Everything you need to know about Indigo Paints IPO
The price band of Indigo Paints IPO has been fixed at Rs 1,488-1,490 per share for the initial share sale. The minimum lot size is 10 equity shares at Rs 14,900.
Hyderabad: As the three days initial public offering (IPO) of Indigo Paints opened for public subscription, the shares of paint companies traded firm at the bourses on Wednesday. The IPO comprises a fresh issue of Rs 300 crore, and an offer for sale of 58,40,000 equity shares by promoter and investors.
The company has been subscribed 83 per cent on its first day of the bidding so far.
The price band of Indigo Paints IPO has been fixed at Rs 1,488-1,490 per share for the initial share sale. The minimum lot size is 10 equity shares at Rs 14,900.
Indigo Paints is a Pune-based company has widespread production and distribution networks through 27 states and seven union territories and holds over 2 per cent share in the paints industry. It is said to be the 5th largest decorative paints company in India with a strong portfolio of differentiated products.
Here are the IPO details of Indigo Paints:
The IPO is expected to fetch Rs 1,170 crore, which comprises Rs 300 crore through fresh issuance of shares and Rs 870 crore through OFS.
The promoter and promoter group shareholding will decrease from over 60 per cent to 54 per cent after the public issue. The shareholding is expected to increase to 46 per cent.
The offer includes a reservation of up to 70,000 equity shares for subscription by the company employees. Eligible employees can subscribe at a discounted rate of Rs 148 per share.
The proceeds from IPO will be used for expansion of manufacturing facility at Tamil Nadu’s Pudukkottai, purchase of tinting machines and gyro shakers, and repayment/prepayment of borrowings, said the company.
Indigo Paints shares are to be listed on BSE Sensex and NSE Nifty from February and the book running lead managers are Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities.
Referring to the rapid growth of the company, experts are recommending subscribing to the issue and are even citing the cost-controlling measures, growing opportunities in the housing segment, and expansion plans of Indigo Paints.
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