Indigo Paints is one of the fastest-growing paint companies in India and in terms of revenue, it is the 5th largest company in the decorative paint industry. Indigo Paints is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints. The size of the decorative paints industry in 2019 was Rs 40,300 crore, and as per research by Frost & Sullivan, Indigo Paints had a market share of about 2 per cent. As of September 30, 2020, it own and operate three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.`
Indigo Paints Ltd. IPO
Wants To Apply Online
Selling Promoter – Hemant Jalan
| Objects of the issue | • Repayment Funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility. • Purchase of tinting machines and gyroshakers Repayment/prepayment of all or certain of our borrowings • General corporate purpose |
| Issue Size | Issue Size – 1170 Crore
Offer for Sale- 58,40,000 shares Fresh Issue- Rs.300 Crore Employee reservation – 70,000 Shares |
| Face value |
Rs.10 Per Equity Share |
| Issue Price | Rs. 1488 – Rs. 1490 |
| Bid Lot | 10 shares |
| Listing at |
BSE, NSE |
| Issue Opens: | 20th January 2021 – 22nd January 2021 |
| QIB | 50% of Net Issue Offer |
| Retail | 35% of Net Issue Offer |
| NIB | 15% of Net Issue Offer |
Check Indigo Paints Ltd. IPO Allotment Status
Indigo Paints Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
- To Indigo Paints Limited IPO Allotment Status
- Go to Application Status
- Select IPO as Indigo Paints Ltd. IPO
- Enter your PAN Number or Application Id or DP Client Id.
Indigo Paints Ltd. IPO Allotment Status also available on BSE India
Indigo Paints Ltd. IPO
Application Form
Financial Performance:
Shareholding Pattern:
Strengths:
Strengths:
- Large product portfolio with differentiated products
- Well-proven, and consistent growth track record
- Strong brand equity, Extensive network distribution
- Strategically located manufacturing facilities
Key Highlights:
- Revenue from operations of the company have grown by 16.65% between Fiscal 2019 to Fiscal 2020, against the range of (8.8)% to 4.9% recorded by the top four paint companies in India.
- The sales from differentiated products are continuously growing as it was 26.68% in 2018 and increased to 28.62% in fiscal 2020.
- Derived a significant portion of revenue from sales in the state of Kerala. In Fiscal 2020 Kerala represented 34.56% of revenue from operations.
- The company has slightly lower EBITDA margin at 14.6% in FY20 as compared to its top competitors due to high spend on Advertisement.
- Advertisement and sales promotion expenses in 2020 has been relatively high and represented 12.65% of revenue from operations as against of the top four paint companies was in the range of 3% to 5.0% in Fiscal 2020.
Risk Factors:
- An inability to protect, strengthen and enhance existing brand could adversely affect business prospects and financial performance of company.
- Engaged in a highly competitive business and any failure to effectively compete could have a material adverse effect.
- Not having long-term arrangements with dealers could negatively affect business and results of operations.
Outlook:
The decorative paint market is expected to grow at a CAGR of 13% while the industrial paint market is expected to grow at a CAGR of 9.9% by 2024. Emulsions are the largest and among the fastest growing product segment within the Indian decorative paint industry. 85% sales of the company come from towns with a population of under 3 lacs. These were the towns that were not affected much by Covid. Revenue of the Company degrew by just 4.81% as against (19%) to (30%) of the top four paint companies in India. Asian paints and Berger paints are the close peers of the company trading at the price-to-earnings ratios of 109 and 147 respectively. At the higher end of the price band of Rs. 1490, the stock will be available at a PE multiple of 120x on FY21E annualised Post issue EPS, demanding higher valution as the company is growing faster than the industry. We would recommend subscribe to this IPO considering future prospects of the company.
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DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s updates & other related information Subscribe our research plan