Splendid show! Indigo Paints zooms 110% on listing day

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Shares of Indigo Paints made a stellar debut on the bourses with a hefty premium over the issue price. On the BSE, the scrip settled 110% up at Rs 3,118.65 over the issue price of Rs 1,490. On the other hand, it settled at Rs 3,129 on the NSE.

Earlier, the initial share-sale garnered an overwhelming response from investors and was subscribed 117 times on the final day of bidding on January 22.

The IPO had received bids for 64.58 crore shares against an offer size of 55.18 lakh shares, translating into a subscription of 117.02 times, data available on the NSE showed.

The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 189.57 times, while that of non-institutional investor category received 263.05 times subscription and retail portion was subscribed 15.93 times.

The Rs 1,170.16-crore IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan.

The price band was fixed at Rs 1,488-1,490 a share for the initial share-sale, which was open for public subscription during January 20-22.

Proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchasing of tinting machines and gyro shakers, and repayment/prepayment of borrowings.

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue. The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.

As of September 30, the company had three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.

Earlier, shares of the company listed at Rs 2,607.50, up 75% over its issue price. Likewise, the scrip listed at Rs 2,607.50 on the BSE.