Ali Hasan
If you were waiting for an opportunity to invest your money into a company, then maybe you should look an Indigo Paints which is all set for an IPO which could generate Rs 1,000 crores for them. They are backed by Sequoia Capital and have received SEBI’s approval to raise the desired amount through an IPO.
According to the Draft Red Hearing Prospectus (DRHP), the IPO comprises fresh issuance of shares aggregating to Rs 300 crores and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital, through its 2 funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan. Indigo Paints Face value of the share is Rs 10 per share.
Indigo Paints, which filed its preliminary IPO papers with SEBI in November, obtained its observation on December 31. SEBI’s observation is very necessary for any company to launch public issues, including initial share-sale, follow-on public offer and rights issue.
Proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchase of tinting machines and gyro shakers, and repayment/prepayment of borrowings.
The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country. As of September 30, 2020, the company has 3 manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.
Indigo Paints is one of the fastest-growing paint companies in India and in terms of revenue, it is the 5th largest company in the decorative paint industry. Indigo Paints is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints.
Indigo Paints Strengths:-
- Large product portfolio with differentiated products,
- Well-proven, and consistent growth track record,
- Strong brand equity, Extensive network distribution &
- Strategically located manufacturing facilities.
