Mehul Colours Limited IPO

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Incorporated in 1995, the company is primarily engaged in the manufacturing of masterbatches, which are used in the plastics industry to add colour and enhance the functional properties of plastic products. Masterbatches consist of concentrated pigments and additives that ensure uniform colour distribution and improve product features such as UV resistance, flame retardancy, and anti-static behaviour.

In addition to masterbatches, the company is also involved in the customized blending and sale of pigments, catering to specific industry requirements. In FY 2025, revenue from masterbatches and pigments contributed 84.17% and 15.83%, respectively, to total operations.

Product Portfolio

The company offers a diverse product line including:

a) Colour Masterbatches – For consistent colouration
b) Additive Masterbatches – For UV protection, slip resistance, flame retardancy, etc.
c) Special Effect Masterbatches – For visual and tactile enhancements (e.g., pearl, metallic, glitter)
d) Filler Masterbatches – For rigidity and processing efficiency, using CaCO₃, talc, etc.

Manufacturing Infrastructure

The company operates two manufacturing facilities at Tungareshwar Industrial Estate, Vasai East, Palghar (Maharashtra). Plant 1 (Units 29–32) has an annual capacity of 10,56,000 kg, while Plant 2 (Units 12–15) has a capacity of 2,28,000 kg, with both facilities covering 3,200 sq. ft. each. Plant 2 also houses a dedicated R&D and testing centre to ensure quality control and product development aligned with industry standards.

Market Presence

In FY 2025, the company served 500+ customers across industries such as Stationery, household products, toys, agriculture, pipes & fittings and Packaging, cables, electrical components, and plastic sheets

The company’s products support various processing methods: injection moulding, blow moulding, roto moulding, extrusion, PET, and PVC processing.

a) Domestic Revenue: 93.17% from 16 states & 2 UTs (notably Maharashtra, Gujarat, Dadra & Nagar Haveli, and Kerala)
b) Exports: 6.83% to countries like Canada, Jordan, Qatar, and Thailand

Competitive Strengths

i) In-house Manufacturing with R&D Capabilities
Fully equipped production units with integrated testing and R&D labs for custom product development and quality assurance.

ii) Diversified Product and Customer Base
Wide product range catering to varied industries and applications, serving over 500 customers.

iii) Strong Market Reach
Well-established presence across India and growing international footprint in several key global markets.

iv) Long-Term Client Relationships
Sustained customer engagement over multiple years, aided by a proactive sales and marketing team.

v) Experienced Promoters and Industry Insight
Promoters with deep domain knowledge and leadership experience ensure the company remains agile and growth-oriented.

Objects of the Mehul Colours Limited IPO:

Company intends to utilize the proceeds of the net issue to meet the following objects: 1. Funding of capital expenditure towards setup of a new manufacturing facility (₹14.63 cr) 2. Funding of Working Capital Requirements (₹ 4 cr) 3. General Corporate Purpose

Mehul Colours Limited IPO Details:

Open Date: Jul 30 2025
Close Date: Aug 01 2025
Total Shares: 30,08,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 21.66 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 68-72 Per Equity Share
Listing At: BSE SME

Promoters And Management:

1. Mehul Pravinchandra Joshi is the Promoter and Chairman & Managing Director of the Company and has been a member of the Board since 2001. He holds a Bachelor of Commerce degree from the University of Mumbai (1997) and a Diploma in Plastic Engineering from Shri Bhagubhai Mafatlal Polytechnic, Maharashtra (1998). With over 25 years of experience in the pigment and dyes industry, he possesses deep expertise in the manufacturing of colour concentrates using both conventional and universal carrier systems. 2. Bhakti Mehul Joshi is the Promoter and Whole-Time Director of the Company. She earned her Bachelor of Commerce degree from the University of Mumbai in 2003 and has been on the Board since 2009. With 15 years of experience in finance, she is primarily responsible for managing the finance operations of the Company. 3. Hiral Rasikbhai Joshi serves as a Non-Executive Director of the Company. He holds a Bachelor of Commerce degree from the University of Mumbai (1999). With over 25 years of experience in the real estate sector, he specializes in offering end-to-end solutions for real estate investments, including consulting and management of residential, retail, and commercial properties. He operates under his sole proprietorship, Hiral Joshi and Associates.

Financials of Mehul Colours Limited IPO:

To be updated shortly

Comparison With Peers:

To be updated shortly

Lead Manager of Mehul Colours Limited IPO:

  1. Seren Capital Private Limited

Registrar of Mehul Colours Limited IPO:

  1. Bigshare Services Private Limited

Discussion on Mehul Colours Limited IPO:

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