The initial public offering (IPO) to raise around ₹1,176 crore was subscribed 117 times with a price band of ₹1,488- Rs1,490 in the three-day share sale that closed on 22 January. The Indigo Paints IPO garnered a super response from investors at the time of subscription.
The scrip initially got listed at Rs 2,607.50 apiece on both the BSE and NSE, thereby registering a rise of 75 per cent from its offer price of Rs 1,490. The stock opened for trading at Rs 2,607, up 75 per cent from its issue price of Rs 1,490. It touched an intra-day high of Rs 3,129 (which was the 20 percent upper circuit) and low of Rs 2,428.20.
India has seen robust responses to consumer-focused IPOs and market debuts in recent months, as the stock market galloped to record highs on strong foreign inflows, boosted by coronavirus vaccine hopes and abundant liquidity in global markets.
Also the price band of the shares were fixed at Rs 1,488-1,490 a share.
The company's market valuation stood at Rs 14,884.34 crore, according to data available on the BSE. Financials have been extremely strong for this paints player with minimal debt on its books.
It traded with volumes of over 1.26 crore shares on the NSE and 10.36 lakh shares on BSE. The company is also one of the fastest-growing paint companies in the country in terms of revenue as it has grown at a 42 percent CAGR over the financial year 2010 to 2019.
The company plans to use proceeds worth Rs 1,170.16 crore from public issue 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.
The company has a large product portfolio with differentiated products, extensive network distribution and strategically located manufacturing facilities.
The company has been gaining market share.