Unveiling True Colors Ltd. IPO: A Deep Dive into Digital Textile Printing Investment

Introducing True Colors Ltd.: Innovating Textile Production

Founded in October 2021, True Colors Ltd. has rapidly positioned itself as a key player in the digital textile printing sector. The company's core activities revolve around importing and distributing advanced digital textile printers, alongside supplying essential products crucial for this specialized industry. Its mission is to empower a diverse clientele, including exporters, manufacturers, designers, and emerging entrepreneurs, by providing state-of-the-art digital printing solutions that foster modernization and growth.

Key Business Verticals:

• Advanced Machinery & Ink Distribution: Specializing in the import and distribution of high-quality wide-format digital textile printers from globally recognized brands like KONICA MINOLTA, HOPETECH, ITTEN, PENGDA, and SKYJET.
• Specialized Ink Formulations: Offering a comprehensive range of sublimation, reactive, and disperse inks meticulously formulated for various fabric types, including polyester, cotton, viscose, and silk, ensuring deep color saturation and fastness.
• Digital Textile Printing Services: Providing expert digital textile printing for clients requiring outsourced solutions, with plans to expand its offerings in printed fabric supply.

True Colors Ltd. boasts a robust operational footprint across India, reinforced by strategic regional offices and dedicated service hubs in major textile manufacturing centers such as Surat, Amritsar, Panipat, Ludhiana, Delhi, and Mumbai. This widespread presence ensures prompt service support and cultivates strong, recurring customer relationships.

The Public Offering: Essential Details of True Colors IPO

The True Colors Ltd. IPO is structured as a Book Built Issue, with the primary goal of raising ₹127.96 crores. This offering comprises both a fresh issue of new equity shares and an Offer for Sale (OFS) by existing shareholders.

IPO Journey: Key Dates to Remember

Navigating an IPO requires awareness of critical dates. Here is the tentative schedule for the True Colors IPO:

Allocation Structure by Investor Segment

The shares offered in the True Colors IPO are strategically distributed among various investor categories:

Investment Requirements: Lot Size and Application Amount

For those considering participation, it's important to understand the minimum investment required. Applications are accepted in fixed lot sizes, with retail investors needing to bid for at least 1,200 shares.

Financial Performance: A Glimpse at Growth

True Colors Ltd. has demonstrated an impressive financial growth trajectory, with substantial improvements in both revenue and profitability over the past few fiscal periods. This indicates a growing market presence and efficient operational management.

Notably, between the fiscal years ending March 31, 2024, and March 31, 2025, the company's total income surged by 45%, while its Profit After Tax (PAT) witnessed a remarkable increase of 199%. This robust growth underscores the company's operational strength and potential.

Key Valuation and Performance Indicators (as of March 31, 2025)

With a market capitalization of ₹470.90 crores, True Colors Ltd. exhibits the following key performance metrics:

The Debt-to-Equity ratio of 0.86 suggests a balanced capital structure, while strong ROE and ROCE figures highlight efficient use of shareholder funds and capital.

Earnings Per Share & Price-to-Earnings Ratio

Leadership and Ownership Structure

True Colors Ltd. is steered by a team of dedicated promoters: Ashish Kumar Durlbhbhai Mulani, Sanjay Raghubhai Desai, Sagarkumar Bipinbhai Mulani, and Panchani Satishkumar Jayantibhai. Their collective experience underpins the company's strategic direction.

Promoter Shareholding:

• Pre-Issue Holding: 94.87%
• Post-Issue Holding: 68.88%

The public issue results in a planned dilution of promoter shareholding, a standard procedure in IPOs aimed at broadening the shareholder base and facilitating capital infusion for company growth.

Objectives of the Public Issue: Fueling Future Aspirations

The capital garnered from the True Colors IPO is earmarked for strategic deployment to bolster the company's operational capabilities and expansion plans. The key objectives include:

• Allocating funds to meet the ongoing working capital requirements, ensuring smooth day-to-day operations and facilitating expansion initiatives.
• Utilizing a portion of the proceeds for the repayment or pre-payment of existing company borrowings, thereby strengthening the balance sheet and reducing financial leverage.
• Designating funds for general corporate purposes, which provides the company with flexibility to pursue various strategic initiatives, invest in new technologies, or cater to unforeseen business needs.

Anchor Investor Engagement

A significant indicator of institutional confidence, True Colors Ltd. successfully raised ₹36.40 crores from anchor investors prior to the main public offering.

• Anchor Bid Acceptance Date: September 22, 2025
• Shares Allocated to Anchor Investors: 19,05,600
• Lock-in Period for 50% of Shares: Concludes on October 30, 2025 (30 Days Post Allotment)
• Lock-in Period for Remaining Shares: Concludes on December 29, 2025 (90 Days Post Allotment)

Strategic Landscape: A SWOT Analysis

To provide a holistic view for potential investors, an examination of True Colors Ltd.'s strengths, weaknesses, opportunities, and threats is beneficial.

Strengths:

• Comprehensive Digital Textile Ecosystem: Offering end-to-end solutions from machinery to inks and services, creating a robust value chain.
• Widespread Market Reach: Strong nationwide presence coupled with rapid service support in key textile manufacturing hubs.
• High Customer Retention: Focus on reliable customer engagement fosters recurring revenue and strong client relationships.
• Robust Operational Control: Benefits from an advanced manufacturing facility and efficient supply chain management.
• Experienced Leadership: Guided by a seasoned and professional management team.
• Impressive Financial Growth: Demonstrated significant year-on-year increases in both revenue and profitability.

Weaknesses:

• SME Platform Listing: Trading on the SME platform might entail different liquidity characteristics and broader investor awareness compared to mainboard listings.
• Higher Minimum Investment: The substantial minimum investment amount for retail investors could potentially limit participation from a wider individual investor base.
• Reliance on Imports: Dependence on international suppliers for high-quality wide-format digital textile printers.

Opportunities:

• Expanding Digital Textile Market: Capitalizing on the growing demand for digital printing solutions within the Indian textile industry.
• Technological Evolution: Continuous advancements in digital printing technology can open avenues for new product development and service diversification.
• Market Share Growth: Potential to further expand its market share through strategic partnerships and enhanced service offerings.

Threats:

• Intense Competition: Facing significant competition from both domestic and international players in the rapidly evolving digital textile printing sector.
• Economic Fluctuations: Vulnerability to downturns in the broader economy or specific challenges within the textile industry.
• Currency Volatility: As an importer, adverse movements in foreign exchange rates could impact operational costs and profitability.
• Technological Disruption: The rapid pace of technological change poses a risk of existing technologies becoming obsolete if not continually updated.

Key Contacts for Information

For direct inquiries or further information regarding True Colors Ltd. and its IPO:

Company Details:

• True Colors Ltd.
• P-8, GR Flr to 3rd Flr, Somakanjiini, Wadi Patel Line Khatodara, Surat, Gujarat, 395002
• Phone: +91 7069169145
• Email: cs@truecolorsgroup.com

Registrar to the Issue:

• Bigshare Services Pvt.Ltd.
• Phone: +91-22-6263 8200
• Email: ipo@bigshareonline.com