Indigo Paints IPO allotment today
The allotment of Rs 1,170 crore initial public offer (IPO) of Indigo Paints will be announced on January 28 (Thursday). The Indigo Paints IPO market lot size is 10 shares. The price band was fixed at Rs 1,488-1,490 a share for the initial share-sale.
The IPO garnered an overwhelming response from investors and was subscribed 117.02 times. It received bids for 64.58 crore shares against an offer size of 55.18 lakh shares.
Initiation of refunds will begin on January 29 and shares will be credited to demat account on February 1. The listing is expected on February 2.
Indigo Paints grey market premium
According to reports, Indigo Paints shares were commanding a grey market premium of Rs 895-900 (60 per cent) at Rs 2,390 apiece over the issue price. Indigo Paints shares were quoting a GMP of Rs 750 apiece over the IPO price last week.
The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 189.57 times, while that of non-institutional investor category received 263.05 times subscription and retail portion was subscribed 15.93 times. From anchor investors, Indigo Paints mopped up Rs 348 crore.
The Rs 1,170.16-crore IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan.
Proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchasing of tinting machines and gyro shakers, and repayment/prepayment of borrowings.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.
The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country. As of September 30, 2020, the company had three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.
