Indigo Paints to launch IPO on Jan 20, value band set at Rs 1,488 – 1,490

New Delhi: Pune primarily based, Indigo Paints Limited (the “Company”), one of many quickest rising amongst the highest 5 paint firms in India and fifth largest firm within the Indian ornamental paint trade in India by way of its income from operations for FY20 (Source: F&S Report), will open the Bid/Offer interval in relation to its preliminary public providing of Equity Shares (the “Offer”/ “IPO”) on Wednesday, January 20, 2021.
The Bid/Offer interval will shut on Friday, January 22, 2021. The value band of the Offer has been mounted at Rs. 1,488 – Rs. 1,490 per Equity Share. The Company might, in session with the Book Running Lead Managers (the “BRLMs”), contemplate participation by Anchor Investors which shall be one Working Day previous to the Bid/Offer Opening Date.
The IPO includes a contemporary issuance of Equity Shares aggregating to Rs. 3,000 million by the Company (“Fresh Issue”) and a suggestion on the market of as much as 5,840,000 Equity Shares by Sequoia Capital India Investments IV and SCI Investments V (the “Investor Selling Shareholders”), and the promoter promoting shareholder, Hemant Jalan (the “Promoter Selling Shareholder” and along with the Investor Selling Shareholders, the “Selling Shareholders” and such providing of Equity Shares by the Selling Shareholders, the “Offer for Sale”).

The Offer features a reservation of as much as 70,000 Equity Shares for subscription by Eligible Employees of the Company (the “Employee Reservation Portion”). The Company and the Selling Shareholders in session with the BRLMs, are providing a reduction of Rs. 148 per Equity Shareto the Offer Price to Eligible Employees bidding within the Employee Reservation Portion.
The Offer much less the Employee Reservation Portion is known as the “Net Offer”. The Offer is being made by way of ebook constructing course of in accordance with Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 and Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”) and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, whereby no more than 50% of the Net Offer shall be allotted on a proportionate foundation to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), offered that the Company might, in session with the BRLMs, allocate as much as 60% of the QIB Portion to Anchor Investors on a discretionary foundation in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for home Mutual Funds, topic to legitimate Bids being acquired from home Mutual Funds at or above the Anchor Investor Allocation Price.

In the occasion of under-subscription, or non-allocation within the Anchor Investor Portion, the steadiness Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be obtainable for allocation on a proportionate foundation solely to Mutual Funds, and the rest of the Net QIB Portion shall be obtainable for allocation on a proportionate foundation to all QIBs, together with Mutual Funds, topic to legitimate Bids being acquired at or above the Offer Price. However, if the mixture demand from Mutual Funds is lower than 5% of the Net QIB Portion, the steadiness Equity Shares obtainable for allocation within the Mutual Fund Portion might be added to the remaining Net QIB Portion for proportionate allocation to QIBs.
Further, not lower than 15% of the Net Offer shall be obtainable for allocation on a proportionate foundation to Non-Institutional Bidders and never lower than 35% of the Net Offer shall be obtainable for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, topic to legitimate Bids being acquired at or above the Offer Price. Further, Equity Shares might be allotted on a proportionate foundation to Eligible Employees making use of beneath the Employee Reservation Portion, topic to legitimate Bids acquired from them at or above the Offer Price.
All potential Bidders (besides Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) course of offering particulars of their respective ASBA accounts, and UPI ID in case of RIBs utilizing the UPI Mechanism, if relevant, wherein the corresponding Bid Amounts might be blocked by the SCSBs or by the Sponsor Bank beneath the UPI Mechanism, because the case could also be, to the extent of respective Bid Amounts. Anchor Investors are usually not permitted to take part within the Offer by way of the ASBA course of.

The Company proposes to utilise the Net Proceeds as follows (i) INR 1,500 mn in direction of funding capital expenditure for growth of its present manufacturing facility at Pudukkottai, Tamil Nadu by setting-up a further unit adjoining to the prevailing facility; (ii) INR 500 mn in direction of buy of tinting machines and gyroshakers; (ii) INR 250 mn in direction of reimbursement/prepayment of all or sure of Company’s borrowings; and (iv) steadiness in direction of normal company functions.
The Equity Shares provided on this Offer are proposed to be listed at each BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, along with BSE, the “Stock Exchanges”) publish the itemizing. For the aim of the Offer, BSE is the Designated Stock Exchange.
Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited and ICICI Securities Limited are the BRLMs to the Offer. All capitalized phrases used herein and never particularly outlined shall have the identical which means as ascribed to them within the Red Herring Prospectus dated January 11, 2021 (“RHP”).