January, 2021 is quickly shaping up to be a great month for IPO issues. As many as three companies have decided to issue their shares to the public for subscription. One among the three is Indigo Paints Ltd. If you’re interested in getting to know more about the Indigo Paints Ltd IPO details, you’ve come to the right place. Here’s a quick look.
About the company
Indigo Paints Ltd. first started its operations in the year 2000. Since then, the company has grown by leaps and bounds. In fact, it is now one among the fastest growing companies in the paint industry. The company has a vibrant and diversified product portfolio that comprises a wide range of paints including emulsions, enamels, distempers, and cement paints. In addition to that, the company also manufactures putties, primers, wood coatings, and stainers.
All of the company’s diverse products are manufactured through its three manufacturing facilities located in Pudukkottai (Tamil Nadu), Kochi (Kerala), and Jodhpur (Rajasthan). Thanks to its strong distribution network, Indigo Paints Ltd. enjoys a strong market share in both Tier 1 and Tier 2 cities. The company also seems to be financially strong with its sales growing from 26.68% in FY 2018 to around 28.62% in FY 2020 and its net profit growing from 26.87 crores in FY 2019 to around 47.8 crores in FY 2020.
Indigo Paints Ltd IPO details
Now that you’ve been briefed about the company, let’s take a look at some of the important details of this upcoming IPO, including the Indigo Paints Ltd IPO date and the Indigo Paints Ltd IPO share price band.
Indigo Paints Ltd IPO date
The company’s upcoming IPO issue has been slated to open up to the public on January 20, 2021. After staying open for 2 days, the issue is slated to come to a close on January 22, 2021.
Indigo Paints Ltd IPO issue size
The total issue size of the new IPO from Indigo Paints Ltd consists of both a fresh issue of shares and an Offer for Sale (OFS) from the promoters of the company. Around 5,840,000 equity shares of the company will be sold through the OFS component of this issue. The complete and detailed breakup of the promoters and the number of equity shares being sold by them through the OFS route of this IPO are as follows:
- Sequoia Capital India Investments IV - 20,005,000 equity shares
- SCI Investments V - 2,165,000 equity shares
- Hemant Jalan - 1,670,000 equity shares
The total issue size of the Indigo Paints Ltd IPO also consists of an employee reservation portion. Around 70,000 equity shares are especially reserved for purchase by eligible employees of the company.
Indigo Paints Ltd IPO share price band
The company has fixed the share price band of the IPO at around Rs. 1,488 to Rs. 1,490 per share. Considering the fact that the company’s equity shares’ face value is just Rs. 10 per share, around Rs. 1,478 to Rs. 1,480 is being collected as equity share premium.
Indigo Paints Ltd IPO listing
The IPO is proposed to be listed on both the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE). The company has also received in-principle approvals from both the concerned stock exchanges in this regard.
Indigo Paints Ltd IPO objectives
The objectives of the IPO as mentioned by the company in its prospectus are as follows.
- For meeting the capital expenditure requirements for expansion of its manufacturing facility in Pudukkottai, Tamil Nadu.
- For meeting the expenses in relation with the purchase of tinting machines and gyroshakers.
- For repaying certain or all borrowings made by the company.
- For general corporate purposes.
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