True Colors to launch Rs 128 crore SME IPO tomorrow

Funds from the fresh issue will be allocated to working capital needs (Rs 48.90 crore), debt repayment (Rs 40.40 crore), and general corporate purposes

True Colors, a Surat-based distributor and importer of digital textile printers, will open its initial public offering (IPO) worth Rs 127.96 crore on September 23, closing on September 25. The anchor investor bidding will start a day earlier, on September 22.

The IPO includes a fresh issue of roughly 57 lakh shares and an offer for sale of 10 lakh shares by the promoters. The company has set the price band at Rs 181-191 per share, which could raise up to Rs 127.96 crore at the higher end.

Funds from the fresh issue will be allocated to working capital needs (Rs 48.90 crore), debt repayment (Rs 40.40 crore), and general corporate purposes.

Founded in October 2021, True Colors supplies digital textile printers and related solutions from brands such as Konica Minolta, Hopetech, iTTEN, PENGDA, and Skyjet. Its services cater to exporters, designers, manufacturers, and other businesses in the digital textile printing sector.

For FY25, the company posted a revenue of Rs 233.65 crore and a profit after tax of Rs 24.69 crore. Shares are proposed for listing on the BSE SME platform. GYR Capital Advisors is the lead manager, and Bigshare Services will handle registrar duties.