Mehul Colours IPO: GMP, Analysis, And Price

Mehul Colours IPO - Company Analysis

Mehul Colours IPO under the SME IPO category is a bookbuilding of Rs. 21.66 Cr by Mehul Colours & Masterbatches Pvt. Ltd, which was incorporated in 1995 and began producing and exporting masterbatches in India.

The company provides white, black, color, and additive masterbatches to meet the needs of different applications in plastics, rubbers, and elastomers.

Products:

Pigments: Used in a variety of industries for uniform hue, stability, and resistance in plastics.

Masterbatches: Give plastic products better properties including flame retardancy, UV resistance, and anti-static behavior, along with a uniform color.

 

Mehul Colours IPO Details

The Mehul Colours IPO date is on 30 July 2025, and its initial public offering will end on 01 Aug with IPO allotment on Aug 04, refund initiation on Aug 05.

The Rs. 21.66 Crore new SME IPO comprises a wholly fresh issue of 30.08 lac Shares.

The Mehul Colours IPO listing date (expected) might be on Wednesday, Aug 06, 2025, and listing at the BSE and SME.

IPO Timetable (Tentative)

Events	Date
IPO Opening Date	Jul 30, 2025
IPO Closing Date	Aug 01, 2025
IPO Allotment Date	Aug 04, 2025
Refund Initiation	Aug 05, 2025
IPO Listing Date	Aug 06, 2025

 

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Company Financials

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	18.95	13.87	10.82
Total Revenue	23.71	22.65	21.37
PAT	5.50	3.22	2.94
EBITDA	6.88	3.97	4.18
Net Worth	17.06	11.56	8.36
Reserves & Surplus	9.52	11.27	8.07
Borrowings	-	0.36	-

 

 

Cash Flows

(Amount in lac)

Net Cash Flow in Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	190.83	209.16	467.23
Net Cash Flow Investing Activities	(229.80)	(141.54)	(327.51)
Net Cash Flow Financing Activities	(39.05)	33.42	(40.75)

 

Revenue Bifurcation

Domestic Revenue Bifurcation

Country-wise Revenue Bifurcation

Industry-wise Revenue Bifurcation

(Source: RHP)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing of capital projects for the establishment of a new manufacturing plant.

• Supplying working capital needs.

• General corporate purposes.

 

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Listed Peers of Mehul Colours Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Polylink Polymers (India) Limited	5	0.96	28
Deep Polymers Limited	10	2.13	25.68

 

Evaluation

The Mehul Colours IPO price is Rs. 68 to Rs. 72 for each Share.

Evaluation of P/E Ratio

Considering the FY ended on 31 Mar 2025 with an EPS of Rs. 7.30 from the last year, the resulting P/E ratio is 9.86x (taking the upper price). When compared with the industry’s average P/E of 26.62x, it indicates an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors.

Explore the Repono IPO.

IPO's Strengths

• Internal manufacturing plants with combined R&D and testing capabilities.

• A diverse clientele that is dispersed throughout different sectors and regions.

• Enduring connection with the clients.

• Promoters with industry experience and experience.

 

 

IPO’s Weaknesses

• Price fluctuations for raw materials can have an impact on margins and the company's profitability.

• A small number of clients account for a large amount of revenue; the loss of any important client could have a big effect on finances.

• Exposure to import/export activities may result in earnings being impacted by currency changes.

• Liquidity stress may result from a high reliance on receivables and inventory levels.

• The fiercely competitive and regulated masterbatches and pigments industry may have an impact on market share or operating expenses.

 

Mehul Colours IPO GMP

Mehul Colours IPO GMP (grey market premium) is Rs. 0 as of 28 Jul 2025 at the time of writing this information. Hence, the Mehul Colours IPO listing price (estimated) might be Rs. 72 (upper price + current GMP).

Mehul Colours IPO Summary

The IPO has a market maker portion size of 1,52,000 Shares (Rs. 1.09 Cr).

IPO Opening & Closing Date	30 Jul, 2025 to 01 Aug, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 68 to Rs. 72  per Share.
Lot Size	1600 Shares
Issue Size	30,08,000 Shares (Rs. 21.66 Cr)
Offer for Sale	-
Fresh Issue	30,08,000 Shares (Rs. 21.66 Cr)
Listing at	BSE, SME
Issue Type	Bookbuilding Issue
Registrar	Bigshare Services Pvt Ltd.

 

 

IPO Lot Details 

Retail investors can invest in a minimum and maximum of 2 Lots (3200 Shares) for Rs. 2,30,400 and in multiples thereof, while for HNI investors, the minimum Lot is 3 (4800 Shares) for Rs. 3,45,600.

Minimum Lot Investment (Retail)	2 Lots
Maximum Lot Investment (Retail)	2 Lots
HNI (Min)	3 Lots

 

IPO Reservation (% of Net Issue)

Institutional’s Portion	47.39%
Retail’s Portion	33.30%
Non-Institutional Portion	14.26%

 

Promoters And Management of Mehul Colours Ltd.

• Mehul Pravinchandra Joshi

• Bhakti Mehul Joshi.

Pre-Issue Promoter Shareholding	96.86%
Post-Issue Promoter Shareholding	-

 

IPO Lead Managers

• Seren Capital Private Limited.

 

 

Dividend Policy

The company has not paid a dividend during the last three financial years.

 

Conclusion

In comparison to its industry peers, Mehul Colours IPO offers a Rs. 21.66 Cr SME issue at a P/E of only 9.86x, indicating an attractive valuation. From FY2023 to FY2025, the company's overall revenue and profitability increased steadily. 

Future potential is increased by its extensive masterbatch product portfolio, devoted customer base, and expansion goals. However, it is important to keep an eye on the hazards associated with client concentration and raw material dependency.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.