Indigo Paints shares listing on BSE, NSE today: Grey market premium strong, bumper debut likely
Shares of Indigo Paints will be listed on BSE and NSE on Tuesday. Indigo Paints is an innovative paint company and fifth largest decorative paints manufacturer in the country. It offers a wide range of interior and exterior wall paint colours, enamels and wood coatings for homes and offices.
Indigo Paints' Rs 1,170-crore initial share-sale garnered an overwhelming response from investors. The IPO received bids for 64.58 crore shares against an offer size of 55.18 lakh shares, translating into a subscription of 117.02 times. 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. The company mopped up Rs 348 crore from anchor investors.
The Rs 1,170.16-crore IPO comprised 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. The price band was fixed at Rs 1,488-1,490 a share for the initial share-sale, which was open for public subscription during January 20-22.
Indigo Paints shares listing
Indigo Paints shares allotment process was completed on January 28. The refund process was initiated on January 29 for those who didn't get the IPO. The shares were credited in the Demat account of those who received the allotment was done on February 1.
Indigo Paints shares listing will be on the stock exchange will be done on February 2. It will be listed on both the BSE and NSE.
Indigo Paints shares grey market premium
Experts feel the listing premium of Indigo Paints could be around 50 per cent over the issue price, given the strong subscription its public offer received and revived market sentiment after the Budget.
In the grey market, the trading premium is around 60 per cent over its issue price. On February 1, the Budget day, it was trading around Rs 850-900 per share in the grey market against Rs 740-750 per share on January 31.
Indigo Paints fastest-growing paint company
Indigo Paints is also one of the fastest-growing paint companies in the country in terms of revenue. The company has grown at a 42% CAGR over the financial year 2010 to 2019 against a 12-13% CAGR recorded by top four players -- Asian Paints, Berger Paints, Nerolac, and Akzo. According to brokerage and research firm Motilal Oswal, the decorative Paints industry is a Rs 40,300 crore industry.
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. The company will utilise fresh issue proceeds for expansion of the existing facilities.
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