Mehul Colours IPO GMP, Analysis, And Price

Mehul Colours IPO: GMP, Analysis, And Price

The Indian SME IPO space continues to thrive with a fresh entry — Mehul Colours Limited. A strong player in the pigment and masterbatch manufacturing space, the company is all set to raise capital from the public market via the BSE SME platform. This IPO is attracting attention not only due to the company’s consistent financial growth but also because of its niche position in the plastic colourant industry. Many investors are keeping an eye on the Mehul Colours IPO GMP for early indicators of listing sentiment.

Mehul Colours IPO GMP

Let’s dive deep into the Mehul Colours IPO with a detailed look at its GMP, price band, business fundamentals, and whether it’s a worthy pick for your portfolio.

About Mehul Colours Limited

Incorporated in 1995, Mehul Colours Ltd. has spent nearly three decades establishing itself in the colourant and additive masterbatch market. Based out of Mumbai, the company manufactures a range of plastic colouring solutions like:

• Colour masterbatches (customized and standard)

• Additive masterbatches (UV stabilizers, flame retardants, antistatics)

• Specialty effect masterbatches and filler masterbatches

Serving over 500 clients, the company supplies products to multiple sectors — packaging, consumer goods, toys, electricals, and agriculture. Mehul Colours operates two manufacturing facilities with a combined annual capacity of over 12 lakh kilograms and has its own in-house R&D setup.

Mehul Colours IPO Price Details

Here’s a quick snapshot of the IPO structure:

• IPO Opening Date: July 30, 2025

• IPO Closing Date: August 1, 2025

• Price Band: ₹68 — ₹72 per share

• Face Value: ₹10 per share

• Lot Size: 1,600 shares

• Minimum Investment (Retail): ₹2.17 lakh (2 lots)

• Issue Size: ₹21.66 crore (entirely fresh issue)

• Listing Platform: BSE SME

• Listing Date: August 6, 2025

Funds raised will be used for working capital, plant upgradation, and general corporate purposes. Investors have been closely tracking the Mehul Colours IPO GMP to gauge demand and short-term sentiment.

Grey Market Premium (GMP) Update

As of August 1, 2025, the Mehul Colours IPO GMP stands at ₹0. That’s right — there is currently no premium or discount in the grey market. While this might raise concerns among short-term traders looking for listing gains, it’s not uncommon for SME IPOs to trade flat in unofficial markets before a sudden pickup in demand.

Note: The Mehul Colours IPO GMP may change rapidly in the final hours of the bidding window, depending on HNI and retail participation levels.

Financial Analysis

Key Financial Highlights

Particulars (₹ in Crores) FY 2023 FY 2024 FY 2025 (Est.)Revenue21.322.623.7 EBITDA3.94.26.8 PAT (Net Profit)2.93.25.5 Net Worth11.514.717.0 ROE38.4% — — EPS (Post-Issue)₹5.20 — —

With steady revenue growth and a debt-free balance sheet, Mehul Colours stands out among SME peers. If the fundamentals remain strong and if the Mehul Colours IPO GMP improves, the IPO could surprise on listing day.

Strengths vs. Risks Strengths

• Strong brand recall in the plastic colourant industry

• Diversified client base with repeat orders

• Healthy financials with consistent profitability

• Debt-free balance sheet and efficient cost management

• In-house R&D and manufacturing capabilities

Risks

• Highly competitive and fragmented industry

• Dependency on raw material prices (which can affect margins)

• High working capital requirements

• SME listing implies limited liquidity and less regulatory scrutiny compared to mainboard IPOs

Should You Subscribe?

From a valuation standpoint, the IPO is attractively priced at a P/E of around 13.8x, which is considered reasonable for a consistently profitable SME.

However, the Mehul Colours IPO GMP is currently neutral. This might discourage short-term investors expecting strong listing gains, but fundamentals could change that narrative closer to listing.

If you are a long-term investor, Mehul Colours stands out as a fundamentally solid company in a niche space. With expansion plans, a strong client base, and improving margins, it has the potential to create long-term shareholder value.

For short-term gains, keeping a close eye on the Mehul Colours IPO GMP in the final bidding hours will help you make a more informed decision.

Final Verdict

The Mehul Colours IPO GMP might not be exciting right now, but don’t overlook the company’s strong financial base and industry potential. For investors with a medium-to-long-term outlook, this IPO can offer good returns beyond the listing day.

As always, use the Mehul Colours IPO GMP only as one of several indicators, and not the sole reason to invest.
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