IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 20th Jan 2021
- IPO End Date – 22th Jan 2021
- Listing Date – 2nd Feb 2021
- IPO Price – INR 1490
- IPO Lot Size – 10
- Minimum investment required – INR 14,900
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Business Details
Indigo Paints is 5th largest Decorative Paint maker in India. It has market share of 2% as of this writing. It is relatively new Company starting its journey in year 2000. Since then it has shown good growth and is now commanding 2% market share in Industry which is dominated by few players.
The products from the Company can be divided into below categories.
- Interior Emulsions
- Exterior Emulsions
- Enamel
- Putties and Primer
- Sleek Wood Coatings
- Aluminum Paints
- Stone and Tile
- Roof Paint
- Knifing Paste Filler
- Primer Surfacer
- Universal Stainer
The Company has 2% market share but the profit has grown significantly nearly four times in last three years. The base size is small so the profit growth figures does look significant.
The Company brags about some unique products it created over the years. It reflects the innovation of Company as well.
- India’s first metallic paint
- India’s first floor coat paint
- Tile coat paint for roofs
- Ceiling coat paints
The Company primarily operates in Decorative paints sector. It targets Tier 3 and Tier 4 cities for expansion which is good strategy from the Company.It has 3 manufacturing facilities situated in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu).
Financial Snapshot
Below are key financials of the Company for year ending 2019 (Rupee in million)
- Total Assets – 4,219
- Total Revenue – 6,264
- Profit for year – 478
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 0 times
- NII – 0.12 times
- RII – 00.79 times
- Employee – 0.05 times
- Total Subscription is 0.42 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
Paints majorly has two Consumer Segments. One segment is Decorative Paints and other segment is Automotive Paints. The Decorative paints is what we have on our homes. Indigo Paints is present in this segment. With competition from listed peers it has grown to 2% market share in this competitive segment.
The profit has grown significantly over last three years as mentioned above. Paints sector is poised to grow due to residential space growth and increasing income of the middle class.
Paints as a sector is still under penetrated and is poised to grow with time. Due to above reasons the IPO should get over subscribed or see positive response from Investors.You may get listing gains in this IPO due to positive response and demand. Most of the Brokerage houses have subscribe rating for this IPO.