Indigo Paints IPO

The turn of the year has really brought upon new dawn on the Indian stock market. As many as 21 companies are looking at the prospect of floating their IPO this year. While we discuss the upcoming IPOs of 2021, Indigo Paints IPO remains a part of the talk.

The start has been in stark contrast to the gloom of last year.

Markets are liquid, the sentiment among investors looks to be full of hope, sensing the market situations, companies are turning to the public to raise money through the initial public offering route.

Among the list of companies is Indigo Paints, the popular paint manufacturer that has won over millions of Indian hearts for their quality paint solutions.

The company looks to go public as it needs to raise capital for putting its expansion plans to fruition. 

The success of recent IPOs last year has set the ground for Indigo Paints well, which now looks to offer 58,40,000 equity shares.

In other words, this looks like the perfect opportunity for investors to purchase stocks at the lowest prices.

The prospect of getting shares at a price lower than they would in the secondary market is too good to miss out on. Further, the shares purchased in an IPO are liquid in nature and can sell almost readily, so this gives investors an opportunity to meet their short term plans as well. 

With all the positive talk around, here, in this article, we take a look at all the information about the Indigo Paints IPO.

Indigo Paints IPO Review

Established in 2000, Indigo Paints has risen to be one of the biggest names in the Paints and Emulsions industry. The company filed its DRHP (Draft Red Herring Prospectus) with SEBI in November 2020. 

Indigo Paints mentioned the expansion of their manufacturing facility situated at Pudukkottai in Tamil Nadu as the objective of the filing for IPO. In addition, the objectives of listing this IPO are as mentioned below:

• For the expansion of the manufacturing plant at Pudukkottai, Tamil Nadu by establishing a new additional unit near the existing facility.
• Purchase of equipment such as – Tinting Machines and Gyroshakers;
• Repayment or prepayment of borrowings
• Other corporate purposes

The Indigo Paints IPO will be an entire book built to offer, with Kotak Mahindra Capital Company Limited, Edelweiss Financial Services, ICICI Securities being handed the book-running responsibilities. 

The IPO is made up of a fresh issue of Rs 300 crores and an offer for sale (OFS) of 58,40,000 equity shares of its shareholder firm Sequoia Capital.

The equity shares each have a face value of Rs 10.

The below table consists of all the Indigo Paints IPO details that will be useful to any interested investors:

 

As many as 58,40,000 equity shares with a face value of Rs 10 per equity share are on offer in the upcoming IPO. The shares will then be listed on both the major stock exchanges of India – NSE, BSE.

The Upcoming IPOs of 2021 are listed below:

 

IDFC Securities, HSBC Securities, ICICI Securities, and SBI Capital Markets Limited have been roped in as the book running lead managers to look over the issuance of shares during the IPO.

 

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Indigo Paints IPO Promoter 

The Indigo Paints IPO promoter group consists of individuals as well as a corporate entity. The whole promoter group’s equity share combines to make 94.26% of the entire equity share capital of the company. 

The below table shows the shareholding pattern of the promoters.

 

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Indigo Paints IPO Issue Date

The company filed its DRHP papers in November 2020 and is all set to launch its IPO on 20 Jan 2021. The offer will be a 3-day affair and will close on 22 Jan 2021.

 

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Indigo Paints IPO Market Lot

Indigo Paints IPO market lot size is 10 shares per lot. Thus, the minimum shares an investor can purchase is 10.

While on the other side, the investor can purchase a maximum of 130 shares or 13 lots during the offering.

 

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Indigo Paints IPO GMP

Indigo Paints IPO GMP (Grey Market Premium) is Rs 2,330–Rs 2,340 per share.

Grey Markets are unauthorized equity share distribution channels other than the regulated stock market. The price at which a listed company’s equity shares are traded in the grey market is the Grey Market Premium. 

Many might mistake Grey markets to be illegal, but that is not the case. Instead. Grey markets help investors predict the performance of an IPO.

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How To Apply For Indigo Paints IPO?

Apply for Indigo Paints IPO through the ASBA process. ASBA or Application Supported by Blocked Account, is a process developed by the Indian regulatory SEBI to help investors participate in IPO.

However, there are some requisites for applying for an IPO through ASBA. The first is that the investor needs to have a demat account. 

The second requirement is that the investor should have a savings account with the Self Certified Syndicate Banks (SCSBs). SCSBs are simply banks that adhere to the SEBI regulations.

If you are lacking on the first requirement, allow us the opportunity to help you with opening a Demat account. Fill in your Name and Contact Number in the form below.

 

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Apply For Indigo Paints IPO Through ASBA

Once the investor has ensured that they fulfill the ASBA requirements, then they may proceed to apply for Indigo Paints IPO Through ASBA. 

There are two methods – Online and Offline through which an individual can apply for IPO. 

We have discussed the steps of each process below:

Online Method

1. The investor will need to access the NSE official website and fill the ASBA form. 
2. The ASBA Form contains basic details such as –

• Name of the Applicant 
• PAN Number
• Demat Account Number 
• Bidding details such as Bid Quantity, Bid Price, etc. 

The ASBA form is an instruction to the bank to block the amount used for purchasing a company’s equity shares through an IPO until the shares are credited to the investor’s Demat account. 

3. The SCSB verifies all the details included in the form and then uploads the bid on the NSE ASBA system.

Offline Method

For applying for the Indigo Paints IPO offline, traders will need to visit their SCSB and fill the ASBA form. 

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Indigo Paints Company Information

Indigo Paints is one of the most prominent names operating in the Paints industry in India. The company, established in 2000, started off by manufacturing lower-end cement paints. 

Today, the company has widened its range of paint solutions to Primers, Interior Emulsions, Distempers, Exterior Emulsions. 

The company filed its DRHP papers with SEBI in November last year for generating funds for expanding its manufacturing facility in Pudukkottai in Tamil Nadu. 

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Conclusion

Indigo Paints IPO is another IPO on offer this season. The paint maker has established its name in the market and has plans for further expanding its business.

The company chose the IPO route for generating as many as Rs 1000 crores. The issue is made up of an offer for sale of 58,40,000 equity shares and a fresh issue of shares worth Rs 300 crores.

This IPO could be the best time to enter the stock market as the shares bought during an IPO are comparatively much cheaper.

Investors who are running a bit low on budget can most definitely benefit from the IPO, as the shares are likely to grow in value over time. 

Indigo Paints is offering 58,40,000 equity shares, each share having a face value of Rs 10. This might just be the opportunity that can help investors realize their long-term investment plans. 

The brand is a well-established name in the industry, and we expect their IPO to receive huge footfall. This IPO isn’t the one to be missed.

Investors can apply through the ASBA process, but for this, they will need a Demat account. If you don’t have one, do so immediately by leaving your Name and Contact Number with us in the form below.

Interested to open an account in order to invest in an IPO?

 

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