The Mehul Colours IPO is set to open for subscription from July 30 to August 1, 2025, with a price band of ₹68 to ₹72 per share, aiming to raise approximately ₹21.66 crore through a fresh issue of 30.08 lakh shares. Incorporated in 1995, Mehul Colours specializes in manufacturing masterbatches and pigments used to enhance color and functional properties in plastic products. The company serves diverse industries including packaging, agriculture, electrical, and consumer goods. It operates two manufacturing units in Vasai, Mumbai, with a total production capacity of 1.28 million kg annually and an R&D center focused on quality and innovation. The Mehul Colours IPO reflects steady business fundamentals and sector potential.
₹10
₹72
₹85.00
Expert Opinions
The Mehul Colours IPO is receiving favorable market sentiment due to its robust financial performance and steady growth in the specialty plastics segment. The company’s strengths lie in its established presence in masterbatch manufacturing, a diversified client base across packaging, agriculture, and consumer goods, and focused R&D for quality enhancement. Financially, Mehul Colours reported an impressive Return on Equity (ROE) of 38.46%, a strong Return on Capital Employed (ROCE) of 43.53%, and a healthy Net Asset Value (NAV) of ₹22.62 in FY 2025, underlining efficient capital use and profitability.
However, challenges include raw material price volatility, competition from larger players, and sector cyclicality. From a long-term perspective, the Mehul Colours IPO presents a compelling investment opportunity for investors seeking steady growth in the growing plastics additives and colorants space with a company demonstrating operational resilience and innovation capacity.
Investor Considerations
The Mehul Colours IPO presents a company with solid performance and strong financial fundamentals, reporting FY 2025 revenue of ₹23.71 crore and a significant profit after tax increase to ₹5.50 crore. The company operates in the plastic additives and masterbatch manufacturing sector, which is poised for growth driven by rising demand across packaging, agriculture, and consumer goods industries.
Valuation metrics of the FY 2025 Mehul Colours IPO include a Price to Book Value of 4.70, a healthy PAT margin of 24.11%, and an EBITDA margin of 30.17%, reflecting operational efficiency and profitability. Growth prospects hinge on capacity expansion and continued R&D for product innovation. Key risks involve raw material price volatility, competitive pressures, and sector cyclicality. The IPO is better suited for long-term investors seeking steady capital appreciation with a tolerance for market fluctuations, while short-term investors should carefully assess sector risks before investing.
| Date | GMP | Trend |
|---|---|---|
| 05 Aug 2025 11.39 | ₹10 | Up |
| 04 Aug 2025 11.49 | ₹5 | --- |
| 02 Aug 2025 20.10 | ₹5 | Up |
| 01 Aug 2025 11.29 | ₹00 | --- |
| 31 Jul 2025 11.46 | ₹00 | --- |
| 30 Jul 2025 11.04 | ₹00 | --- |
| 29 Jul 2025 11.24 | ₹00 | --- |
| 28 Jul 2025 11.13 | ₹00 | --- |
| 25 Jul 2025 10.45 | ₹00 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Mehul Colours IPO’s listing performance. With a final GMP of ₹10, it projected a premium of 13.89% over the issue price of ₹72. The stock listed at ₹85.00, delivering a gain of 18.06%. This resulted in a small prediction error of 4.17%, where the GMP correctly signaled a positive listing and slightly underestimated the actual gain, reflecting fair reliability in this case.
Mehul Colours IPO Current GMP is ₹10.
Mehul Colours IPO Expected Returns is 13.89%.
Mehul Colours IPO estimated listing price is ₹82.