The preliminary public providing (IPO) of Sequoia Capital-backed Indigo Paints opened for subscription earlier at the moment and was oversubscribed inside a number of hours itself. So far, the difficulty was subscribed over 1.89 occasions by the tip of first day of bidding. It acquired a requirement for 1,04,67,410 shares throughout each the inventory exchanges in opposition to 55,18,402 shares on provide.
Indigo Paints manufactures a spread of ornamental paints and has an in depth distribution community throughout the nation.
The Indigo Paints IPO will probably be out there for subscription until Friday, January 22, 2021, and the worth band of the Pune-based paint producer has been fastened at Rs 1,488-1,490 per share. At the higher finish of the worth band, the general public concern is predicted to fetch Rs 1,170.16 crore.
Investors who want to subscribe to Indigo Paints IPO can bid in plenty of 10 fairness shares and multiples thereafter. At the higher value band, they are going to be shelling out Rs 14,900 to get a single lot of Indigo Paints. The shares will probably be listed on each BSE in addition to the National Stock Exchange (NSE).
All candidates of Indigo Paints IPO additionally should notice that the cut-off time for UPI mandate affirmation is Monday, January 25, 2020, upto 12:00 pm. If they fail to take action then their utility will not be thought-about.
The Indigo Paints IPO includes recent issuance of shares aggregating to Rs 300 crore and an offer-for-sale of as much as 58,40,000 fairness shares (together with anchor portion of 23,35,020 fairness shares) by Sequoia Capital via its two funds — SCI Investments IV and SCI Investments V — and promoter Hemant Jalan.
The anchor buyers’ portion was open for subscription on Tuesday and Indigo Paints collected Rs 348 crore from anchor buyers, information company PTI reported earlier at the moment.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the lead managers to the Indigo Paints IPO whereas Link Intime India is the registrar to the difficulty.
The proceeds from the IPO can be used to broaden the corporate’s present manufacturing facility at Pudukkottai in Tamil Nadu, buying tinting machines and gyro shakers and compensation/prepayment of borrowings.
Geojit Financial Services, IIFL Securities and LKP Securities of their respective analysis notes have all really useful “Subscribe” to the provide.
IIFL Securities in its IPO notice mentioned, “As per our estimates, Indigo Paints would yield a valuation of 46x FY23E EPS (on upper price band) vs. 63x for Asian Paints and 77x for Berger Paints. A combination of higher growth and lower valuations makes for an exciting investment opportunity. We recommend Subscribe to the IPO, given favorable growth valuation equation.”
LKP Securities in its analysis report famous that, “Indigo is the fastest growing paint company which has grown at a much faster pace in the last decade than any other paint company in india. The company has adopted a differentiated approach to market and sell its products in the industry which is dominated by the larger players. Indigo has been able to expand its EBIDTA/PAT margins from 6.4%/3.2% in FY18 to 14.6%/7.7% on the back of economies of scale and better raw material sourcing. The company’s ROE & ROCE has also improved significantly to be at par with the industry leaders in the last five years.”