Indigo Paints IPO Open Today: The IPO of the country’s 5th largest paint company Indigo Paints is being launched on Wednesday 20 January. Indigo Paints IPO will be open from January 20 to January 22 to raise Rs 1170 crore. Even before being listed on the stock market, Indigo Paints has been seen trading at a premium price in the gray market. Experts are assuming that the IPO of Indigo Paints will get a good response from the investors as well. They are expected to be listed on this IPO premium. However, some experts have suggested investing in it only for listing gains.
What should be invested
Brokerage House IIFL Securities Has also advised investing in indigo paints. According to the brokerage house, the company’s earnings per share can grow by 48 per cent annually during FY 2020-23. At the same time, sales growth is expected to be 20 percent CAGR and EBITDA 36 percent. Which will be better than other paint companies. The brokerage has also described the valuation of the company as better.
Brokerage House Angel Broking According to this, one should invest in an IPO for a longer period. Brokerage firm Anand Rathi Financial Limited Has also advised investing in IPO. According to the brokerage, the valuation of Indigo Paints is only 98.5 times its last 12 months earnings. While the valuation of the shares of peer companies is high.
Nirali Shah, research analyst at SAMCO Securities Has advised investing in the IPO of Indigo Paints for listing gain. He says that Indigo Paints is the fastest growing paint company in the country. The company has a strong portfolio of products. The company’s brand name is strong. The company’s customer base is also strengthening with an aggressive marketing strategy. The company’s balance sheet is clean and strong. Even after this, there are some challenges regarding setting up a wide distribution presence. Its valuation also looks somewhat expensive from the sector.
Hit the gray market
Indigo Paints has been an IPO hit in the gray market. Ever since the announcement of the IPO by the company, it was shown to trade at a premium rate of 50 per cent of the fixed issue price. Its premium in the gray market on January 15 was around 840-850 rupees. This means that on that day it was selling for between Rs 2,340-2,330.
Price band Rs 1480-1490
Indigo Paints has fixed the price band for its IPO at Rs 1480–1490; This issue will open for investment on January 20 and will close on January 22.
At least how much investment
Indigo Paints IPO will have a lot of 10 shares. That is, investors have to invest at least 10 shares or Rs 14900. The maximum can be invested in its multiplier.
Sales of 58.40 lakh shares
The promoters and investors of the company will sell 58.40 lakh shares. In this, the company will issue a fresh issue of about Rs 300 crore. Through this IPO, Sequoia Capital will reduce its stake in Indigo Paints. Apart from this, some promoters are also planning to sell stake. Promoters of the company include Hemant Jalan, Anita Jalan, Parag Jalan, Kamala Prasad Jalan, Tara Devi Jalan and Halogen Chemicals Pvt.
About the company
Indigo Paints is among the top paint companies in the country. The company sells its paints under the Indigo brand name. The company’s business is steadily growing. Lorge Products portfolio is one of the company’s strengths. Track record is better. Brand equity is strong. The network distance market is also strong. The company’s distribution network is spread across 27 states. Former Indian cricketer Mahendra Singh Dhoni is its brand ambassador. The lead managers for the company’s IPO are Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities.
Financial of the company is better. In the quarter ended September 30, the company’s total assets were close to Rs 412 crore. At the same time, revenue was more than C 260 crore and profit was 27 crore.