BackIndigo Paints IPO: Price band set at ₹1,488-1490. Details here
At the upper end of the price band, Indigo Paints IPO is expected to fetch ₹1,170
PremiumSequoia Capital-backed Indigo Paints has fixed a price band of ₹1,488-1,490 a share for its initial share-sale, which will open for public subscription on January 20 and conclude on January 22. The anchor investors' portion will be open for subscription on January 19, Indigo Paints said in a virtual press conference.
The IPO comprises fresh issuance of stocks aggregating to ₹300 crore and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital, through its two funds -- SCI Investments IV and SCI Investments V -- and promoter Hemant Jalan.
At the upper end of the price band, the public issue is expected to fetch ₹1,170.16 crore, which comprises ₹300 crore through fresh issuance of shares and ₹870.16 crore through offer-for-sale.
Pune-based Indigo Paints, set up in 2000, started out with the manufacture of lower-end cement paints, and gradually expanded its range to cover most segments of water-based paints like exterior emulsions, interior emulsions, distempers and primers.
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors, 15% for non-institutional bidders and there is a reservation of up to 70,000 equity shares for subscription for employees, who will get a discount of ₹148 per equity share to the offer price.
Indigo Paints proposes to utilise the net proceeds for funding capital expenditure at its manufacturing facility in Pudukkottai, Tamil Nadu, besides repayment and prepayment of the company's borrowings and general corporate purposes.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.
The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.
As of September 30, 2020, the company has three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.
Also, next week, the ₹4600 crore IPO of Indian Railway Finance Corporation (IRFC) will hit the markets. IRFC IPO will be the first by a non-banking financial company (NBFC) in the public sector. IRFC is the first NBFC in the PSU sector that is going public. The IPO will open on January 18 and close on January 20. IRFC is issuing shares at a price band of ₹25 to ₹26. The lot size is 575.
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