True Colors IPO Opens Tommorrow; To Raise ₹127.96 Crore at ₹181-191 Price Band 

Mumbai, 22 September 2025: True Colors Limited, a Surat-based importer and distributor of digital textile printers, will launch its SME initial public offering (IPO) tomorrow, 23 September 2025. The issue, priced between ₹181 and ₹191 per share, aims to raise up to ₹127.96 crore at the upper band. True Colors IPO bidding window will remain open until 25 September 2025, while the anchor book opened today, 22 September 2025.

Incorporated in October 2021 and headquartered in Surat, Gujarat, True Colors operates across three verticals—import and distribution of digital printers, in-house manufacturing of sublimation paper, and digital printing services. The company has tie-ups with international brands such as Konica Minolta, Hopetech, iTTEN, PENGDA and Skyjet, enabling it to serve a wide base of exporters, manufacturers, designers and entrepreneurs in India’s textile hubs.

Issue Structure of True Colors IPO Worth ₹127.96 Crore

The IPO comprises a fresh issue of ~56.99 lakh equity shares and an offer for sale (OFS) of 10 lakh equity shares by promoters, taking the total issue size to 66.99 lakh shares. Proceeds from the fresh issue will be used for:

• ₹48.90 crore – funding working capital requirements
• ₹40.40 crore – repayment or prepayment of borrowings
• Balance – general corporate purposes

The company clarified it will not receive any funds from the OFS portion. Post-issue, equity shares are proposed to be listed on the BSE SME Platform.

Revenue Growth of 190% in Two Years Fuels IPO Launch

True Colors has posted rapid financial expansion in recent years. Revenue surged from ₹80.66 crore in FY23 to ₹160.08 crore in FY24, a 99% year-on-year (y-o-y) increase, and further to ₹233.65 crore in FY25, a 46% jump over the previous year. Profit after tax also expanded sharply, from ₹3.92 crore in FY23 to ₹24.69 crore in FY25, signalling a 529% rise over two years.

Net worth climbed from ₹6.37 crore in FY23 to ₹55.45 crore in FY25, underlining improved balance sheet strength. This performance reflects rising demand for digital textile printing solutions and effective scaling of operations.

Market Impact: Anchor Investment Opens Ahead of Public Subscription

The IPO process was triggered with the opening of the anchor investor bidding on 22 September 2025, designed to provide early momentum. The combination of a ₹127.96 crore issue size and a price band capped at ₹191 per share sets the stage for SME market participation. By structuring the offer with both a fresh issue and an OFS, True Colors balances capital infusion with partial promoter offloading.

Risk Factors: Debt, Forex Exposure and Customer Dependence

Despite strong growth, the company faces challenges. Its working capital-intensive model requires high inventory and receivable levels, straining liquidity. Heavy reliance on imports exposes the business to foreign exchange fluctuations, while a concentration of large customers makes revenue streams vulnerable. Furthermore, despite IPO funds earmarked for repayment, debt exposure remains notable.

True Colors’ IPO, opening tomorrow, brings a ₹127.96 crore issue to the SME market, backed by rapid revenue growth and expansion in digital textile printing. While the offering provides fresh capital for debt repayment and working capital, investors should note the company’s exposure to forex risks, customer concentration, and liquidity requirements as disclosed in its filings.

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