The allotment status of Indigo Paints' initial public offering (IPO) will be finalised on Thursday, January 28. The allotted shares will be credited in demat accounts by February 1, 2021. The shares are likely to be listed on February 2, 2021.
The Rs 1,170.16-crore public issue comprises of Rs 300 crore of fresh issuance of shares and Rs 870.16 crore of offer-for-sale by promoter Hemant Jalan and investors (Sequoia Capital India Investments IV and SCI Investments V).
The IPO was priced at Rs 1,488 to Rs 1,490 per equity share and was open for public subscription from January 20-22. The minimum order quantity was 10 shares and retail investors could apply for up to 13 lots.The share sale had received an overwhelming response from investors, and was subscribed 117 times. The company had garnered Rs 347.9 crore from 25 anchor investors ahead of the share sale.
Applicants of the issue can check the status of their allotment on the website of Link Intime, the registrar to the issue, or the BSE website.
Here's how to check Indigo Paints IPO allotment status
On Link Intime:
- Go to the online portal of Link Intime
- Click on Public Issues- Equities
- Click on the drop-down menu and select the company name 'Indigo Paints'
- Enter your Permanent Account Number (PAN) or application number or client ID or account number
- Click on 'Submit' and view the allotment status
Applicants can also check their IPO allotment status on the BSE.
- Select Equity and then from the dropdown, select issue name Indigo Paints
-Enter your Permanent Account Number (PAN) or application number and click 'Search' button
Through the application status, investors can see the number of shares subscribed during the IPO, and the shares allotted on the page.
As per Indigo Paints' DHRP, the main objective of the share sale is to meet the upcoming capital expenditure requirement for manufacturing facility expansion at Pudukkottai, Tamil Nadu, to purchase tinting machines and gyroshakers and repay all or certain borrowings.
Most of the brokerages had given subscribe rating for the IPO.
Motilal Oswal, in its note, had said, "We like Indigo Paints given its differentiated product portfolio and robust expansion plans. We believe it can attain scale and maintain its strong growth over the next few years. The issue is valued at 11.3x FY20 Mcap/sales which is comparable to peers. Hence, we recommend Subscribe to the IPO from long term perspective."
Geojit Financial Services had said, "Inspite of premium valuations, being the fastest growing paint company in India driven by developing niche product to compete market leaders, expansion plans, low debt & strong return profile with RoE of 25% in FY20 will make it an emerging player in the industry, we assign a "Subscribe" rating."
Indigo Paints is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints. It has a strong market network with dealers in tier 1, tier 2 cities, and metros.