Indigo Paints IPO Subscribed 117 Times On Final Day
A day labourer holds a paint roller in Noida, Uttar Pradesh, on Jan. 20, 2020. (Photographer: Prashanth Vishwanathan/Bloomberg)

Indigo Paints IPO Subscribed 117 Times On Final Day

Investor interest continued to remain high on the third day of the initial public offering of Indigo Paints Ltd., deriving optimism from the success of recent share sales at a time Indian equities are scaling new peaks.

The issue by the decorative paints maker was subscribed 117.02 times over the three days of its IPO, according to exchange data. The IPO closed on Jan. 22.

Subscription Details:

  • Institutional investors: 189.6 times.
  • High net worth individuals: 263.05 times.
  • Retail investors: 15.93 times.
  • Employees: 2.49 times.

Also read: Indigo Paints IPO: Here’s All You Need To Know

The paintmaker’s maiden offer comprises a fresh equity issue worth Rs 300 crore and an offer-for-sale of Rs 870.16 crore. Before the IPO, Indigo Paints had raised Rs 347.92 crore by issuing 23.4 lakh equity shares to anchor investors at Rs 1,490 apiece. The anchor allotment has been made to 25 entities, including eight mutual funds.

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.

Indigo Paints was India’s fifth-largest paintmaker by revenue from operations in the decorative paints segment in 2019-20. The company has built a distribution network across 27 states and seven union territories as of September 2020.

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