True Colors
- True Colors is coming out with an initial public offering (IPO) of 66,99,600 equity shares in a price band of Rs 181-191 per equity share.
- The issue will open on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 18.10 times of its face value on the lower side and 19.10 times on the higher side.
- Book running lead manager to the issue is GYR Capital Advisors.
- Compliance Officer for the issue is Gandharva Javanika.
Profile of the company
True Colors was incorporated on October 9, 2021 as ‘True Colors Private Limited’, a private limited company. Subsequently, the company was converted into a public limited company pursuant to a resolution passed by the Shareholders at an extraordinary general meeting held on February 28, 2025 and consequently the name of the company was changed to ‘True Colors Limited’. The company is a comprehensive digital textile printing services provider, offering end-to-end solutions across the value chain -- including trading of digital printing machines, inks, and parts; manufacturing of sublimation paper; and providing advanced digital fabric printing services. With fully integrated in-house capabilities, it delivers a one-stop solution for both materials and services for digital textile printing.
The company is engaged in the business of import and distribution of digital textile printers and manufacturing and supplying of products related to digital textile printing industry. Its business model includes manufacturing as well as trading of Machinery & Ink (Import & Distribution), Sublimation Paper and Digital Textile Printing. By combining these businesses segments, it has built an ecosystem that allows its customers to access machines and consumables (inks & sublimation paper), digital textile printing for custom fabric requirements, and after sales service, technical support & spare parts. This structure ensures operational efficiency, strengthens customer relationships, and establishes the company as a one-stop solution for digital textile printing.
Its business model addresses the needs of textile manufacturers, export houses and traders by providing high-precision printing solutions, specialized consumables, and an integrated supply chain. Its leadership team, comprising Ashishkumar Durlbhbhai Mulani, Sanjay Raghubhai Desai, Sagarkumar Bipinbhai Mulani and Panchani Satishkumar Jayantibhai, brings extensive industry experience and technical expertise.
Proceed is being used for:
- Funding working capital requirements of the company
- Repayment/prepayment of all or certain of its borrowings availed by the company
- General corporate purposes
Industry Overview
The fashion industry is experiencing a fundamental shift toward personalization and customization, driven by changing consumer preferences and the need for unique, individualized clothing items. Digital textile printing technology has emerged as a crucial enabler of this trend, allowing designers and manufacturers to create intricate patterns faster and more efficiently than ever before. The technology enables fashion brands to implement a 'see-now, buy-now' strategy, where consumers can immediately purchase garments they see, effectively negating the current fatigue shoppers experience with traditional retail models and increasing barriers for fast fashion brands attempting to copy designs. The rise of personalization has led to a significant transformation in production timelines, with digital fabric printing offering immediate execution compared to traditional screen printing's two to three-month timeline.
The digital textile printing market is experiencing robust growth globally, with India being a key player in the Asia-Pacific region. The Indian digital printing market is expected to grow at a substantial CAGR of 13% between 2023 and 2033, fueled by the robust performance of the textile sector and the presence of well-established textile mill clusters in the region. India has over 1,000 digital fabric printing services in operation, with expectations of a considerable increase during the forecast period. The adoption of dye-sublimation digital printing on polyester fabric, with its high printing speeds of 15,000 to 20,000 sq/m, is a significant driver for market expansion. Factors such as cost-effectiveness, durability and rapid printing speeds position digital textile printing as a prominent player in India’s dynamic textile industry over the next decade.
The presence of a tech-savvy generation in India, along with significant players at the forefront of technological advancements, contributes to the industry’s growth and competitiveness. Digital textile printing offers benefits such as customization, cost efficiency and environmental sustainability, making it a preferred choice in the evolving market landscape. The direct to fabric (DTF) printing process is the leading driver of market growth, accounting for 45.6% of the market share, followed by direct to garment printing at 33.9% and dye sublimation printing at 12.1%. In the global digital textile printing market, the fashion industry holds a commanding share of 43.4%. Digital textile printing has become a game-changer in the fashion industry, enabling faster production, customization and unique design capabilities, while reducing inventory costs and facilitating a faster response to fashion trends.
Pros and strengths
Full-fledged digital textile ecosystem: The company has strategically developed a full-fledged and comprehensive business model that covers the entire value chain of digital textile printing, allowing it to maintain control over product quality, operational coordination, and customer satisfaction. The company is engaged across key segments of the digital textile printing ecosystem, including the import and distribution of advanced digital textile printing machines, supply of consumables such as high-performance inks, in-house manufacturing of sublimation paper, and providing digital textile printing across polyester, cotton, viscose, and blended fabrics.
Nationwide presence and rapid service support: The company has built a well-distributed presence across India through strategically located regional offices and service hubs in key textile manufacturing centers such as Surat, Amritsar, Panipat, Ludhiana, Delhi, Erode, Mumbai, Tirupur, Kolkata, and Varanasi. This geographic footprint allows it to provide prompt on-site technical assistance, timely delivery of spare parts, and a steady supply of consumables, helping customers minimize production delays and maintain workflow continuity. By maintaining service infrastructure close to major textile hubs, it is able to reduce operational disruptions caused by machine servicing needs or supply chain delays.
Advanced manufacturing facility and supply chain control: A key strength of the company lies in its well-established in-house manufacturing capabilities and structured supply chain management. It operates a dedicated sublimation paper manufacturing facility, which supports consistent quality, dependable supply, and cost efficient production. This vertical integration reduces reliance on external vendors, improves cost control, and helps maintain quality standards across consumables. Beyond consumable production, it has developed in-house digital textile printing infrastructure that allows it to offer job-work digital textile printing across various technologies, including sublimation, reaction, position, both-side print, fluorescent, and foil printing, suitable for a range of fabric types such as polyester, cotton, viscose, and blended materials.
Risks and concerns
Dependent on limited suppliers for raw material supply: The company depends on a limited number of suppliers for raw materials. The company has procured 74.07%, 94.70% and 42.60% of its raw material supply from top 10 suppliers in FY25, FY24 and FY23 respectively. Any interruption in the availability of raw materials could adversely impact its operations. Further, any failure by its suppliers to provide raw materials to it on time or at all, or as per its specifications and quality standards could have an adverse impact on its ability to meet its manufacturing and delivery schedules.
Geographical constrain: The majority of the company’s product and services sales is concentrated in the regions namely, Gujarat and Punjab. For the period ended for Fiscal 2025, 2024 and 2023 its revenue from sale of products and services in Gujarat, Maharashtra and Punjab accounted for 90.63%, 93.32%, and 92.34% of its revenue from operations, respectively any adverse developments affecting its operations in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.
Business is subject to seasonal fluctuations: The company’s business is seasonal in nature, with higher sales volumes during specific periods, such as festive seasons, weddings, and other cultural events. As a result, its revenue and cash flows are often concentrated in certain months of the year, which could lead to fluctuations in its financial performance across different quarters. The demand for digitally printed fabrics, increase significantly during festive seasons and wedding seasons in India and other markets with a large Indian diaspora. However, during non-festive or off-peak periods, it may experience a slowdown in orders, leading to under-utilization of its manufacturing capacities, lower sales volumes, and reduced profitability in those periods.
Outlook
True Colors imports and distributes digital textile printers and supplies products for the digital textile printing industry. The company offers digital textile printing solutions, including machines, inks, and services, targeting businesses like exporters, manufacturers, designers, and entrepreneurs. The company has advanced manufacturing facility and supply chain control. On the concern side, the company does not have long-term agreements with a majority of its customers. Any changes or cancellations to its orders or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition. Moreover, the company derives majority of its revenue from trading of Ink and digital printing machine business unit and any reduction in the demand of such segment could have an adverse effect on its business, results of operations and financial conditions.
The company is coming out with a maiden IPO of 66,99,600 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 181-191 per equity share. The aggregate size of the offer is around Rs 121.26 crore to Rs 127.96 crore based on lower and upper price band respectively. On performance front, in the FY25, the company’s total revenue from operation was Rs 23,365.62 lakh, which is increased by 45.96% in compare to total revenue from operations of Rs 16,008.24 lakh in FY24. Moreover, PAT is Rs 2,469.38 lakh for FY25 as compared to Rs 824.57 lakh in FY24, a surge of around three-fold.
In a bid to support its long-term growth objectives and strengthen its positioning in the digital textile printing sector, the company is gradually expanding its reach across new geographies and customer segments, both within India and internationally. The company has diversified its offerings to serve a wider customer base, which includes apparel exporters, garment manufacturers, fabric dealers, and private labels that require reliable digital textile printing solutions and related services. As part of this initiative, the company is extending the footprint of its machine division to meet emerging demand in various textile hubs across the country. By offering digital textile printing machines, specialized inks, and comprehensive post-sales technical support, it aims to reinforce its role as a dependable solution provider to textile businesses.
