Indigo Paints IPO Date, Price, Review, Details

Indigo Paints IPO opens on Jan 20, 2021, and close on Jan 22, 2021; to raise ₹ 1176 crores with a fresh issue of ₹ 300 crores and an Offer for Sale of ₹ 876 crores at a price band of ₹ 1488 to ₹ 1490 per equity share. 

Company Overview

Incorporated in 2000, Indigo Paints is engaged in manufacturing paints and is the fastest growing amongst the top 5 paint companies in India. It is the fifth-largest company in the Indian decorative paint industry in terms of revenue from operations for Fiscal 2020. The company manufactures various products, including interior emulsions, exterior emulsions, enamels, putties & primers, and sleek wood coatings.

The company have achieved this position in a highly competitive Indian decorative paint industry on the back of the multi-pronged approach. This includes developing differentiated products to create a distinct market in the paint industry, building brand equity for a primary consumer brand, creating an extensive distribution network, and installing tinting machines across the dealer network.

As of Sept 30, 2020, the company have an extensive distribution network across 27 states and seven union territories. It owns and operates three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu). The company is going to expand its Pudukkottai facility to include a water-based manufacturing unit.

Industry Analysis

The decorative paints segment represents around 74% of the overall paint market in India. It includes wall finishes for interior and exterior use, enamels, wood finishes and ancillary products such as primers and putties. The decorative segment has grown at a CAGR of 11.5% from Fiscal 2014 to Fiscal 2019, driven by the increase in consumption of paints in Tier 2 – 4 Cities, that account for nearly half the total sales. The Indian decorative paints market is anticipated to grow at a CAGR of approximately 13% in terms of value and 10.2% in volume through 2024.

Company’s Promoters

Hemant Jalan, Anita Jalan, Parag Jalan, Tara Devi Jalan, Kamala Prasad Jalan and Halogen Chemicals

Qualitative Factors

• Track record of consistent growth in a fast-growing industry with significant entry barriers.
• Its differentiated products lead to greater brand recognition and enable expansion into a complete range of decorative paint products.
• It is focussing on brand-building initiatives to build brand equity gradually.
• Have an extensive distribution network across 27 states and seven union territories for good brand penetration.
• Leveraged brand equity and extensive distribution network to populate tinting machines.
• Have strategically located manufacturing facilities with close proximity to raw materials.
• Have a well-qualified and professional management team with a committed employee base.

Objects of the Offer

• To fund capital expenditure for expansion of Pudukkottai manufacturing facility by setting up an additional unit adjacent to the existing facility in Tamil Nadu.
• Purchase of tinting machines and gyroshakers.
• For repayment/prepayment of all or certain borrowings.

Financials of Indigo Paints IPO

Comparison with Listed Peers

Indigo Paints IPO Issue Details

Indigo Paints IPO Bid Details

Indigo Paints IPO Lot Size and Price for RII

Source: Indigo Paints RHP

Also Read:

• IPO Full Form: Difference between IPO, OFS and FPO
• IPO Historical Data
• Kalyan Jewellers IPO Detailed Analysis
• IRFC- Full Review, Date, Price, Details
• Upcoming IPO India: Issues, Lot Size and Tentative Dates