True Colors Launches Rs 128 Crore IPO with Strong Grey Market Premium
True Colors, a digital textile printer importer and ink manufacturer, has opened its Initial Public Offering (IPO) on the BSE SME platform. The company aims to raise Rs 128 crore through a combination of fresh issue and offer-for-sale. The IPO is priced between Rs 181-191 per share and will close on September 25. The company plans to use the funds for working capital, debt repayment, and general corporate purposes. True Colors has shown strong financial performance with revenue of Rs 234 crore, EBITDA of Rs 40.90 crore, and profit after tax of Rs 24.70 crore. The IPO has garnered significant attention with a 24% grey market premium over the upper price band.
*this image is generated using AI for illustrative purposes only.
True Colors, a digital textile printer importer and ink manufacturer, has launched its Initial Public Offering (IPO) on the BSE SME platform, aiming to raise Rs 128 crore. The IPO, which is set to close on September 25, has garnered significant attention with a strong grey market premium.
IPO Details
- Price Band: Rs 181 - Rs 191 per share
- Issue Size: Rs 128.00 crore
- Fresh Issue: Rs 109.00 crore
- Offer-for-Sale: Rs 19.10 crore
- Valuation: Rs 471.00 crore at the upper price band
- Listing Date: September 30 on BSE SME platform
- Minimum Investment: Rs 2.29 lakh for 1,200 shares
- Grey Market Premium: 24% over the upper price band
Company Performance
True Colors has demonstrated robust financial performance in recent times:
| Financial Metric | Amount (Rs Crore) | Growth |
|---|---|---|
| Revenue | 234.00 | 45% |
| EBITDA | 40.90 | >100% |
| EBITDA Margin | 17.5% | - |
| Profit After Tax | 24.70 | ~200% |
The company's EBITDA more than doubled, with margins expanding to 17.5%. Notably, the profit after tax nearly tripled, showcasing strong bottom-line growth.
Use of Proceeds
The funds raised through the IPO will be allocated as follows:
- Working capital requirements: Rs 48.90 crore
- Repayment of borrowings: Rs 40.40 crore
- General corporate purposes
Market Sentiment
The IPO has received a positive response in the grey market, with a premium of 24% over the upper price band. This indicates strong investor interest in True Colors' offering.
As the IPO closes on September 25, investors and market watchers will be keenly observing the subscription levels and the eventual listing performance on September 30. The strong financial performance and positive grey market premium suggest that True Colors' IPO has generated significant buzz in the SME segment of the Indian stock market.
19
