Indigo Paints IPO
Indigo Paints IPO — date, price band, lot size & details 2021
Indigo Paints listed on 2 Feb 2021 at ₹2,607.5, 75% above the ₹1,490 issue price.
Indigo Paints makes decorative paints and was the fifth largest company in India's decorative paint industry by revenue in Fiscal 2020. Its total income was Rs 626.44 crore in FY2020.
Stock price
Indigo Paints is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 10 November.
- Open 20 Jan 2021
- Close 22 Jan 2021
- Allotment 28 Jan 2021
- Refund/credit 29 Jan 2021
- Listing 02 Feb 2021
Issue summary
The terms of the offer, as filed.
| IPO Dates | 20 to 22 Jan, 2021 |
|---|---|
| Price Band | ₹1488 – ₹1490 |
| Face Value | ₹10 |
| Lot Size | 10 Shares |
| Issue Size | ₹1169.12 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Employee Discount | Rs 148.00 per share |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 14,900 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 10 shares at the ₹1490 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10 | ₹14,900 |
| Retail (max) | 13 | 130 | ₹1,93,700 |
| S-HNI (min) | 14 | 140 | ₹2,08,600 |
| S-HNI (max) | 67 | 670 | ₹9,98,300 |
| B-HNI (min) | 68 | 680 | ₹10,13,200 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 6
- 01Total income rose from Rs 403.11 crore in FY2018 to Rs 537.26 crore in FY2019 and Rs 626.44 crore in FY2020.
- 02Profit after tax rose from Rs 12.86 crore in FY2018 to Rs 47.82 crore in FY2020.
- 03Profit after tax was Rs 27.21 crore in the six months to 30 September 2020 alone.
- 04Total borrowing fell from Rs 60.13 crore on 31 March 2019 to Rs 30.13 crore on 30 September 2020.
- 05Rs 50.00 crore of the fresh issue was set aside for tinting machines and gyroshakers for dealers.
- 06Differentiated products made up 28.62% of sales in Fiscal 2020, up from 26.68% in 2018.
Risks · 6
- 01The P/E was 141.9 at the upper band of Rs 1,490, based on pre-issue EPS of Rs 10.50.
- 02Rs 869.39 crore of the Rs 1,169.12 crore issue was offer for sale, so most of the money went to selling shareholders.
- 03It was only the fifth largest decorative paint maker by revenue in Fiscal 2020, so it competes with much larger rivals.
- 04Profit after tax was only Rs 26.87 crore in FY2019 on total income of Rs 537.26 crore, so margins were thin before FY2020.
- 05Total income of Rs 260.24 crore in the six months to 30 September 2020 was below half of the FY2020 figure of Rs 626.44 crore.
- 06Promoter holding fell from 60.05% before the issue to 54% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Indigo Paints offer document.
| Metric | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 | 31 Mar 2018 |
|---|---|---|---|---|
| Assets | 411.29 | 421.96 | 373.18 | 297.39 |
| Total Income | 260.24 | 626.44 | 537.26 | 403.11 |
| Profit After Tax | 27.21 | 47.82 | 26.87 | 12.86 |
| EBITDA | 48.09 | 90.99 | 54.09 | 25.80 |
| NET Worth | 197.05 | 147.46 | 127.46 | |
| Reserves and Surplus | 177.05 | 149.73 | 100.31 | 80.56 |
| Total Borrowing | 30.13 | 50.07 | 60.13 | 35.83 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Indigo Paints RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Indigo Paints IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹10.50 | ₹11.44 |
| P/E Ratio (x) | 141.90 | 130.24 |
| Market Cap at Offer Price (₹ Cr) | ₹3,861.23 | ₹3,543.96 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹1490 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹286.16 Cr of the issue is earmarked to named objects.
About the company
It was the first company in India to make some differentiated products, such as Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions and Floor Coat Emulsions. Sales of these products rose from 26.68% of sales in 2018 to 28.62% in Fiscal 2020.
The company first built demand in Tier 3 and Tier 4 cities and rural areas, then moved into larger cities. Its distribution covered 27 states and seven union territories on 30 September 2020, and it installs tinting machines at dealers. Cricketer Mahendra Singh Dhoni is its brand ambassador.
It has three plants, at Jodhpur in Rajasthan, Kochi in Kerala and Pudukkottai in Tamil Nadu. The IPO was Rs 1,169.12 crore, with Rs 299.73 crore of fresh issue and Rs 869.39 crore of offer for sale. Rs 150.00 crore was planned for expanding the Pudukkottai plant.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Indigo Paints IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
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Edelweiss Financial Services Ltd
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Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Indigo Paints?
The current Grey Market Premium is ₹800, or 54% over the issue price.
What is the Indigo Paints IPO price band?
₹1488 to ₹1490, on a face value of ₹10.
When is the allotment?
The basis of allotment is 28 January 2021, with listing on 2 February 2021.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
