Mukul Agarwal Buys 1.62% Stake in True Colors, Lifting Shares 10%
Ace investor Mukul Agarwal acquired a 1.62% stake in True Colors during the quarter ended March 31, purchasing nearly 4 lakh shares. The move triggered a 10% surge in the stock, which hit a high of Rs 179.15 on the day of the disclosure. True Colors, a provider of digital textile printing solutions, listed on the BSE SME platform in September 2025 below its IPO price of Rs 191.
Investor Confidence Signals Strength in Niche Sector
Mukul Agarwal, who publicly holds 73 stocks with a net worth exceeding Rs 6,369 crore, added True Colors to a portfolio that includes names like J Kumar Infraprojects, Allcargo Logistics, and Ceat. His investment arrives as the company trades at a discount to its issue price, reflecting market caution toward recent SME listings. Such stakes from established investors often serve as endorsements, drawing attention to firms in specialized areas like digital textile printing.
Company Roots in Fast-Evolving Textile Technology
Founded in October 2021, True Colors imports and distributes digital textile printers while supplying inks and services for the industry. It targets exporters, manufacturers, designers, and entrepreneurs with complete printing solutions. The SME IPO, launched on September 23, 2025, raised Rs 128 crore through a fresh issue of 57 lakh shares worth Rs 108.86 crore and an offer for sale of 10 lakh shares at Rs 19.10 crore.
Robust Financials Underpin Growth Potential
True Colors posted a standalone net profit of Rs 24 crore for the quarter, marking 184% year-on-year growth from Rs 8.5 crore. Revenue climbed 46% to Rs 234 crore from Rs 161 crore a year earlier. These figures highlight demand for digital textile technologies, which enable precise, efficient production compared to conventional methods, positioning the firm amid industry shifts toward automation.
Market Reaction Points to Broader SME Trends
The stock's jump follows shareholding data compiled by Trendlyne, underscoring how disclosures influence SME valuations. Trading below IPO levels remains common for such listings, yet strong earnings and investor interest could support recovery. Agarwal's entry may attract further capital to digital textile players, aligning with global moves toward sustainable, tech-driven manufacturing.
