Indigo Paints IPO Subscribed 6.9 Times On Second Day Amid High Investor Interest
A sample of paint pours into a bucket from the nozzle of a paint tinting machine in Gwalior. (Photographer: Udit Kulshrestha/Bloomberg)

Indigo Paints IPO Subscribed 6.9 Times On Second Day Amid High Investor Interest

Retail and high net worth investors continued to lap up shares of Indigo Paints Ltd., deriving the optimism from the success of recent public offerings at a time Indian equities are scaling new peaks.

The issue by the decorative paintmaker was subscribed 6.9 times as of 5:00 p.m. on Jan. 21, according to data available on the bourses. The IPO will close on Jan. 22.

Subscription details:

  • Institutional investors: 3.8 times
  • High net worth individuals: 5.3 times
  • Retail investors: 9.5 times
  • Employees: 6.9 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 has 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 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.

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