True Colors IPO Lists on BSE SME Platform with Modest 5% Grey Market Premium
True Colors, a digital textile printing solutions provider, listed on the BSE SME platform following an IPO that was oversubscribed 45.46 times. The Rs 127.96 crore IPO was priced at Rs 181-191 per share. Despite high subscription rates, the grey market premium stands at a modest 5%. The company plans to use the IPO proceeds for working capital, debt repayment, and general corporate purposes. True Colors reported strong financial growth with revenue of Rs 234.05 crore (45% growth) and profit of Rs 24.69 crore (199% growth) in FY25.
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True Colors, a digital textile printing solutions provider, made its debut on the BSE SME platform following a highly subscribed initial public offering (IPO). The company's entry into the public market comes with a mix of strong investor interest and tempered expectations for immediate gains.
IPO Details and Subscription
The Rs 127.96 crore IPO was priced in the range of Rs 181-191 per share. The issue witnessed robust demand across all investor categories:
- Qualified Institutional Buyers (QIBs): 43.41 times subscribed
- Non-Institutional Investors (NIIs): 50.58 times subscribed
- Retail Investors: 44.42 times subscribed
Overall, the IPO was oversubscribed by an impressive 45.46 times, indicating strong investor confidence in the company's prospects.
Grey Market Premium
Despite the heavy subscription, the grey market premium for True Colors stands at a modest 5%. This suggests that market participants are expecting limited listing gains, contrasting with the high subscription rates seen during the IPO process.
Company Profile
True Colors, incorporated in 2021, specializes in importing and distributing digital textile printers and inks. The company also offers outsourced printing services, working with renowned brands such as Konica Minolta and Hopetech. True Colors has established service hubs in major textile centers across India.
Financial Performance
The company has demonstrated strong financial growth:
| Metric | FY25 | Growth |
|---|---|---|
| Revenue | 234.05 | 45% |
| Profit | 24.69 | 199% |
IPO Proceeds Utilization
True Colors raised Rs 36.40 crore from anchor investors. The company plans to utilize the IPO proceeds as follows:
- Working capital: Rs 48.9 crore
- Debt repayment: Rs 40.4 crore
- General corporate purposes: Remaining amount
The listing of True Colors on the BSE SME platform marks a significant milestone for the company. While the IPO garnered substantial interest from investors across categories, the modest grey market premium suggests a cautious outlook for immediate post-listing performance. Investors and market watchers will be keen to observe how True Colors leverages its newly acquired public status to fuel its growth in the digital textile printing sector.
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