Indigo Paints looks to raise $203m from Indian IPO, fixes price band

Photo: Russn_fckr / Unsplash

Pune-based Indigo Paints Limited on Thursday said that it will open its initial public offering (IPO) on 20 January to raise around 1490 crore. The price band has been set at 1488– 1,490 per equity share for the three-day share sale that will end on 22 January.

The IPO comprises a fresh issuance of equity shares aggregating to 300 crore by the company and an offer for sale of up to 5,840,000 shares by Sequoia Capital India Investments IV and SCI Investments V and promoter Hemant Jalan.

The company plans to utilise the net proceeds of the share sale by allocating 150 crore towards funding capital expenditure for expansion of its existing manufacturing facility at Pudukkottai, Tamil Nadu, by setting-up an additional unit adjacent to the existing facility.

Another 50 crore will be utilised towards purchase of tinting machines and gyroshakers, and 25 crore towards repayment/prepayment of all or certain of company’s borrowing and balance towards general corporate purposes.

Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited and ICICI Securities Limited are the book running lead managers (BRLMs) to the offer.

Indigo Paints is one of the fifth largest company in the Indian decorative paint industry in India in terms of its revenue from operations for FY20. Headquartered in Pune, Indigo Paints offers a range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.

As on September, the company owned and operated three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala), Pudukkottai (Tamil Nadu). These facilities had an aggregate installed production capacity of 101,903 kilo litres per annum (“KLPA”) for liquid paints and 93,118 metric tonnes per annum (“MTPA”) for putties and powder paints as of September. The company has an extensive distribution network across 27 states and seven union territories as of September.

Indigo paints have outperformed the organised paint industry by growing at 15.8% in last year, from 4031 crores of sales in FY2018 to 6264 crore in FY2020.

“Indigo paint is well placed to outperform the industry in future, we have a positive outlook for Indigo paints IPO,” Yash Gupta Equity Research Associate, Angel Broking Ltd said.

The article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.