Home >Markets >Ipo >IRFC IPO subscribed 3.49 times on final day; Indigo Paints IPO subscribed 1.9 times on Day 1

Mumbai: The initial public offering (IPO) of state-owned Indian Railway Finance Corp. (IRFC) closed on Wednesday with a subscription of 3.49 times the shares on offer, while the IPO of Indigo Paints Ltd saw a subscription of 1.9 times on the first day of its share sale.

In the IRFC initial share sale, the portion reserved for retail investors was subscribed 3.66 times, while that reserved for employees saw 43.76 times subscription.

The portion set aside for non-institutional investors saw a subscription of 2.67 times and that of institutional investors was subscribed 3.78 times.

The 4,633-crore public issue comprises a fresh issue of 3,088.9 crore and an offer for sale of 1,544 crore by the government. The share sale was priced at 25-26 per share.

The public issue of Indigo Paints, which opened on Wednesday, was fully subscribed on the first day, receiving bids for 10.4 million equity shares against the offer size of 5.52 million shares, according to data available on the exchanges.

The retail investor portion saw a subscription of 3.29 times and that of non-institutional investors 1.1 times, while the employee portion received 73% subscription. The institutional investor portion was subscribed only 11% on the first day.

The company aims to raise 1,170 crore through its public issue.

“At the upper price band of 1,490, Indigo Paints is available at P/E of 130 times on an annualized basis on FY21E EPS of 11.4 and seems to be at a premium compared to the listed peers," analysts at Geojit Finacial Services said in an IPO note.

“Despite premium valuations, being the fastest growing paint company in India driven by developing a niche product to compete with market leaders, expansion plans, low debt and strong return profile with RoE of 25% in FY20 will make it an emerging player in the industry," it said.

The offer will close on Monday, 25 January, and the price band for the issue has been fixed at 1,488-1,490 per share.

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