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Indigo Paints IPO opens on 20 January, to raise Rs 1,000 crore

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Indigo Paints IPO opens on 20 January, to raise Rs 1,000 crore

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The initial public offering (IPO) for Indigo Paints will be open for subscription on January 20, 2021 and close on January 22.

Indigo Paints IPO opens on 20 January, to raise Rs 1,000 crore
The initial public offering (IPO) for Indigo Paints will be open for subscription on January 20, 2021 after it received a nod from market watchdog Securities and Exchange Board of India (SEBI) earlier in January. The Indigo Paints IPO will finally close on January 22.
The Sequoia Capital-backed company filed preliminary papers with SEBI for the IPO in November last year.
SEBI has approved Indigo Paints’ plan to raise about Rs 1,000 crore through the public issue from the capital markets. The IPO comprises fresh issuance of shares of Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by Investor Selling Shareholder Sequoia Capital through its SCI Investments IV and SCI Investments V and Promoter Selling Shareholder, Hemant Jalan. The company had disclosed this information in draft red herring prospectus (DRHP) filed with SEBI.
The Pune-based company said that the net proceeds from the issue will be used for expansion of the prevailing manufacturing facility at Tamil Nadu’s Pudukkottai and for purchasing tinting machines and gyro shakers. It will also be used for repayment as well as a prepayment of borrowings.
The price band will be between Rs 1,480 and Rs 1,500 per share. The minimum bid (lot size) will be 10 shares and the face value will be Rs 10 per share.
Indigo Paints reported a net profit of Rs 27.21 crore at the end of September 2020. The revenue from the operation was at Rs 259.42 crore. During the financial year 2020, the company posted a net profit of Rs 47.82 crore and revenue of Rs 624.79 crore.
Indigo Paints has three strategically located manufacturing facilities in the country, one each located in Rajasthan, Kerala and Tamil Nadu. It is a big wide distribution network in 27 states primarily in Kerala, Bihar, Jharkhand, Tamil Nadu, West Bengal, Uttar Pradesh, Chhattisgarh and Odisha.
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