantial innovations in textile printing solutions and equipment capabilities. Major manufacturers have introduced sophisticated solutions that combine high quality with enhanced productivity. For instance, EFI launched its third digital textile printer in 2021, featuring an eight-color configuration and achieving production speeds of 13 linear meters per minute in production mode.

These developments have been particularly significant in addressing the industry's need for both quality and efficiency, with digital textile printing manufacturers focusing on creating solutions that can handle various fabric types while maintaining consistent output quality

Company Information

True Colors Ltd is engaged in the business of import and distribution of digital textile printers and manufacturing and supplying of products related to the digital textile printing industry. The company’s business model includes manufacturing as well as trading that covers the following three key pillars in the digital textile printing industry such as machinery and ink supply, sublimation paper manufacturing and supply and digital textile printing.

Digital textile printing, also known as direct-to-garment (DTG) or digital garment printing, is a modern technique that involves transferring a variety of digital images and designs directly onto textiles and garments using specialised or adapted inkjet technology.

Strengths of True Colors IPO

• Full-fledged digital textile ecosystem
• Nationwide presence and rapid service support
• Reliable customer engagement and recurring revenue
• Advanced manufacturing facility and supply chain control
• Experienced leadership supported by professional management

Risks of True Colors IPO

• No long-term agreements with majority of customers
• Increase in price of raw materials could adversely affect business
• Majority of revenue from trading of Ink and digital printing machine business
• Fluctuation in market trends for digital textile printing
• High working capital requirements

Peer Comparison

True Colors Ltd is engaged in the business of import and distribution of digital textile printers and manufacturing and supplying of products related to the digital textile printing industry. Therefore, there are limited numbers of operators in this industry and therefore there are no listed peers of the company.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Bigshare Services Pvt Ltd
• Book Running Lead Manager: GYR Capital Advisors Private Limited

True Colours Business Model

The business model of True Colors Ltd includes manufacturing as well as trading that covers the following three key pillars in the digital textile printing industry. These include:

• Machinery ink and supply: The company imports and distributes high-quality wide format digital textile inkjet printers from globally recognised brands such as KONICA MINOLTA, HOPETECH, ITTEN, PENGDA and SKYJET.

• Sublimation paper manufacturing and supply: The company has established an in-house sublimation paper manufacturing unit, a critical component in the digital textile printing process.

• Digital textile printing: The company provides digital textile printing for customers who prefer to outsource their printing needs.

The company’s comprehensive product portfolio encompasses various digital textile printers, such as direct belt inkjet printers, double-side inkjet printers, sublimation inkjet printers, heat transfer machines, pigment printers, and DTF (Direct to Film/Fabric) printers.

True colours Company Growth Trajectory

The revenue from operations of True Colors Ltd grew from ₹9.0437 crores in FY 22 to ₹160.0824 crores in FY 24. Its EBITDA margin grew from 7.59% in FY 22 to 9.01% in FY 24. Nationwide presence and rapid service support coupled with reliable customer engagement has helped the company grow over the years.

True Colours Market Position

True Colors Ltd has built a well-distributed presence across India through strategically located regional offices and service hubs in key textile manufacturing centers such as Surat, Amritsar, Panipat, Ludhiana, Delhi, Erode, Mumbai, Tirupur, Kolkata, and Varanasi. This geographic footprint allows it to provide prompt on-site technical assistance, timely delivery of spare parts, and a steady supply of consumables, helping customers minimise production delays and maintain workflow continuity.

How to Check Allotment Status of True Colors 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 National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO bid verification module. You can use it to check the status of True Colors Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for True Colors 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.