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True Colors IPO
True Colors Ltd
₹1,08,600 /600 sharesMinimum Investment
True Colors IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 23 Sep ‘25 - 25 Sep ‘25 | ₹2,17,200 | 600 | ₹181 - ₹191 |
| Issue Size | IPO Doc |
|---|---|
| 127.96Cr | RHP PDF |
About True Colors
Founded in
2021
Managing director
Mr. Sanjay Raghubhai Desai
Parent organisation
True Colors Ltd
Strengths & Financials of True Colors
Strengths
Risks
The company claims that it has developed a comprehensive business model that covers the entire value chain of digital textile printing. This approach allows it to control product quality, streamline operations, and enhance customer satisfaction. The company states that it acts as a single-point solution provider, reducing customer dependence on multiple vendors and simplifying procurement and production processes.
The company claims that it imports and distributes wide-format digital textile inkjet printers from well-known international brands, including Konica Minolta, Hopetech, Itten, Pengda, and Skyjet.
True Colors maintains a wide presence across India with regional offices and service hubs in key textile centres such as Surat, Amritsar, Panipat, Ludhiana, Delhi, Erode, Mumbai, Tirupur, Kolkata, and Varanasi. The company states that this network enables quick technical support, timely spare part deliveries, and a steady supply of consumables, helping customers avoid production delays and maintain continuous operations.
The company claims to have strong in-house manufacturing and structured supply chain management. The company further states that it operates its own sublimation paper production facility, ensuring consistent quality, dependable supply, and cost-efficient output. This vertical integration reduces dependence on external suppliers, improves cost control, and helps maintain high-quality standards for consumables.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 80.66 crore in FY23 to Rs 160.08 crore in FY24 and Rs 233.66 crore in FY25. PAT increased from Rs 3.92 crore in FY23 to Rs 8.24 crore in FY24 and Rs 24.69 crore in FY25.
The company’s top 10 customers accounted for Rs 65.91 crore (28.21 percent) of the company’s total revenue in FY25, Rs 53.28 crore (33.28 percent) in FY24, and Rs 31.63 crore (39.21 percent) in FY23. The company does not have long-term agreements with any of its clients; therefore, any loss of any of these clients or a decline in business from them could adversely affect the company’s operations and finances.
The company derives major revenue from the sales of ink and digital printing machines. Ink sales accounted for Rs 71.49 crore (30.60 percent) of the company’s total revenue in FY25, Rs 57.66 crore (36.04 percent) in FY24, and Rs 53.05 crore (65.82 percent) in FY23. Revenue from digital printing machine sales accounted for Rs 23.88 crore (10.22 percent) of the company’s total revenue in FY25, Rs 33.97 crore (21.20 percent) in FY24, and Rs 22.47 crore (27.86 percent) in FY23. Any decline in the demand for ink and digital printing machines could negatively affect the company’s operations and financial performance.
The company’s ink and machine divisions are dependent on imports from China, Hong Kong, Italy, and Japan. China contributed the most, accounting for Rs 42.32 crore (64.13 percent) of the total imports in FY25, Rs 37.63 crore (59.29 percent) in FY24, and Rs 12.41 crore (46.71 percent) in FY23. Japan is the second-largest contributor and accounted for Rs 22.43 crore (33.99 percent) of the total imports in FY25, Rs 25.52 crore (40.22 percent) in FY24, and Rs 12.68 crore (47.71 percent) in FY23. Any adverse changes in the international trade dynamics, deterioration of India’s relations with these countries, or any negative developments in the political, social, or economic scenarios in these countries could hurt the company’s operations and profitability.
The company derives a major portion of its revenue from Gujarat and Punjab. Gujarat accounted for Rs 149.30 crore (63.90 percent) of the company’s total revenue in FY25, Rs 118.37 crore (73.95 percent) in FY24, and Rs 53.44 crore (66.25 percent) in FY23. Punjab accounted for Rs 26.41 crore (11.30 percent) of the company’s total revenue in FY25, Rs 17.62 crore (11.01 percent) in FY24, and Rs 18.38 crore (22.78 percent) in FY23. Any political, economic, social, or civil unrest in these locations could negatively impact the company’s sales and affect its operations and finances.
The company has observed a sharp increase in its trade receivables, which increased from Rs 13.34 crore in FY23 to Rs 22.97 crore in FY24 and Rs 56.60 crore in FY25. Any failure to collect these receivables on time or at all can negatively impact the business and its financial condition.
The company reported negative cash flows from operating activities amounting to Rs 11.70 crore in FY23, which led to a net decrease in cash and cash equivalents. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
The company's top 10 suppliers accounted for Rs 107.69 crore (74.07 percent) of the company’s total purchases in FY25, Rs 119.20 crore (94.70 percent) in FY24, and Rs 29.10 crore (42.60 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.
As of FY25, the company had total contingent liabilities of Rs 27.01 crore. If any of these contingent liabilities materialise, it could harm the company’s financial performance.
The company operates under the significant control and restrictions of original equipment manufacturers (OEMs) as outlined in its dealership and agency agreements. These terms can limit expansion into new markets, hinder the acquisition of additional dealerships, and affect business performance and financial results.
The company is affected by seasonality, with its sales high during festivals, weddings, and other cultural events. Any inability to address this fluctuation in demand could adversely affect its business and financial condition.
The company, its directors, and promoters are involved in various legal proceedings, including tax-related and criminal cases. Any adverse judgment in any of these cases could be detrimental to the company’s business prospects.
The company’s attrition rate for FY25 reached 37.5 percent. Any failure to reduce employee turnover and to attract and retain skilled staff could harm the company’s business prospects, reputation, and financial performance.
As of FY25, the company reported a total indebtedness of 47.51 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
The company has been in existence for a short period of time. That makes an in-depth analysis of its operations and future prospects difficult.
True Colors Financials
*All values are in Rs. Cr
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Application Details of True Colors IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Individual investor | ₹181 - 191 | ₹2 - 5 Lakh |
For True Colors IPO, eligible investors can apply as Individual investor.