Finally, The most awaited Indigo Paints IPO (initial public offer) notification has been released by company Indigo Paints. As we know it is one of the largest paint brands in India and continuously growing its business with a huge profit ratio. Due to the products and brand value, the Indigo IPO is oversubscribed over 1.9 times on its first-ever day on January 20, 2021. The huge bidding shows the interest of investors in this share. Currently, the public issue of this IPO has received the bid for 1.04 crore equity shares against an offer size of 55.18 lakh shares (excluding anchor books).
Currently, the retail investor reserved the 3.3 times subscription and the non-institutional investor 1.09 times which is a big number itself. On the other side, the 72 percent subscription and of qualified institutional buyers 10 percent.
Also Read: Top 20 Upcoming IPO
Now as we want to come on the issue price so according to the information to buy this IPO you need to buy a minimum quantity is 1 lot and 1 lot = 10 shares. The amount you need to have is 14,950 because one single share is available at Rs 1,488-1,490. All the retail traders and other investors expecting a high jump for this IPO. As per their prediction, the IPO will be listed above Rs50 definitely although lastly, it depends on the demand and market behaviors as well.
“There is further scope left for the company to improve EBIDTA margins due to operating leverage especially in the cost of advertisement expense. The issue is priced at 98.4x PE on a trailing basis in terms of fully diluted EPS, which we believe is quite reasonable by looking at the future growth prospects of the company,” Lahoti said.
Now to highlight some key points about Indigo Paints we want to tell you that the company is so terrifying and giving good results for many years. So far they are enough capable to grow more in the future as well they it is a reason behind the launch of the IPO and takes an initial step to enter the Market to make a good return for their investors. Here is info regarding the Indigo Paints “As of September 2020, Indigo Paints owns and operates three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 1,01,903 kilolitres per annum (KLPA) for liquid paints and 93,118 metric tonnes per annum (MTPA) for putties and powder paints.”