Indigo Paints IPO subscribed 60 times on third day of bidding; NII bids at 153 times

Updated : January 22, 2021 02:22 PM IST

As of 1:55 pm, the reserved portion of non-institutional investors was subscribed the most, 153.21 times.

Overall, the IPO was subscribed 60 times on the third day of bidding.

The initial public offering (IPO) of Indigo Paints, the fifth-largest decorative paints company in India, was subscribed 60 times on the third day of bidding.

As of 1:55 pm, the reserved portion of non-institutional investors was subscribed the most, 153.21 times and that of qualified institutional buyers was subscribed 73.82 times. The portion set aside for retail investors has been subscribed 13.46 times and employees have put in 2.07 times bids against their reserved portion.

Most brokerage houses have recommended subscribing to Indigo Paints IPO on the back of the company's fast growth in the last decade compared to peers. Its expansion program, cost-controlling measures, and lowering of debt have also kept the analysts positive on the IPO.

It is the fastest-growing paints company in India in terms of revenues, in a highly oligopolistic paint market, said Nirali Shah, Senior Research Analyst, Samco Securities adding that financials have also been extremely strong for this paint player with minimal debt on its books.

Meanwhile, Anand Rathi believes that due to the lower valuations as compared to its peers, Indigo Paints is placed at an attractive valuation. It is also confident that the company will maintain the growth levels which is mirroring in the pricing of the IPO.

The IPO comprises of fresh issuance of Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by promoters as well as investors.

The offer will close today. The price band for the issue has been fixed at Rs 1,480 and Rs 1,500 per share. At the upper end of the price band, the IPO is expected to fetch Rs 1,170.16 crore.

The anchor book witnessed good response from investors, including global investors and domestic asset management companies.

Earlier this week, it announced that it has raised Rs 348 crore from 25 anchor investors. The Sequoia Capital-backed company informed bourses that it has allocated shares worth Rs 348 crore at Rs 1,490 per share to anchor investors.

The company will use Rs 150 crore from the proceeds of the fresh issue to expand its existing manufacturing facility at Pudukkottai, Tamil Nadu; Rs 50 crore to purchase equipment and Rs 25 crore to repay debt and general corporate purposes.

Published : January 22, 2021 02:22 PM IST

Indigo Paints IPO subscribed 60 times on third day of bidding; NII bids at 153 times

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