True Colors Ltd Files DRHP for IPO
By Ankur Chandra | Published at: Jul 14, 2025 01:07 PM IST
Mumbai, 14 July 2025: True Colors Limited has filed DRHP for its upcoming Initial Public Offering (IPO), aiming to raise fresh capital to support working capital needs, repay existing borrowings, and meet general corporate expenses. The IPO will be listed on the NSE SME platform and will include a combination of fresh equity issuance and an offer for sale.
IPO Combines Fresh Issue and Offer for Sale
The IPO will comprise a fresh issue of 57,00,000 equity shares and an offer for sale (OFS) of 10,00,000 equity shares, both with a face value of ₹10 each. The issue is structured as a book-building IPO and is being managed by GYR Capital Advisors Private Limited, while Bigshare Services Pvt Ltd will serve as the registrar.
True Colors IPO Details
| Component | Equity Shares Offered | Purpose |
|---|---|---|
| Fresh Issue | Up to 57,00,000 | To fund working capital, debt repayment, and general corporate purposes |
| Offer for Sale (Promoters) | Up to 10,00,000 | Partial stake liquidation |
| Total IPO Size | Up to 67,00,000 | Listing on BSE SME |
Reserved Share Allocation Balances Institutional and Retail Participation
The IPO includes structured allocations for different investor categories, with Qualified Institutional Buyers (QIBs) set to receive up to 50% of the net offer, followed by 35% for retail investors and 15% for Non-Institutional Investors (NIIs).
Promoters to Dilute Stake as Company Prepares for Market Debut
The company’s promoters – Ashish Kumar Durlbhbhai Mulani, Sanjay Raghubhai Desai, Sagarkumar Bipinbhai Mulani, and Panchani Satishkumar Jayantibhai – collectively hold a 94.99% stake prior to the IPO. Post-listing shareholding figures will reflect equity dilution based on subscription levels.
Shareholding Snapshot
Category |
Pre-Offer Holding | Post-Offer Holding* |
|---|---|---|
| Promoters + Group | 1,80,06,852 (94.99%) | [To be updated] |
| Public | 9,48,148 (5.01%) | [To be updated] |
Business Model Anchored in Digital Textile Printing Ecosystem
Incorporated in October 2021, True Colors Limited operates in the digital textile printing segment by importing and distributing wide-format printers, inks, and associated products. It caters to businesses across textiles, including exporters, manufacturers, designers, and entrepreneurs.
The company’s offerings are anchored in three key verticals:
- Machinery & Ink Supply (Import & Distribution): High-end printers sourced from global brands such as KONICA MINOLTA, HOPETECH, ITTEN, PENGDA, and SKYJET.
- Specialised Inks:
- Sublimation Inks for polyester and transfer printing.
- Reactive Inks for natural fibres like cotton and silk.
- Disperse Inks for direct-to-fabric polyester printing.
- Digital Textile Printing Services: Offers outsourced printing solutions and plans to expand fabric supply services.
The company has established a strong domestic presence through offices and service hubs in textile cities such as Surat, Amritsar, Panipat, Ludhiana, Delhi, Erode, Mumbai, Tirupur, Kolkata, and Varanasi. As of 31 December 2024, it employed 613 individuals across departments.
Steady Financial Growth Reflects Business Momentum
True Colors Limited has reported consistent revenue growth since its inception, supported by a rising asset base and profitability. The company has also increased its net worth steadily over the last three financial years.
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 154.7 | 105.91 | 45.53 | 10.64 |
| Revenue | 165.97 | 160.91 | 80.94 | 9.05 |
| Profit After Tax | 14.01 | 8.25 | 3.92 | 0.49 |
| Net Worth | 28.62 | 14.61 | 6.37 | 0.64 |
| Reserves & Surplus | 28.15 | 14.14 | 5.90 | 0.49 |
| Total Borrowing | 58.77 | 56.56 | 20.04 | 0 |
IPO Proceeds to Strengthen Working Capital and Reduce Borrowings
The company has outlined a clear utilisation plan for the net proceeds from the IPO. A large portion will support working capital needs, followed by debt repayment and other corporate initiatives.
Objects of the Issue
- Funding working capital requirements – ₹489 million
- Repayment/prepayment of borrowings – ₹300 million
- General corporate purposes – Amount not specified
Listing Plan
The equity shares are proposed to be listed on the SME Platform of BSE Limited. GYR Capital Advisors Private Limited is acting as the Book Running Lead Manager, and Bigshare Services Private Limited is the Registrar to the Offer.
True Colors Limited positions itself as a modern, solution-driven company aiming to accelerate innovation in digital textile printing. With a nationwide presence and a strong product portfolio, the IPO is expected to support the company’s long-term growth and market positioning. Further IPO details will be announced upon release of the Red Herring Prospectus.
REF: https://www.bsesme.com/download/376857/SME_IPO InPrinciple/TCL_DRHP_Final_20250713195253.pdf
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