Before investing in any IPO, it is crucial to understand the company’s business model, growth potential, and market positioning. True Colors IPO review aims to give you a clear, structured perspective on the company so you can make an informed decision.
Headquartered in Surat, True Colors has emerged as a fast-growing player in the digital textile printing industry. With a fully integrated business model—spanning machinery imports, consumables supply, sublimation paper manufacturing, and textile printing services—the company has positioned itself as a one-stop solution provider.
As India’s textile sector rapidly shifts towards digital printing, driven by demand for customization, sustainability, and quicker turnaround times, True Colors is well-placed to capture this transformation opportunity. Its upcoming SME IPO opens the door for investors to participate in a growth story backed by robust financials, scalable manufacturing capacity, and recurring revenue streams.
True Colors IPO Review: Offer Details
| True Colors IPO Dates | 23 – 25 September 2025 |
| True Colors Issue Price | INR 181 – 191 per share |
| Fresh Issue | 56,99,600 shares (INR 103.16 – 108.86 crore) |
| Offer For Sale | 10,00,000 shares (INR 18.10 – 19.10 crore) |
| Total IPO Size | 66,99,600 shares (INR 121.26 – 127.96 crore) |
| Minimum Bid | 1,200 shares (INR 2,29,200) |
| Lot Size | 600 shares (INR 1,14,600) |
| Face Value | INR 10 per share |
| Individual Allocation | 35% |
| Listing On | BSE SME |
| Promoters | Ashishkumar D. Mulani, Sanjay R. Desai, Sagarkumar B. Mulani, Panchani S. J. |
| Lead Manager | GYR Capital Advisors |
| Registrar | Bigshare Services Pvt Ltd |
IPO Objects & Fund Utilization
- Working Capital: Up to INR 48.90 crore
- Debt Repayment / Prepayment: Up to INR 41.83 crore
- General Corporate Purposes: Balance
True Colors IPO Review: Business Model
True Colors operates on an integrated three-pillar model that connects the full digital textile printing value chain:
1. Machinery & Ink Supply (Import & Distribution)
- Imports and distributes high-quality wide-format inkjet printers from global leaders like Konica Minolta, Hopetech, Itten, Pengda, and Skyjet.
- Provides installation, spare parts, and after-sales service, making it a long-term partner rather than just a distributor.
- Ink portfolio:
- Sublimation inks (for polyester) – high brilliance, wash-fastness.
- Reactive inks (for cotton, silk, viscose) – deep saturation, superior fixation.
- Disperse inks (for polyester direct-to-fabric) – thermal stability, HD results.
- Strategy: Bundled offering of machines + inks + spares + service creates strong customer stickiness and recurring revenue.
2. Sublimation Paper Manufacturing & Supply
- Own manufacturing unit ensures control over quality, availability, and cost.
- FY25: Installed capacity 10.16 crore meters, utilization 87.28% → strong operational ramp-up.
- Customizable GSM options (30–100) and widths (36–72 inches) → caters to diverse industry requirements.
- Applications: sportswear, fast fashion, uniforms, home furnishings, promotional items.
- Advantage: Backward integration reduces reliance on external suppliers and strengthens margins.
3. Digital Textile Printing (Job-Work + Fabric Supply)
- Provides end-to-end fabric printing services, including:
- Job-work on client-supplied fabrics.
- Own printed fabric supply for brands and exporters.
- Wide coverage of printing methods: sublimation, reactive, fluorescent, foil, position printing, both-side printing.
- Applications: fashion apparel, sportswear, interiors, industrial textiles, promotional items.
- Offers RFD (Ready-for-Dyeing/Printing) preparation in-house, cutting outsourcing costs for customers.
Revenue Streams & Segment Analysis
True Colors has built a multi-vertical revenue model that combines trading, manufacturing, and services. Unlike many niche players, the company operates across the full digital textile printing value chain. This ensures balance between recurring revenues (inks, sublimation paper, job-work printing) and cyclical revenues (machinery sales).
Segment-Wise Revenue Contribution (INR in Crores)
| Segment | FY 2025 | % of Rev | FY 2024 | % of Rev | FY 2023 | % of Rev |
|---|---|---|---|---|---|---|
| Ink Sales | 71.49 | 30.60 | 57.66 | 36.02 | 53.09 | 65.82 |
| Machine Sales | 23.88 | 10.22 | 33.97 | 21.22 | 22.47 | 27.86 |
| Spare Parts | 6.27 | 2.68 | 5.97 | 3.73 | 5.00 | 6.19 |
| Sublimation Paper (Domestic + Export) | 65.90 | 28.21 | 44.36 | 27.71 | – | – |
| Fabric Printing (Domestic + Export) | 66.12 | 28.29 | 18.12 | 11.32 | 0.11 | 0.13 |
| Total Revenue | 233.66 | 100 | 160.08 | 100 | 80.66 | 100 |
True Colors IPO Analysis: Financial Performance
Key Financials (INR in Crores)
| Particulars | FY 2023 | FY 2024 | FY 2025 | CAGR (FY23–25) |
|---|---|---|---|---|
| Revenue from Operations | 80.66 | 160.08 | 233.66 | 70.2% |
| EBITDA | 5.67 | 14.50 | 40.91 | 173.5% |
| EBITDA Margin (%) | 7.0% | 9.0% | 17.5% | Expanding |
| PAT | 3.92 | 8.25 | 24.69 | 151.1% |
| PAT Margin (%) | 4.9% | 5.2% | 10.6% | Strong expansion |
| EPS | 3.32 | 4.94 | 13.77 | Robust growth |
| Debt/Equity | 3.15 | 3.87 | 0.86 | Improved sharply |
| RoNW (%) | 61.5% | 56.4% | 44.5% | Still strong |
| RoCE (%) | 21.4% | 18.6% | 35.9% | Big jump |
- Revenue tripled in 2 years, EBITDA grew 7x, and PAT grew 6x.
- Margin expansion reflects better cost control, scale, and backward integration.
- Balance sheet strengthened — Debt/Equity dropped to <1, freeing capacity for growth.
- RoCE jumped to 36%, showing efficient capital deployment.
Capacity & Utilization Efficiency
Sublimation Paper
- FY25 capacity: 10.16 crore meters, utilization 87.3%.
- FY24 capacity was much smaller (3.6 crore meters) with partial-year production.
Textile Printing
| Category | FY25 Capacity | FY25 Production | Utilization | FY24 Capacity | FY24 Production | Utilization |
|---|---|---|---|---|---|---|
| Cotton Fabric Printing | 28.65 lakh | 19.75 lakh | 68.9% | 5.00 lakh | 2.21 lakh | 44.3% |
| Polyester Printing (incl. position) | 1.14 crore | 67.75 lakh | 59.4% | 47.5 lakh | 23.19 lakh | 48.8% |
- Both cotton & polyester units are running at healthy 60–70% utilization.
- Expansion in FY24–25 already reflects strong ramp-up.
- Scope for further margin leverage as utilization nears 80–85%.
True Colors IPO Review: Strengths
1. Integrated Digital Textile Ecosystem
- Covers end-to-end value chain: machines, inks, sublimation paper, and digital printing services.
- Offers RFD (Ready-for-Dyeing/Printing) fabric preparation, multiple printing methods (sublimation, reactive, foil, fluorescent, both-side, position printing).
- Advantage: Customers get a single-vendor solution, lowering procurement complexity and ensuring compatibility across machines, consumables, and services.
2. Nationwide Presence & Service Infrastructure
- Regional offices & hubs in Surat, Amritsar, Panipat, Ludhiana, Delhi, Erode, Mumbai, Tirupur, Kolkata, and Varanasi.
- Ensures fast technical support, spare part supply, and minimized downtime.
- Revenue Distribution:
- Gujarat remains the largest base, but contribution fell to 64% in FY25 from 74% in FY24, showing geographic diversification.
- Maharashtra grew to 15.4% in FY25 vs. 8.4% in FY24, highlighting rapid expansion.
3. Reliable Customer Engagement & Recurring Revenue
- Inks and sublimation paper create recurring demand, as customers prefer original consumables to maintain warranties and quality.
- Top 10 customer revenue concentration is declining (39% in FY23 → 28% in FY25).
4. Advanced Manufacturing Facility & Supply Chain Control
- Own sublimation paper plant (capacity 10.16 crore meters, 87% utilization in FY25).
- In-house digital printing unit for job-work + fabric sales.
- Strong global sourcing partnerships for printers and inks (Konica Minolta, Pengda, etc.).
5. Experienced Leadership & Recognition
- Promoters:
- Sanjay R. Desai – Sales & Marketing, appointed as Chairman of Laser & Screen-Printing Committee (SGCCI, FY25).
- Sagar B. Mulani – Finance & Sublimation Paper.
- Ashishkumar D. Mulani – Textile Printing & Client Relations.
- Panchani S. J. – Operations & Workflow Management.
- Recognized with Tally MSME Honors (2024).
True Colors IPO Analysis: Growth Strategies
1. Expanding Market Reach
- Domestic growth in Maharashtra, Punjab, Delhi-NCR; international expansion being evaluated.
- Growing distribution of sublimation paper across hubs like Tirupur, Ludhiana, Panipat, Erode, and Kolkata.
2. Enhancing Operational Efficiency
- Undertook 6-month organizational development project with consultants.
- Steps taken:
- Process mapping & SOPs.
- Decentralized decision-making with vertical heads.
- ERP & software tools for real-time data visibility (e.g., Turbo software in sublimation paper unit).
3. Deepening Client Engagement
- Cross-selling across product lines: machines → inks → paper → job-work services.
- Regular sales team training to improve consultative selling.
- Customization, bundled offerings, and after-sales service used to increase wallet share.
4. Building a Scalable Organization
- Adopted vertical-specific P&L ownership with standardized KPIs.
- Implementing ERP & data intelligence tools to reduce key-person dependency.
5. Effective Working Capital & Debt Management
- IPO proceeds earmarked for working capital (INR 48.90 crore) and debt repayment (INR 41.83 crore).
- Debt/Equity has already improved to 0.86 in FY25.
True Colors IPO Review: Valuation Snapshot
| Particulars | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| EPS | 3.32 | 4.94 | 13.77 |
| P/E Ratio (at INR 181–191) | – | – | 13.14 – 13.87 |
| NAV | 7.09 | 16.28 | 29.26 |
| RoNW (%) | 61.52% | 56.42% | 44.53% |
| RoCE (%) | 21.43% | 18.56% | 35.94% |
| EBITDA Margin (%) | 7.00% | 9.01% | 17.48% |
| Debt/Equity | 3.15 | 3.87 | 0.86 |
- At ~13–14x FY25 earnings, valuation looks reasonable for a high-growth SME IPO.
- NAV has quadrupled in three years, reflecting value creation for shareholders.
- Strong RoCE and improved leverage profile underline capital efficiency and balance sheet strength.
Conclusion
True Colors stands out as a unique integrated player in India’s digital textile printing ecosystem, successfully combining trading, manufacturing, and services into a cohesive business model. The company has demonstrated the ability to scale rapidly while maintaining profitability, evidenced by a three-fold increase in revenues and significant margin expansion over the last two fiscal years. With strong utilization levels at its sublimation paper and textile printing facilities, a diversified product mix, and growing geographic presence beyond its Gujarat stronghold, True Colors is well positioned to capture the structural shift towards digital printing in the textile industry.
The IPO proceeds earmarked for debt reduction and working capital infusion will further strengthen financial flexibility and provide the capacity to sustain growth. Valuations are attractive relative to the company’s growth trajectory and return ratios, making this IPO a compelling opportunity for investors seeking exposure to a scalable, future-ready enterprise in a rapidly modernizing sector.
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