Indigo Paints IPO is going to open on 20 January 2021. the company aiming a total issue size of ₹1,170.16 crore through this ipo.
Also read: IPO List 2021: a complete list of IPOs in 2021
Indigo Paints Limited
IP is the fifth-largest company in the Indian decorative paint industry in terms of revenues and is the fastest growing amongst the top five paint companies in India. The company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties, and cement paints. The company identifies potential product needs from customers and introduces differentiated products to meet these requirements. Revenue generated from sales of Indigo Differentiated Products represented 26.68%, 27.58%, and 28.62% of its total revenue from operations in FY2018, FY2019, and FY2020, respectively.
As of 30 September 2020, the company owned and operated three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 101,903-kiloliters per annum (KLPA) for liquid paints and 93,118 metric tonnes per annum (MTPA) for putties and powder paints. Indigo Paints intends to expand its manufacturing capacities at the Pudukkottai facility in Tamil Nadu, by adding capacities to manufacture water-based paints to cater to the growing demand for these paints. The proposed installed production capacity of the expansion unit is 50,000 KLPA and it is expected to be operational during FY2023.
Objective of the Issue
- To meet the capital expenditure requirements for manufacturing facility expansion at Pudukkottai, Tamil Nadu
- For purchasing tinting machines and gyroshakers.
- To repay all or certain borrowings.
- For general corporate purposes.
Competitive strength
- Large product portfolio with differentiated products.
- Well-proven, and consistent growth track record.
- Strong brand equity.
- Extensive network distribution.
- Strategically located manufacturing facilities.
Basic details about the company
| Full name | Indigo Paints Limited |
| Sector | Chemicals |
| Industy | Paints |
| Company Website | www.indigopaints.com |
Dates to remember
| IPO Open | 20 January 2021 |
| IPO Close | 22 January 2021 |
| Basis of Allotment | 28 January 2021 |
| Refunds date | 29 January 2021 |
| Credit to Demat Account | 01 February 2021 |
| Listing Date | 02 February 2021 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,176.00 Crores |
| Number of shares offered | 27,356,615 Shares |
| Face value | ₹10 per equity share |
| Price band | ₹1,488-₹1,490 per equity share |
| Retail portion | 35% |
| Lot size | 10 Nos |
| Minimum application | 1 lot – 10 shares |
| Maximum application | 13 lot – 130 shares |
| Minimum application amount | ₹14,900 |
| maximum application amount | ₹193,700 |
| Listing Exchange | BSE, NSE |
Financial summary
| Indigo Paints’ financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 403.1 | 537.3 | 626.4 | 260.2 |
| Expenses | 389.2 | 503.2 | 559.0 | 225.0 |
| Net income | 13.2 | 27.0 | 47.7 | 27.2 |
| Net margin (%) | 3.3 | 5.0 | 7.6 | 10.5 |
Valuation of Indigo paints (as of FY2020)
| Earnings Per Share (EPS) | ₹10.49 |
| Price/Earnings (PE ratio) | 141.85 – 142.04 |
| Return on Net Worth (RONW) | 24.27% |
| Net Asset Value (NAV) | ₹43.23 per share |
Company Promoters
- Hemant Jalan
- Anita Jalan
- Parag Jalan
- Kamala Prasad Jalan
- Tara Devi Jalan
- Halogen Chemicals Private Limited
| Pre Issue Share Holding | 60.05% |
| Post Issue Share Holding | 54% |
Indigo paints IPO Lead Managers
- Kotak Mahindra Capital Company Limited
- Edelweiss Financial Services Limited
- ICICI Securities Limited
Registrar of Indigo paints IPO
Link Intime India Private Limited C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: indigopaints.ipo@linkintime.co.in Website: http://www.linkintime.co.in
Company Contact Details
Indigo Paints Limited
Indigo Tower, Street-5,
Pallod Farm-2, Baner Road,
Pune 411 045, Maharashtra
Phone: +91 20 6681 4300
Email: secretarial@indigopaints.com
Website: www.indigopaints.com
Indigo Paints IPO Subscription Status
| Category | Day 1 | D 2 | D 3 |
| QIB | 0.11x | 3.86x | 189.57x |
| HNI | 1.10x | 5.31x | 263.05x |
| RII | 3.29x | 9.50x | 15.93x |
| EMP | 0.73x | 1.81x | 2.50x |
| Total | 1.90x | 6.92x | 117.02x |
Indigo paints IPO Allotment Status
Indigo Paints IPO allotment status will be available on Link Intime’s website.
Click on this link to get allotment status.
Final thoughts
Indigo paints IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision
Happy Investing
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