The initial public offer (IPO) of Mehul Colours received bids for 1,61,60,000 shares as against 21,53,600 shares on offer. The issue was subscribed 7.50 times.
Qualified Institutional Buyers (QIBs) bid for 77,34,400 shares, Non-Institutional Investors (NIIs) for 48,32,000 shares, while individual investors (IND category bidding for 2 lots) placed bids for 35,93,600 shares.
The issue opened for bidding on 30 July 2025 and it closed on 1 August 2025. The price band of the IPO was set at Rs 68 to 72 per share. The equity shares will list on BSE's SME platform.
The IPO comprised fresh issue of 30,08,000 shares. The company intends to utilize the net proceeds for funding of capital expenditure towards setup of a new manufacturing facility, funding of working capital requirements and general corporate purpose.
Ahead of the IPO, Mehul Colours on 29 July 2025, raised Rs 6.15 crore from anchor investors. The board allotted 8.54 lakh shares at Rs 72 per share to 5 anchor investor.
Mehul Colours specializes in the manufacturing of masterbatches, which are key to the plastics industry for adding color and enhancing the functional properties of plastic products. These masterbatches consist of concentrated pigments and additives that are evenly mixed with polymer carriers, enabling the integration of both color and functional properties into plastic items. During the manufacturing process, they ensure even pigment distribution in the plastic resin, avoiding inconsistencies like uneven patches. Masterbatches also improve the visual appearance and provide additional features such as UV resistance, flame retardancy, and antistatic properties. In addition, the company produces and sells customized pigment solutions. These pigments are fine, solid colorants that are blended to meet specific needs, ensuring the right color and performance characteristics tailored to various industry and customer demands. As of 30 June 2025, the company had a total of 32 permanent employees.
The company recorded revenue from operations of Rs 22.82 crore and net profit of Rs 5.50 crore for the period ended 31 March 2025.