Indigo Paints, the fifth-largest decorative paint company in India, has fixed a price band of ₹1,488-1,490 a share for its initial share-sale check all the details here:
About Company
The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.
As of September 30, 2020, the company has three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.
Subscription Date
It will open for public subscription on January 20 and conclude on January 22.
The anchor investors’ portion will be open for subscription on January 19.
IPO details
Indigo Paints public issue will consist of a Rs 300 crore fresh issue of equity shares and an OFS of 58.4 lakh equity shares.
The existing shareholders looking to sell part of their stakes in Indigo Paints include venture capital firm Sequoia Capital, SCI Investments, and promoter Hemant Jalan.
Lot Size
One can bid for a minimum of 10 equity shares and in multiples of 10 equity shares thereafter.
The Face value of the equity shares has been set at Rs 10 apiece by Indigo Paints.
Reservation
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors, 15% for non-institutional bidders.
There is a reservation of up to 70,000 equity shares for subscription for employees, who will get a discount of ₹148 per equity share to the offer price.
Share Holding after IPO
Sequoia is looking to sell 20 lakh equity shares of the 85.34 lakh shares it currently owns, SCI Investments will offload 21.65 lakh stocks from the 92.08 lakh currently held.
Hemant Jalan owns 1.02 crore equity shares in the firm and will reduce his stake by 16.7 lakh shares.
Intermediaries
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.
Fund Utilisation
The company will utilise funds from its fresh issue for the expansion of the manufacturing facility at Pudukkottai in Tamil Nadu by setting up another facility (Rs 150 crore) nearby, purchase of tinting machines and gyroshakers (Rs 50 crore), repayment of borrowings (Rs 25 crore); and general corporate purposes.
Company’s Financial
The company reported a net profit of Rs 27.21 crore at the end of September last year.
Revenue from operation during the same period stood at Rs 259.42 crore.
During the financial year 2020, Indigo Paints reported a revenue of Rs 624.79 crore and a net profit of Rs 47.82 crore.
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