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Let’s have a detailed review of the company and analytics of the Indigo Paints IPO release date, IPO offer price, subscription, Indigo Paints Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Face ValueRs 10
Price BandRs 1480 to Rs 1490
Listing AtBSE, NSE
Min. Order Quantity10 Eq Shares
Listing Date Feb 2, 2021
Offer for SaleRs MILLION
Fresh IssueRs 3,000 MILLION
IPO SizeRs 11,760 MILLION
Tick Size1

Indigo Paints IPO is listed at Rs.1478 – Rs.1480 premium. Check out the live share price by clicking on the below link.


Indigo Paints IPO – Summary

Indigo Paints IPO

They manufacture a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.

They also identify potential product needs from customers and introduce differentiated products to meet these requirements, and create a distinct market for their products.

For instance, they are the first company to manufacture and introduce certain differentiated products in the decorative paint market in India.

As the first company in India to develop certain products, they have had an early mover advantage in the markets they are present in, which has allowed them to realize relatively higher margins for these products compared to the rest of their product portfolio.

The Promoters of this company are HEMANT JALAN, ANITA JALAN, PARAG JALAN, KAMALA PRASAD JALAN, TARA DEVI JALAN AND HALOGEN CHEMICALS PRIVATE LIMITED. The lead managers to the issue are Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited, ICICI Securities Limited and the Registrar to this issue is KFin Technologies Private Limited.


Indigo Paints IPO Date

The opening and the closing date of IPO of Indigo Paints Limited is Jan 20, 2021 and Jan 22, 2021.


Indigo Paints Limited IPO Subscription

Day / DateQIBNIIRIIEmployeeTotal Subscription
1st Day – Jan 200.11x1.10x3.29x0.73x1.90x
2nd Day –  Jan 213.86x5.38x10.35x1.81x7.36x
3rd Day – Jan 22189.57x263.05x15.93x2.50x117.02x
Shares Offered or Net Issue1,556,6901,167,5142,724,19870,0005,518,402

The shares subscribed by the public will be updated here.


Indigo Paints Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Indigo Paints Limited IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

Basis of Allotment FinalizationJan 28, 2021
Refunds InitiationJan 29, 2021
Credit of Shares to Demat AccountFeb 1, 2021
Share Listing DateFeb 2, 2021

Indigo Paints IPO Price Band / Cash Price

The face value of each share is Rs.10, but the price band of the IPO is Rs 1480 to Rs 1490. 


Indigo Paints IPO Equity Size

This Initial Public Issue of [●] Equity Shares of Rs.10 each for cash at a price of Rs 1480 to Rs 1490 per equity share aggregating to Rs.[●] million.


Indigo Paints IPO Share Offering

Fresh Issue: The Fresh Issue of [●] Equity Shares by their Company, aggregating to Rs.3,000 million,

Issue Size: [●] Equity Shares of Rs.10 each, aggregating to Rs.[●] million

Offer for Sale: Offer for sale consists of Up to 5,840,000 Equity Shares of face value of Rs.10 each, aggregating Rs.[●] million.


Indigo Paints IPO – Live Performance

The listing date of this IPO is Feb 2, 2021. You can check the live performance of the IPO here, only after it is listed on exchanges.


Indigo Paints IPO Grey Market Premium

The Indigo Paints Limited IPO Grey Market Premium price is Rs 800-810, the Kostak rate is Rs 800 and the Subject to Sauda is Rs. 8000. 


Indigo Paints IPO – Company Overview

They are the fastest growing amongst the top five paint companies in India. They are the fifth largest company in the Indian decorative paint industry in terms of their revenue from operations for Fiscal 2020.

The company has achieved this position in a highly competitive Indian decorative paint industry on the back of their multi-pronged approach.

This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for their primary consumer brand of “Indigo”, creating an extensive distribution network across 27 states and seven union territories as of September 30, 2020, and installing tinting machines across their network of dealers.

To create demand for their differentiated products, they initially tapped into Tier 3, Tier 4 Cities, and Rural Areas, where brand penetration is easier and dealers have greater ability to influence customer purchase decisions. They subsequently leveraged this network to engage with dealers in Tier 1 and Tier 2 Cities and Metros as well.

Indigo Paints IPO Business Verticals

The Differentiated range of products offered by the company includes Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions, Floor Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel.

These products are differentiated based on the end-use they cater to, as well as added properties that they possess. They believe that their differentiated growth strategy and focused execution has continued to deliver profitable growth to their stakeholders. They have been consistently profitable in the last three fiscals, despite increasing their marketing spends.


Indigo Paints IPO – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & millions)
30-Sep-2031-Mar-20Mar-1931-Mar-18
Total Assets4,112.914,219.593,731.832,973.94
Total Revenue2,602.436,264.365,372.624,031.05
Total Expense2,250.185,590.095,032.473,892.35
Profit After Tax272.05478.15268.70128.62

Earnings per Equity Share (in Millions)

30-Sep-2031-Mar-20Mar-1931-Mar-18
Basic6.03*10.615.982.88
Diluted
5.97*10.495.902.82

Revenue generated, i.e. invoicing as per contracted price, from sales of Indigo Differentiated Products represented 26.68%, 27.58%, and 28.62% of their total revenue from operations in Fiscal 2018, 2019 and 2020, respectively.

Their revenue from operations have grown at a CAGR of 41.9% between Fiscal 2010 and Fiscal 2019, compared to the range of 12.1% to 13.1% recorded by the top four paint companies in India

Despite Fiscal 2020 being impacted by COVID-19, their revenue from operations have grown by 16.65% between Fiscal 2019 to Fiscal 2020, against the range of (8.8)% to 4.9% recorded by the top four paint companies in India.


Indigo Paints Limited IPO – Promoters

The Promoters of this company are:

  1. HEMANT JALAN,
  2. ANITA JALAN,
  3. PARAG JALAN,
  4. KAMALA PRASAD JALAN,
  5. TARA DEVI JALAN AND
  6. HALOGEN CHEMICALS PRIVATE LIMITED

List of Related Parties (Key Managerial Personnel)

  • Thundiyil Surendra Suresh Babu, Chief Operating Officer
  • Chetan Bhalchandra Humane, Chief Financial Officer
  • Sujoy Bose, Company Secretary and Compliance Officer

Competitive Strengths of Indigo Paints Limited

  • Track record of consistent growth in a fast growing industry with significant entry barriers
  • Differentiated products leading to greater brand recognition and enabling expansion into a complete range of decorative paint products
  • Focused brand-building initiatives to gradually build brand equity
  • Extensive distribution network for better brand penetration
  • Leveraged brand equity and distribution network to populate tinting machines
  • Strategically located manufacturing facilities with proximity to raw materials
  • Well-qualified and professional management team with a committed employee base

Indigo Paints Limited IPO Offer Details or Issue Details

 Particulars No. Of Equity Shares
 Equity Shares Offered Up to [●] Equity Shares aggregating up to Rs.1,176.00 Cr
of which:
Fresh issueUp to [●] Equity Shares aggregating up to Rs.3,000
million
Offer For Sale
Up to 5,840,000 Equity Shares aggregating up to Rs.[●] million
The Offer consists of:
Employee Reservation PortionUp to [●] Equity Shares, aggregating toRs [●] million
Net OfferUp to [●] Equity Shares, aggregating to Rs [●] million
The Net Offer consists of:
QIB PortionNot more than [●] Equity Shares
 Retail Investors Portion Not less than [●] Equity Shares
 Non-Retail Investors PortionNot less  than [●] Equity Shares
 Equity Shares outstanding prior to the Issue29,022,175 Equity Shares
 Equity Shares outstanding after the Issue[●] Equity Shares

Indigo Paints IPO Issue Object

Their Company proposes to utilise the Net Proceeds towards funding the following objects:

1. Funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu (the “Proposed Expansion”) by setting-up an additional unit (the “Additional Unit”) adjacent to the existing facility;
2. Purchase of tinting machines and gyroshakers;
3. Repayment/prepayment of all or certain of their borrowings; and
4. General corporate purposes.

Business strategies of Indigo Paints Limited

  • Continue to focus on developing differentiated products to grow market share
  • Further strengthen their brand to consolidate their position as a leading paint company in India
  • Deepen penetration in existing markets and expand presence in select new territories by populating tinting machines
  • Expand their manufacturing capacities

Indigo Paints Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Track record of consistent growth in a fast growing industry with significant entry barriers;
  • Differentiated products leading to greater brand recognition and enabling expansion into a complete range of decorative paint products;
  • Focused brand-building initiatives to gradually build brand equity;
  • Extensive distribution network for better brand penetration;
  • Leveraged brand equity and distribution network to populate tinting machines;
  • Strategically located manufacturing facilities with proximity to raw materials; and
  • Well-qualified and professional management team with a committed employee base.

The relevant quantitative factors are:

Basic EPSRONW (%)NAV (Rs.)
31-Mar-2010.6124.2743.69
31-Mar-195.9818.22
31-Mar-182.8810.09

Indigo Paints IPO : Competitive Peers

Face Value (Rs.)P/EEPS Basic (Rs.)Return on Net Worth (%)NAV per share (Rs.)
Indigo Paints Limited*10[●]10.6124.27%43.69
Listed Peers
Asian Paints Limited178.7728.2527.39%105.61
Berger Paints India Limited196.816.7624.66%27.39
Kansai Nerolac Paints Limited154.489.6713.72%69.77
Akzo Nobel India Limited1038.3452.1319.18%271.85

Indigo Paints IPO Lead Managers

Lead Managers
ICICI Securities Limited

Edelweiss Financial Services Limited

Kotak Mahindra Capital Company Limited

Indigo Paints IPO Registrar to offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 247 Park, L B S Marg, Vikhroli (West), Mumbai
400 083 Maharashtra, India
Tel: +91 22 4918 6200
E-mail: indigopaints.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance ID:
indigopaints.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

Indigo Paints IPO – Other Details

  • Statutory Auditor – S R B C & CO LLP
  • Legal Counsel to the Company – Cyril Amarchand Mangaldas
  • Bankers to the Company –  HDFC Bank Limited


Indigo Paints Limited IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

 


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    Indigo Paints Limited IPO News

    News 1 – Indigo Paints Limited IPO DRHP Download

    News 2 – Indigo Paints IPO RHP Download


    Indigo Paints IPO Review FAQs

    Ques – What is the Issue Size of Indigo Paints IPO?

    Answer – The Company is making an initial public offer of [●] equity shares. You can refer to the article for further information of the offer for sale and fresh issue size.

    Ques – What is the Price band?

    Answer – The price band for this particular IPO ranges between NA. As far as the face value of the share is of concern, it is Rs.10 per share.

    Ques – What is the Indigo Paints IPO Open Date?

    Answer – The opening and closing date for the IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.

    Ques – What is the IPO Allotment Date?

    Answer – We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA and share listing date is on NA.

    Ques – What is the IPO Listing Date?

    Answer – Shares of this company shall be listed in the exchanges BSE as well as NSE. Date when the listing shall be done is NA.

    Ques – Who is the Registrar of this IPO?

    Answer – One of the reputed registrars are managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on a lookout for.

    Ques – Who is the Promoter of this Company?

    Answer – Check out the promoters of the company HEMANT JALAN, ANITA JALAN, PARAG JALAN, KAMALA PRASAD JALAN, TARA DEVI JALAN AND HALOGEN CHEMICALS PRIVATE LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.

    Ques – What is GMP of Indigo Paints IPO?

    Answer – We have obtained the GMP of this IPO and it is Rs. 1.10-2. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.

    Ques – Is Indigo Paints IPO good for Investment?

    Answer – A brand so widely adopted, it has made a significant place in the market, which are vividly featured via the strong company financials. This results into a great investment opportunity for the investors.

    Ques – What is the PAT of this Company?

    Answer – We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2020 is 478.15, 2019 is 268.70, 2018 is 128.62. PAT from September 2020 is 272.05.


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