Indigo Paints IPO Review and Details

Indigo Paints IPO

There are some new IPOs scheduled to be launched in 2021. One of the  IPO is Indigo Paints Limited. It is going to be launched on 20th January 2021. 

Indigo Paints is one of the best developing paint companies in India, and when it comes to the revenue, it is the 5th largest firm in the decorative paint industry. IITian Hemant Jalan started indigo Paints in the year 2000 in Jodhpur. 

Indigo paints produce different types of decorative paints, such as enamels, emulsions, wood coatings, primers, putties, and cement paints.

Indigo paints were the first firm who started making different products in the painting industry. Here are the list of products

  • Metallic Emulsion, 
  • Tile coat emulsions, 
  • Bright ceiling coat emulsion, 
  • Floor coat emulsion, 
  • Dirtproof & waterproof exterior laminate, 
  • Exterior and interior acrylic laminate and 
  • PU super gloss enamel.

Their differentiated products’ sales had been continuously growing from 26.68% in 2018 increased to 28.62% in fiscal 2020. Indigo Paints has three manufacturing plants in India at different locations jodhpur, Kochi, and Pudukkottai. The company is planning to expand its business in Pudukkottai(Tamil Nadu) to produce water-based paints.

To create more demand for all their products, Indigo paints originally tapped into Tier 3, Tier 4 Cities, and Rural Areas, where brand promotions are more comfortable, and dealers can easily influence customer purchase decisions.

The company finally leveraged this network to mesh with Tier 1 and Tier 2 Cities and Metros dealers.

Company Strengths

  • It produces different types of products
  • It is maintaining consistent growth from the last three years
  • It has large network distribution
  •  The company has strategically set manufacturing plants at different locations 

Company Promoters:

  • Hemant Jalan, 
  • Anita Jalan, 
  • Parag Jalan, 
  • Kamala Prasad Jalan, 
  • Tara Devi Jalan, etc

Indigo Paints IPO Information

Indigo paints got the SEBI nod, at the beginning, of this month. The IPO is going to start from 20th January 2021 and close on 22nd January 2021.

Indigo Paints IPO Listing Date & Issue Price Details

Face ValueRs 10 Per Equity Share
Price BandRs 1488 to Rs 1490 per share
Listing atBoth BSE and NSE
IPO Open20th January 2021
IPO Close22nd January 2021
IPO SizeRs 1178 Crores (Approximately)
Retail Portion35%
Issue sizeRs 1176 Crores
Issue TypeBook Built Issue IPO
Equity5,840,000 Shares

Indigo Paints IPO Market Lot:

Min Lot Size10 shares
Min AmountRs 14900
Max Lot Size130 Shares
Max AmountRs 193700

Indigo Paints IPO Allotment Status

Basis of Allotment28th January 2021
Initiation of Refund29th January 2021
Credit to Demat Account01st February 2021
Ipo Share Listing 02nd February 2021

Purpose of Indigo Paints IPO

  • The company is planning to open a new production plant in Pudukkottai(Tamil Nadu) to produce water-based paints. The production unit in Tamil Nadu will have 50,000 KLPA capacity, and it will be open during FY2023.
  • The company returns are also used to buy tinting machines and Gyroshakers.
  • To clear debts
ParticularsAmount(Crores)
For New Production Plant150
For Buying Tinting machine and Guroshakers50
To clear Debts25
For General Corporate purpose75
Total300 Crores

Indigo Paints Financial Statement

31st March 201831st March 201931st March 202030 September 2020
Total Assets2973.943731.834219.594112.91
Total revenue4031.055372.626264.362602.43
Total Expenses3892.355032.475590.092250.18
Profit After Paying Tax128.62268.70478.15272.05

FAQs

How to buy an IndiGo paints IPO?

Indigo Paints is selling its stocks to the public via Initial Public Offer (IPO). Retail investors can also apply for IndiGo paint IPO via banks(using ASBA) or stockbroker(UPI).

Who is the owner of Indigo paints?

Hemant Jalan is the Owner of Indigo Paints Pvt Ltd

What is the share price of Indigo paints?

The share of Indigo pains is 125.2 (Pre-IPO) 130.7 (Post-IPO)

Which is the No 1 paint company in India?

Asian Paints Ltd. is the leading company in India with a turnover of Rs 193.50billion. It was founded in 1942.