Indigo Paints is the fifth largest company in the Indian decorative paint industry in terms of revenues and is the fastest growing amongst the top five paint companies in India.
Company has achieved this position in a highly competitive Indian decorative paint industry on the back of our multi-pronged approach.
This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for our primary consumer brand of “Indigo”, creating an extensive distribution network across 27 states and seven union territories.
The company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints. The company identifies potential product needs from customers and introduces differentiated products to meet these requirements.
Revenue generated from sales of Indigo Differentiated Products represented 26.68%, 27.58%, and 28.62% of its total revenue from operations in FY2018, FY2019 and FY2020, respectively.
As of 30 September 2020, the company owned and operated three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) with an aggregate estimated 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.
Indigo Paints intends to expand its manufacturing capacities at Pudukkottai facility in Tamil Nadu, by adding capacities to manufacture water-based paints to cater to the growing demand for these paints. The proposed installed production capacity of the expansion unit is 50,000 KLPA and it is expected to be operational during FY2023.
Company Financials
| Particulars | FY2018 | FY2019 | FY2020 | H1 FY2021 |
| Revenue | 403.1 | 537.3 | 626.4 | 260.2 |
| Expenses | 389.2 | 503.2 | 559.0 | 225.0 |
| Net income | 13.2 | 27.0 | 47.7 | 27.2 |
| Net margin (%) | 3.3 | 5.0 | 7.6 | 10.5 |
Objects of the Issue
- Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.
- Funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu (the “Proposed Expansion”) by setting-up an additional unit adjacent to the existing facility.
- Purchase of tinting machines and gyroshakers.
- Repayment/prepayment of all or certain of our borrowings.
- General corporate purposes.
Indigo Paints IPO Details
| IPO Opening Date | JAN 20, 2021 |
| IPO Closing Date | JAN 22, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | [1488] to [1490] per equity share |
| Market Lot | 10 Shares |
| Min Order Quantity | 10 Shares |
| Listing At | BSE, NSE |
| Issue Size | ₹1169 Cr. |
| Offer for Sale | 78,40,000 Eq Shares of ₹10 |
Indigo Paints IPO – Schedule
| IPO Open Date | JAN 20, 2021 |
| IPO Close Date | JAN 22, 2021 |
| Finalization of Basis of Allotment | JAN 28, 2021 |
| Initiation of Refunds | JAN 29, 2021 |
| Credit of Shares to Demat Account | FEB 01, 2021 |
| IPO Listing Date | FEB 02, 2021 |
Indigo Paints IPO Lots Size & Price (Retail)
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 10 | 14,900 |
| Maximum | 13 | 130 | 1,93,700 |
Indigo Paints IPO: How To Apply
Promoters play a very important role in raising much-needed business revenue.
Apply For Indigo Paints IPO Through ASBA
First, you should know what ASBA is. ASBA stands for Restricted Application Support. It is an application by the bank to apply for an IPO.
You apply with ASBA through the bank because initially, the bank covers the cost of purchasing the IPO. This amount is deducted from your account only after receiving IPO share shares in your Demat account.
All the major banks in the country are expanding the ASBA center. There are about 30 banks on the list, some of which are IDBI Bank Limited, Citi Bank, Punjab National Bank, etc.
The center may be expanded once they have been authorized to do so. These banks block the corresponding amount until the IPO allocation process is finalized.
Now, most of you are probably thinking about how to use the Indigo Paints IPO with ASBA. The process can be completed online or offline for your convenience.
Apart from this, you can also bid for an Indigo Paints IPO through your stockbroker’s online portal (such as Zerodha, Edelweiss, Motilal Oswal, etc.)
Company Contact Information
| Indigo Paints Limited Indigo Tower, Street-5, Pallod Farm-2 Baner Road, Pune 411 045 Phone: 91 20 6681 4300 Email: secretarial@indigopaints.com Website: http://www.indigopaints.com/ |
