Indigo Paints soars 84% in stellar market debut

The initial public offering to raise around ₹1,176 crore was subscribed 117 times with a price band of ₹1,488– Rs1,490 in the three-day share sale that closed on 22 January

Indigo Paints soars 84% in stellar market debut

It received bids for 64.58 crore shares against an offer size of 55.18 lakh shares.

Indigo Paints' Rs 1,170-crore initial share-sale last month garnered an overwhelming response from investors and was subscribed 117 times.

Mumbai: Pune based, Indigo Paints Limited, one of the fastest growing amongst the top five paint companies in India, whose IPO opened on January 20, 2021 and closed on January 22, 2021 listed on the BSE and NSE at a 75 % premium.

Nirali Shah gave subscribe call to Indigo Paints for listing gains and said,"Indigo Paints has made its brand name despite strong entry barriers due to experienced players such as Asian Paints".

189.57 times subscription was made for the portion reserved for Qualified Institutional Buyers (QIBs), while 263.05 times subscription was made for the non-institutional investor category and the retail portion was subscribed 15.93 times.

The stock settled at Rs 3,118.65 on BSE, rising 109.31 percent over the issue price and gaining 19.60 percent over the opening price of Rs 2,607.50. During the day, the stock hit a low of Rs 2,428.20 on the BSE and Rs 2,436.05 on the NSE.

India has seen robust responses to consumer-focused IPOs and market debuts in recent months, as the stock market galloped to record highs on strong foreign inflows, boosted by coronavirus vaccine hopes and abundant liquidity in global markets. The stock was in huge demand during the three-day share sale via IPO as it was subscribed a whopping 117 times, data from National Stock Exchange showed.

The company's market value expanded to ₹12,188 crore after the listing.

Indigo Paints proposed to utilize the net proceeds of the share sale by allocating ₹150 crore towards funding capital expenditure for expansion of its existing manufacturing facility at Pudukkottai, Tamil Nadu, by setting up an additional unit adjacent to the existing facility.

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