Indigo Paints' Rs 1,170.16 crore initial public offering (IPO) opens for subscription today i.e. January 20, 2021. This is the second public issue to hit the primary markets in the new year, after the ongoing Indian Railway Finance Corporation IPO. The maiden public issue of Indigo Paints will remain open for bidding until January 22, in the price band of Rs 1,488-1,490 a share. The shares of Indigo Paints will be listed on the BSE Sensex and NSE Nifty on February 2, 2021.
Indigo Paints IPO consists of a fresh issue of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital and Hemant Jalan.
Investors can bid for a minimum one lot of 10 shares and in multiples, extending up to 13 lots.
The Pune-headquartered Indigo Paints will use the IPO proceeds to expand its manufacturing plant at Pudukkottai in Tamil Nadu, buy tinting machines and gyro shakers, and to repay / prepay borrowings.
Indigo Paints produces a range of decorative paints at its manufacturing facilities in Rajasthan, Kerala and Tamil Nadu.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the IPO.