India’s specialty chemicals and plastics industries are witnessing strong growth, driven by increasing industrial demand, infrastructure development, and a strong manufacturing push. Companies catering to these sectors, particularly in the production of essential raw materials like masterbatches and pigments, are well-positioned for expansion. In this dynamic market, Mehul Colours Limited, a key player in manufacturing masterbatches and pigments, is launching its Initial Public Offering (IPO) on July 30, 2025. The IPO offers investors an opportunity to engage with a company set to capitalise on the rising demand in the plastics and allied industries.
This article provides a comprehensive overview of the Mehul Colours IPO details, offering key insights for potential investors.
About Mehul Colours Ltd.
Mehul Colours Ltd. (MCL), established in 1995, is a Mumbai-based manufacturer specialising in masterbatches and pigments crucial for the plastics industry. These concentrated blends impart color and enhance properties like UV resistance and flame retardancy in plastic products.
The company operates two manufacturing facilities in Tungareshwar Industrial Estate, Vasai East, Mumbai, with a combined annual capacity of 1,284,000 kg. Each facility spans 3,200 sq. ft. of built-up area. As of June 30, 2025, Mehul Colours had 32 permanent employees.
Mehul Colours highlights several competitive strengths, including in-house manufacturing facilities with integrated testing and R&D capabilities, a well-diversified customer base across various industries and geographies, long-term relationships with customers, and experienced promoters with deep industry expertise.
Mehul Colours Ltd. IPO Details
The Mehul Colours IPO is a book-building issue aiming to raise ₹21.66 crore. This entire issue is a fresh issuance of 30.08 lakh equity shares. The Mehul Colours IPO price band has been set at ₹68 to ₹72 per share, with a face value of ₹10 per share. The issue will be listed on the BSE SME platform.
Important IPO Timeline
| Event | Date |
| IPO Open Date | Wed, Jul 30, 2025 |
| IPO Close Date | Fri, Aug 1, 2025 |
| Tentative Allotment | Mon, Aug 4, 2025 |
| Initiation of Refunds | Tue, Aug 5, 2025 |
| Credit of Shares to Demat | Tue, Aug 5, 2025 |
| Tentative Listing Date | Wed, Aug 6, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on Aug 1, 2025 |
Key IPO Details
| Particulars | Details |
| Face Value | ₹10 per share |
| Issue Price Band | ₹68 to ₹72 per share |
| Lot Size | 1,600 Shares |
| Sale Type | Fresh Capital |
| Total Issue Size | 30,08,000 shares (aggregating up to ₹21.66 Cr) |
| Reserved for Market Maker | 1,52,000 shares (aggregating up to ₹1.09 Cr) |
| Net Offered to Public | 28,56,000 shares (aggregating up to ₹20.56 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE SME |
| Share Holding
Pre- Issue |
75,41,040 shares |
| Share Holding Post Issue | 1,05,49,040 shares |
Lot Size of Mehul Colours Ltd. IPO
| Application | Lots | Shares | Amount |
| Individual investors (Retail) (Min) | 2 | 3,200 | ₹2,30,400 |
| Individual investors (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 |
Mehul Colours Ltd. Financials
Mehul Colours Ltd. has demonstrated consistent financial growth. The company’s total income increased from ₹21.37 crore in FY23 to ₹22.66 crore in FY24, and further to ₹23.71 crore in FY25. Concurrently, the Profit After Tax (PAT) has risen from ₹2.94 crore in FY23 to ₹3.22 crore in FY24, and then significantly to ₹5.50 crore in FY25.
Key Performance Indicators (as of Mar 31, 2025)
- Market Capitalisation: ₹75.95 Cr
- ROE: 38.46%
- ROCE: 43.53%
- RoNW: 32.26%
- PAT Margin: 24.11%
- EBITDA Margin: 30.17%
- Price to Book Value: 4.70
Company Financial Snapshot
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets (₹ Cr) | 18.95 | 14 | 10.82 |
| Revenue (₹ Cr) | 23.71 | 23 | 21.37 |
| Profit After Tax (₹ Cr) | 5.5 | 3 | 2.94 |
| EBITDA (₹ Cr) | 6.88 | 4 | 3.97 |
| Net Worth (₹ Cr) | 17.06 | 12 | 8.36 |
| Reserves and Surplus (₹ Cr) | 9.52 | 11.27 | 8.07 |
| Total Borrowing (₹ Cr) | – | 0.36 | – |
Mehul Colours Ltd.: Industry Outlook
- Global growth is projected at 3.3% in 2025 and 2026, with inflation expected to decrease to 4.2% in 2025.
- India’s chemical industry is valued at $220 billion and is expected to grow to $300 billion by 2030.
- India is the 6th largest global producer of chemicals and ranks 14th in chemical exports.
- India is a significant player in agrochemicals, contributing 16-18% of global production of dyestuffs.
- Plastic exports are expected to reach $25 billion by 2027, boosted by government initiatives.
Use of IPO Proceeds
The net proceeds from the fresh issue component of the Mehul Colours IPO are primarily intended for:
| S.No. | Objects of the Issue | Expected Amount
(₹ Crores) |
| 1 | Funding of capital expenditure towards the setup of a new manufacturing facility | 15 |
| 2 | Funding of Working Capital Requirements | 4 |
| 3 | General Corporate Purpose | – |
Mehul Colours Ltd. IPO Peer Comparison
Mehul Colours Ltd. operates in the competitive masterbatch and pigment manufacturing landscape. Key peers in the broader industry include Polylink Polymers (India) Limited and Deep Polymers Limited. These comparisons offer insights into industry trends, market positioning, and competitive dynamics.
Conclusion
The upcoming Mehul Colours Ltd. IPO offers a compelling opportunity for investors interested in India’s expanding specialty chemicals and plastics sectors. With its focus on manufacturing essential masterbatches and pigments, the company is well-positioned to benefit from the increasing industrial demand.
Mehul Colours Ltd.’s consistent financial performance, combined with a favourable industry outlook driven by industrial growth, government support, and export potential, positions it for continued expansion. Potential investors should carefully evaluate the company’s business model, financial health, and the broader competitive landscape.
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