Indigo Paints IPO: Key Things To Know

January is proving to be a warm month for the IPO market. The two IPOs that are opening in the third week of January have sent the temperature soaring. IRFC IPO is opening on January 18, 2021 (apply here), and Indigo Paints IPO will open on January 20, 2021. If you are interested in Indigo Paints IPO, then read on. In this blog, we will discuss all details related to the offer, like Indigo Paints IPO launch date, Indigo Paints IPO band, and more.

About The Company: Position, Sector, Financials

Indigo Paints is a leading name in the segment of producing water-based decorative paints. From a modest beginning in 2000, the company has grown to become the fifth-largest player in the sector, manufacturing almost all categories of decorative paints like enamels, emulsions, wood coatings, primers, distempers, cement paints, and more. It has also played a pioneering role in producing products like metallic emulsion, bright ceiling coat emulsion, exterior laminate, exterior and interior acrylic laminate, and the like. 

The company has recorded strong growth in different categories of products. Per the latest financial statements, its sales grew from 26.68 percent in 2018 to 28.62 during fiscal 2020. In Q2 of FY21, it clocked PTA (profit after tax) of Rs 272.05 million. 

Company Strengths 

• Well-diverse product portfolio with strong brand presence in different categories of products 
• Extensive network in tier-1, tier-2 cities, and metros
• Strong band equities 
• Three manufacturing plants, strategically located in Rajasthan, Kerala, and Tamil Nadu
• Experienced promoters with vast experience in the domain

Indigo Paints IPO Details 

Indigo Paints IPO is the second IPO of the new year. Here are the critical details of the offer for interested investors. 

• The offer comprises fresh equities and offer for sale shares from promoter Hemant Jalan and investor Sequoia Capital through its two funds
• Indigo Paints IPO shares will issue in the price band of Rs 1,488-1,490
• In the upper price band, the issue size is expected to fetch Rs 1,170.16 crores, from the sale of Rs 300 crores worth of fresh equities and Rs 870.16 crores through an offer for sale shares
• The issuer has reserved half of the issue for qualified institutional buyers, 35 percent is set aside for retail buyers, and 15 percent for non-institutional investors 
• There is a reservation of up to 70,000 equities for eligible employees at a discount of Rs 148 per equity  
• Proceeds from the sale of fresh shares will go towards financial general corporate expenses and expansion of the Tamil Nadu manufacturing unit 
• The subscription window for the offer opens on January 20, 2021. The three days subscription period will conclude on January 22, 2021
• Bidding for anchor investors opens on January 19, 2021
• Kotak Mahindra Capital Company, Edelweiss Financial Services, and ICICI Securities are appointed the book-running managers for the issue

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