True Colors Ltd IPO
Status:
Overview
IPO date
23 Sept 2025 to 25 Sept 2025
Face value
₹ 0 per share
Price
₹ 181 to ₹191 per share
Issue Size
6,699,600 shares
(aggregating up to ₹ 127.96 Cr)
(aggregating up to ₹ 127.96 Cr)
Allotment Date
26 Sept 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of True Colors Ltd IPO
True Colors Ltd IPO Strategy
About True Colors Ltd
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T&C*
Strengths vs Risks of True Colors Ltd
Know the pros & cons
Strengths
Experienced Promoters having deep domain knowledge to scale up the business.- In house manufacturing capabilities.
- Management team with an established track record.
- Established track record of successfully completed orders.
- Efficient operational team.
Risks
- We do not have long-term agreements with a majority of our customers. Any changes or cancellations to our orders or our
inability to forecast demand for our products may adversely affect our business, results of operations and financial condition.
- Increases in the prices of raw materials required for our operations could adversely affect our business and results of
operations.
- We derive majority of our revenue from trading of Ink and digital printing machine business unit and any reduction in the
demand of such segment could have an adverse effect on our business, results of operations and financial conditions.
- We are subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of our dealership or
agency agreements that may adversely impact our business, results of operations, financial condition and prospects, including
our ability to expand into new territories and acquire additional dealerships.
- We are heavily dependent on the import for our machinery and ink divisions. A significant portion of our import is derived from
selected geographies such as China and Japan. Any adverse developments in this market could adversely affect our business.
- Fluctuation in market trends for Digital Textile Printing
- Our operations are subject to high working capital requirements. If we are unable to generate sufficient cash flows to allow us
to make required payments, there may be an adverse effect on our results of operations.
- The majority of our product and services sales is concentrated in the regions namely, Gujarat and Punjab. For the period ended
for Fiscal 2025, 2024 and 2023 our revenue from sale of products and services in Gujarat, Maharashtra and Punjab accounted
for 90.63%, 93.32%, and 92.34% of our revenue from operations, respectively any adverse developments affecting our operations
in these regions could have an adverse impact on our business, financial condition, results of operations and cash flows.
- The restated examination report by our peer review auditor has provided a matter of emphasis paragraph for the company,
regarding acceptance of loan from persons other than directors, their relatives, or related parties, except as permitted under the
Act.
- Our Promoter and Promoter Group are involved in a venture which is in the same line of business/unit as that of our Company.
- Our Company has experienced negative cash flow in prior periods and net decrease in cash and cash equivalents which may
continue to do so in the future, which could have a material adverse effect on our business, prospects, financial condition, cash
flows and results of operations.
- Our business is subject to seasonal fluctuations, which could adversely affect our financial performance.
- Our Registered Office, Manufacturing facility and other offices from where we operate is not owned by us.
- We depend on a limited number of suppliers for raw materials. Any interruption in the availability of raw materials could
adversely impact our operations. Further, any failure by our suppliers to provide raw materials to us on time or at all, or as per
our specifications and quality standards could have an adverse impact on our ability to meet our manufacturing and delivery
schedules.
- Our contingent liabilities as stated in our Restated Financial Statements could adversely affect our financial condition.
- Any non-compliance or delays in GST Return Filings and EPF Payments may expose us to penalties from the regulators.
- Our Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at
different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make us liable to
liabilities/penalties and may adversely affect our reputation, business and financial status.
- If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to
operate our business, it may have a material adverse effect on our business, results of operations and financial condition.
- We may be unable to sufficiently obtain, maintain, protect, or enforce our intellectual property and other proprietary rights.
- An inability to comply with repayment and other covenants in the financing agreements or otherwise meet our debt servicing
obligations could adversely affect our business, financial condition, cash flows and credit rating.
- We will not receive any proceeds from the Offer for Sale portion.
- The company's individual Promoters play a key role in its operations and we heavily rely on their knowledge and experience in operating
the company's business and therefore, it is critical for its business that the company's Promoter and Executive Directors remain associated with the company's.
The company's success also depends upon the services of its key managerial personnel and the company's ability to attract and retain key managerial
personnel and our inability to attract them may affect its operations.
- The company has a large work force, and the company's employee benefit expense and contract labour charges are one of the larger components of
its fixed operating costs. An increase in employee benefit expenses and, or, contract labour charges could reduce the company's
profitability. Further, the company's operations could be adversely affected by work stoppages or increased wage demands by its employees
or any other kind of dispute with the company's employees.
- Information relating to capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on
various assumptions and estimates. Under-utilization of capacity of its manufacturing facilities and an inability to effectively
utilize the company's manufacturing facilities may have an adverse effect on its business and future financial performance.
- The company faces competition from both domestic as well as international players and the company's inability to compete effectively may have a
material adverse impact on its business and results of operations.
- In addition to normal remuneration, other benefits and reimbursement of expenses some of the company's Directors (Promoters) and Key
Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the company's
Company.
- The company is dependent on information technology systems in carrying out the company's business activities and it forms an integral part of its
business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company face
failures of the company's information technology systems, the company may not be able to compete effectively which may result in higher costs and
would adversely affect its business and results of operations.
- Negative publicity against the company, any of its group companies, customers, or their affiliates, which could cause reputational
harm and have a material adverse effect on its business, financial condition, results of operations, and prospects.
- The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain
secured borrowings availed by the Company and accordingly, the utilization of that portion of the Net Proceeds will not result
in creation of any tangible assets.
- The company is exposed to risks in connection with the provision of services of digital textile printers. Further, after sales service is an
important aspect for the company's success. Any failures by the company's to provide satisfactory after-sale services could adversely impact the company's
operations and financial condition.
- An inability to manage the company's growth could disrupt its business and reduce the company's profitability.
- The company's directors does not have any prior experience of being a director in any other listed company in India and this may present
certain potential challenges for the Company and in the event of any material non-compliance where the company's Directors are held
liable and responsible, the company may have to appoint new directors.
- The company may encounter delays in the implementation and execution of the company's orders.
- The company's ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements
and capital expenditures.
- The company has in past entered into related party transactions and the company may continue to do so in the future
As.
- The company faces risks associated with currency exchange rate fluctuations.
- The company is completely reliant on third-party logistics service providers for transport of input materials and finished products.
- Absence of comparable publicly listed companies may adversely affect investor perception, valuation, and marketability of the company's
Securities.
- If the company is unable to manage attrition and attract and retain skilled professionals, it may adversely affect the company's business prospects,
reputation and future financial performance.
- Any failures in the company's quality control processes may damage its reputation, and adversely affect the company's business, cash flows, results
of operations and financial condition. The company may face reputational harm or proceedings if the quality of the company's products and services
does not meet the company's customers' expectations.
- The company has issued the following shares in the last one year prior to the date of this Red Herring Prospectus, which may be at a price
lower than the Offer Price.
- The average cost of acquisition of Equity Shares by the company's Promoters and Selling Shareholders could be lower than the Offer price
determined in consultation with Book Running Lead Manager in accordance with the SEBI ICDR Regulations.
- The company's insurance coverage may not be adequate to protect its against all potential losses to which the company may be subject and this may
have an adverse effect on the company's business and financial condition.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The Objects of the Offer for which funds are being raised, are based on the company's management estimates and any bank or financial
institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its
discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".
- The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Offer, which will allow them
to influence the outcome of matters submitted for approval of the company's shareholders.
- Any future issuance of Equity Shares or convertible securities, including options under any stock option plan or other equity
linked securities may dilute your shareholding, and significant sales of Equity Shares by its major shareholders, may adversely
affect the trading price of the company's Equity Shares.
- Impairment of Goodwill May Adversely Affect the company's Financial Condition and Results of Operations.
- After this Offer, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not
develop.
- The Offer price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the
market price of the company's Equity Shares may decline below the issue price and you may not be able to Sell your Equity Shares at or
above the Issue Price.
- QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares
or the Bid Amount) at any stage after submitting a Bid and Individual Investors are not permitted to withdraw their Bids after
Bid/Offer Closing Date.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- Pursuant to Section 27 of the Companies Act 2013, any variation in the objects would require a special resolution of the
Shareholders and the company's Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders
of the Company who do not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the
SEBI.
- You may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
How to check the allotment status of True Colors Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 23 Sept 2025 & closes on 25 Sept 2025.
True Colors Limited was incorporated on October 9, 2021 as 'True Colors Private Limited', a private limited company, pursuant to a certificate of incorporation issued by the Registrar of Companies, Central Registration Centre. Subsequently, it was converted into a public limited company on March 10, 2025 and consequently the name of the Company was changed to 'True Colors Limited' by the Central Processing Centre.
Company is engaged in the business of import and distribution of digital textile printers and manufacturing and supplying of products related to digital textile printing industry. In 2022, the Company executed a dealership agreement with Wuxi Pengda and Hangzhou Maxunion - iTTEN under 'True Colors Private Limited' and further executed a dealership agreement with Konica Minolta for supply of digital textile printing machines. It established an advanced facility with a production capacity of 75,000 meters of digitally printed fabric daily, 300,000 meters of sublimation paper daily, and distribution of 100 tons of ink per month by expanding the portfolio of digital textile printing machines in 2023.
The Company expanded operations offering a fully integrated textile printing service in 2024. It expanded sublimation paper production capacity from 30 lakh meters to 100 lakh meters per month in 2024.
Company came up with the Initial Public Offer of 66,99,600 equity shares having the face value Rs 10 each, by raising Rs 127.96 Cr, comprising a fresh issue of 56,99,600 equity shares aggregating to Rs 108.86 Cr and the offer for sale of 10,00,000 equity shares aggregating to Rs 19 Cr in September 2025.
The Company has attained production capacity of 5,25,000 meters of digitally printed fabric annually, 3,60,00,000 meters of sublimation paper annually, and distribution of 100 tons of ink per month. in FY 2025.
True Colors Ltd IPO will close on 25 Sept 2025.
- Experienced Promoters having deep domain knowledge to scale up the business.
- In house manufacturing capabilities.
- Management team with an established track record.
- Established track record of successfully completed orders.
- Efficient operational team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Ashish Kumar Durlbhbhai Mulani | 4478499 | 23.63 | 4228499 | 17.15 |
| 2 | Sanjay Raghubhai Desai | 4478499 | 23.63 | 4228499 | 17.15 |
| 3 | Sagarkumar Bipinbhai Mulani | 4478499 | 23.63 | 4228499 | 17.15 |
| 4 | Panchani Satishkumar Jayantibh | 4482299 | 23.65 | 4232299 | 17.17 |
| 5 | Bhavikaben Sagarkumar Mulani | 3800 | 0.02 | 3800 | --- |
| 6 | Komal Sanjay Desai | 3800 | 0.02 | 3800 | --- |
| 7 | Dakshaben Ashishkumar Mulani | 3800 | 0.02 | 3800 | --- |
| 8 | Desai Paresh Raghubhai | 51852 | 0.27 | 51852 | 0.21 |
- We do not have long-term agreements with a majority of our customers. Any changes or cancellations to our orders or our inability to forecast demand for our products may adversely affect our business, results of operations and financial condition.
- Increases in the prices of raw materials required for our operations could adversely affect our business and results of operations.
- We derive majority of our revenue from trading of Ink and digital printing machine business unit and any reduction in the demand of such segment could have an adverse effect on our business, results of operations and financial conditions.
- We are subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of our dealership or agency agreements that may adversely impact our business, results of operations, financial condition and prospects, including our ability to expand into new territories and acquire additional dealerships.
- We are heavily dependent on the import for our machinery and ink divisions. A significant portion of our import is derived from selected geographies such as China and Japan. Any adverse developments in this market could adversely affect our business.
- Fluctuation in market trends for Digital Textile Printing
- Our operations are subject to high working capital requirements. If we are unable to generate sufficient cash flows to allow us to make required payments, there may be an adverse effect on our results of operations.
- The majority of our product and services sales is concentrated in the regions namely, Gujarat and Punjab. For the period ended for Fiscal 2025, 2024 and 2023 our revenue from sale of products and services in Gujarat, Maharashtra and Punjab accounted for 90.63%, 93.32%, and 92.34% of our revenue from operations, respectively any adverse developments affecting our operations in these regions could have an adverse impact on our business, financial condition, results of operations and cash flows.
- The restated examination report by our peer review auditor has provided a matter of emphasis paragraph for the company, regarding acceptance of loan from persons other than directors, their relatives, or related parties, except as permitted under the Act.
- Our Promoter and Promoter Group are involved in a venture which is in the same line of business/unit as that of our Company.
- Our Company has experienced negative cash flow in prior periods and net decrease in cash and cash equivalents which may continue to do so in the future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.
- Our business is subject to seasonal fluctuations, which could adversely affect our financial performance.
- Our Registered Office, Manufacturing facility and other offices from where we operate is not owned by us.
- We depend on a limited number of suppliers for raw materials. Any interruption in the availability of raw materials could adversely impact our operations. Further, any failure by our suppliers to provide raw materials to us on time or at all, or as per our specifications and quality standards could have an adverse impact on our ability to meet our manufacturing and delivery schedules.
- Our contingent liabilities as stated in our Restated Financial Statements could adversely affect our financial condition.
- Any non-compliance or delays in GST Return Filings and EPF Payments may expose us to penalties from the regulators.
- Our Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make us liable to liabilities/penalties and may adversely affect our reputation, business and financial status.
- If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.
- We may be unable to sufficiently obtain, maintain, protect, or enforce our intellectual property and other proprietary rights.
- An inability to comply with repayment and other covenants in the financing agreements or otherwise meet our debt servicing obligations could adversely affect our business, financial condition, cash flows and credit rating.
- We will not receive any proceeds from the Offer for Sale portion.
- The company's individual Promoters play a key role in its operations and we heavily rely on their knowledge and experience in operating the company's business and therefore, it is critical for its business that the company's Promoter and Executive Directors remain associated with the company's. The company's success also depends upon the services of its key managerial personnel and the company's ability to attract and retain key managerial personnel and our inability to attract them may affect its operations.
- The company has a large work force, and the company's employee benefit expense and contract labour charges are one of the larger components of its fixed operating costs. An increase in employee benefit expenses and, or, contract labour charges could reduce the company's profitability. Further, the company's operations could be adversely affected by work stoppages or increased wage demands by its employees or any other kind of dispute with the company's employees.
- Information relating to capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates. Under-utilization of capacity of its manufacturing facilities and an inability to effectively utilize the company's manufacturing facilities may have an adverse effect on its business and future financial performance.
- The company faces competition from both domestic as well as international players and the company's inability to compete effectively may have a material adverse impact on its business and results of operations.
- In addition to normal remuneration, other benefits and reimbursement of expenses some of the company's Directors (Promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the company's Company.
- The company is dependent on information technology systems in carrying out the company's business activities and it forms an integral part of its business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company face failures of the company's information technology systems, the company may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
- Negative publicity against the company, any of its group companies, customers, or their affiliates, which could cause reputational harm and have a material adverse effect on its business, financial condition, results of operations, and prospects.
- The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain secured borrowings availed by the Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.
- The company is exposed to risks in connection with the provision of services of digital textile printers. Further, after sales service is an important aspect for the company's success. Any failures by the company's to provide satisfactory after-sale services could adversely impact the company's operations and financial condition.
- An inability to manage the company's growth could disrupt its business and reduce the company's profitability.
- The company's directors does not have any prior experience of being a director in any other listed company in India and this may present certain potential challenges for the Company and in the event of any material non-compliance where the company's Directors are held liable and responsible, the company may have to appoint new directors.
- The company may encounter delays in the implementation and execution of the company's orders.
- The company's ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- The company has in past entered into related party transactions and the company may continue to do so in the future As.
- The company faces risks associated with currency exchange rate fluctuations.
- The company is completely reliant on third-party logistics service providers for transport of input materials and finished products.
- Absence of comparable publicly listed companies may adversely affect investor perception, valuation, and marketability of the company's Securities.
- If the company is unable to manage attrition and attract and retain skilled professionals, it may adversely affect the company's business prospects, reputation and future financial performance.
- Any failures in the company's quality control processes may damage its reputation, and adversely affect the company's business, cash flows, results of operations and financial condition. The company may face reputational harm or proceedings if the quality of the company's products and services does not meet the company's customers' expectations.
- The company has issued the following shares in the last one year prior to the date of this Red Herring Prospectus, which may be at a price lower than the Offer Price.
- The average cost of acquisition of Equity Shares by the company's Promoters and Selling Shareholders could be lower than the Offer price determined in consultation with Book Running Lead Manager in accordance with the SEBI ICDR Regulations.
- The company's insurance coverage may not be adequate to protect its against all potential losses to which the company may be subject and this may have an adverse effect on the company's business and financial condition.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The Objects of the Offer for which funds are being raised, are based on the company's management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".
- The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of the company's shareholders.
- Any future issuance of Equity Shares or convertible securities, including options under any stock option plan or other equity linked securities may dilute your shareholding, and significant sales of Equity Shares by its major shareholders, may adversely affect the trading price of the company's Equity Shares.
- Impairment of Goodwill May Adversely Affect the company's Financial Condition and Results of Operations.
- After this Offer, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
- The Offer price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the issue price and you may not be able to Sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- Pursuant to Section 27 of the Companies Act 2013, any variation in the objects would require a special resolution of the Shareholders and the company's Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of the Company who do not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.
- You may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The Issue type of True Colors Ltd is Book Building - SME.
The minimum application for shares of True Colors Ltd is 1200.
The total shares issue of True Colors Ltd is 6699600.
Initial public offer of 66.99,600 equity shares of face value of Rs. 10/- each ("Equity Shares") of True Colors Limited (the "Company" or "Truecolors" or "Issuer") at an offer price of Rs.191 per equity share (including a share premium of Rs. 181 per equity share) for cash, aggregating to Rs. 127.96 crores ("Public Offer") comprising a fresh issue of to 56,99,600 equity shares aggregating to Rs. 108.86 crores (the "Fresh Issue") and an offer for sale of 2,50,000 equity shares by Ashishkumar Durlbhbhai Mulani, 2,50,000 equity shares by Sanjay Raghubhai Desai, 2,50,000 equity shares by Sagarkumar Bipinbhai Mulani; and 2,50,000 equity shares by Panchani Satishkumar Jayantibhai ("the Promoter Selling Shareholders") aggregating 10,00,000 equity shares by the promoter selling shareholders ("Offer for Sale") aggregating to Rs.19.91 crores out of which 3,36,000 equity shares of face value of Rs. 10/- each, at an offer price of Rs. 191 per equity share for cash, aggregating Rs. 6.42 crores will be reserved for subscription by the market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. offer of 63,63,600 equity shares of face value of Rs. 10/- each, at an offer price of Rs. 191 per equity share for cash, aggregating upto Rs. 121.54 crores is hereinafter referred to as the "Net Offer". The public offer and net offer will constitute 27.17 % and 25.81 % respectively of the post-offer paid-up equity share capital of the company.