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Indigo Paints makes stellar debut

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Capital Market
Last Updated : Feb 02 2021 | 11:16 AM IST

Shares of Indigo Paints were trading at Rs 2525 at 10:15 IST on the BSE, at a premium of 69.46% or 1035 points over the initial public offer price of Rs 1490.

The stock was listed at Rs 2607.50, at a premium of 75% or 1117.5 points to the initial public offer (IPO) price. So far the stock hit a high of Rs 2756.30 and low of Rs 2475.20. On the BSE, 4.13 lakh shares were traded on the counter so far.

The initial public offer (IPO) of Indigo Paints was subscribed 117.02 times. The issue received bids for 64.57 crore shares as against 55.18 lakh shares on offer, according to the stock exchange data. The issue opened for subscription on 20 January 2021 and closed on 22 January 2021. The price band for the IPO was set at Rs 1488-1490 per share.

The non-institutional investors category was subscribed 263.05 times. The qualified institutional buyers (QIBs) category was subscribed 189.57 times. The retail individual investors category was subscribed 15.93 times.

The IPO consisted of fresh issue of equity shares aggregating to Rs 300 crore and an offer of sale of up to 58.40 lakh equity shares by the selling shareholders.

The net proceeds of the fresh issue are proposed to be utilized as Rs 150 crore towards funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility, Rs 50 crore towards purchase of tinting machines and gyroshakers, Rs 25 crore towards repayment/prepayment of all or certain of its borrowings and balance as general corporate purposes.

Ahead of the IPO, the company on 19 January 2021 allotted 23.35 lakh shares to 35 anchor investors at a price of Rs 1490 per share, aggregating to Rs 347.92 crore.

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Of the total anchor portion, about 33.34% was allotted to eight domestic mutual funds which applied through 18 schemes.

Further, about 11.5% of the total anchor portion was subscribed by the Smallcap World Fund and 4.9% of the same was subscribed by the Government of Singapore.

The company recorded net profit of Rs 27.21 crore and total income of Rs 259.42 crore in the six months ended on 30 September 2020.

Indigo Paints is the fastest growing and among the top five paint companies in India. It manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.

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First Published: Feb 02 2021 | 10:17 AM IST

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