Indigo Paints to Launch IPO

Indigo Paints to Launch IPO
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Indigo Paints is coming out with its initial public offering for subscription on January 20. The offer will close on January 22. There is a reservation of 70,000 equity shares for subscription by eligible employees. The public issue comprises a fresh issue of Rs 300 crore and an offer for sale of 58.40 lakh equity shares. The offer for sale consists of 21.65 lakh equity shares by SCI Investments V, 20.05 lakh equity shares by Sequoia Capital India Investments, and 16.7 lakh equity shares by promoter Hemant Jalan. The price band is Rs 1,480-1,490 per share for the public issue. One can bid for a minimum of 10 equity shares and in multiples of 10 equity shares thereafter.

Offer opens:  January 20, 2021

Offer Closes on:  January 22, 2021

Price Band: Rs 1,488 – 1,490

Fresh issue:  Rs 300 crore and

Offer for sale:  58.40 lakh shares

Reservation for employees: 70,000 shares

(A discount of Rs. 148 per Equity Share is being offered to Eligible Employees)

Indigo Paints is the fifth-largest company in the decorative paint industry in terms of revenue from operations for FY2020. The company sells its products under the brand of ‘Indigo’, through its distribution network across 27 states and seven union territories and ex-cricketer Mahendra Singh Dhoni is its brand ambassador.

The company owns and operates three manufacturing in Kochi (Kerala) and Pudukkottai (Tamil Nadu)  and one in Jodhpur (Rajasthan). The aggregate estimated installed production capacity is 1,01,903 kilolitres per annum for liquid paints and 93,118 metric tonnes per annum (MTPA) for putties and powder paints. The company will utilise funds for the expansion of the manufacturing facility at Pudukkottai by setting up another facility, purchase of tinting machines and gyroshakers and repayment of borrowings. The company also plans to expand capacity at Pudukkottai. The proposed installed production capacity of the expansion unit is 50,000 KLPA.

This would be the second IPO in calendar 2021.

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IE&M Team
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