Indigo Paints will announce the allotment of Rs 1,170 crore initial public offer (IPO) on Thursday (28 January). The market lot size of the Indigo Paints IPO is 10 shares and the price band was fixed at Rs 1,488-1,490 a share for the initial share-sale.
The IPO garnered a huge response from investors and was subscribed 117.02 times. The IPO received bids for 64.58 crore shares against an offer size of 55.18 lakh shares. The initiation of refunds will commence on 29 January and shares will be credited to demat accounts on 1 February. The expected listing date is 2 February.
According to The Economic Times, the Indigo Paints IPO saw the quota for HNIs being subscribed 263 times and the portion reserved for qualified institutional buyers (QIBs) 189.57 times. The report added that analysts have said that the upper limit of the price band means that the paint maker is targeting a market capitalisation of Rs 7,100 crore.
This, in turn, hints towards a price-to-earnings multiple of 66 times the expected FY22 earnings and 44 times FY23 earnings. This is after assuming an earnings CAGR of 50 percent over FY20-23.
The report further cited YES Securities in saying that Indigo Paints can command a price multiple of 60 times on expected FY23 earnings. This is comparable with Asian Paints’ 62 times and Berger Paints’ 73 times FY23 earnings.
Here’s how to check Indigo Paints IPO allotment status on stock-exchange website:
Step 1: Go to the BSE website or NSE website
Step 2: On BSe, select ‘Equity’ and then from dropdown, select ‘Indigo Paints’
Step 3: Enter application number and PAN
Step 4: Enter ‘Search’
According to a report by Business Insider, this was the second initial public offer this year. The grey market premium of Indigo Paints plunged nearly 10 percent after Birla Group-owned Grasim announced its foray into the paint business.
Proceeds from the fresh issuance of shares will be used for expanding the existing manufacturing facility at Pudukkottai in Tamil Nadu. It will also be used for purchasing tinting machines and gyro shakers, as well as repayment/prepayment of borrowings.