Indigo Paints IPO

One of India's fastest-growing paint companies, Indigo Paints' IPO will open on January 20, 2021. The Rs 1,176.00 crore IPO offers will contain both fresh scrips and offer for sale equities from the current promoters. The issuer plans to launch the shares in the price band of Rs 1488-1490 per share. A tentative listing date for the Indigo Paint IPO is February 2, 2021.

INDIGO PAINTS LIMITED INFORMATION

In terms of revenue, Indigo Paints is the fifth-largest company in the segment of decorative paints. Started out in 2000, the company had a modest beginning, producing inexpensive cement paint. Presently, the company produces paints in almost all categories of water-based paints.

Indigo Paints has three manufacturing units, one each in Rajasthan, Kerala, and Tamil Nadu (Pudukkottai). According to DRHP, the company plans to enhance the production capacity of the Pudukkottai plant with the proceeds from the IPO.

Between FY2018 and FY 2020, Indigo Paints has nearly doubled its profit margin from 3.2 percent in FY18 to 7.7 percent in FY20 and well placed to outperform its peers in the near future. Strong brand equity value, well-diverse product portfolio, an extensive network of distributors, and experienced promoters are some of the key strengths of the company. According to the latest financial statements, Indigo Paints clocked a PTA of Rs 272.05 million during Q3 of FY2020.

Competitive strength

• A wide product portfolio of different paint products
• Robust performance and growth; the company is the fifth-largest in India in producing water-based decorative paint products
• Strong market position and an extensive network of distributors
• Strong financial and growth

How to apply for Indigo Paints IPO

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