Indigo Paints Limited, one of the fastest-growing amongst the top five paint companies in India and fifth-largest company in the Indian decorative paint industry in India in terms of its revenue from operations for FY20 will open the Bid/Offer period in relation to its initial public offering of Equity Shares on Wednesday, January 20, 2021. The Bid/Offer Period will close on Friday, January 22, 2021. The price band of the Offer has been fixed at Rs. 1,488 – Rs. 1,490 per Equity Share. The Company may, in consultation with the Book Running Lead Managers, consider participation by Anchor Investors which shall be one Working Day prior to the Bid/Offer Opening Date.
The IPO comprises fresh issuance of Equity Shares aggregating to Rs. 3,000 million by the Company and an offer for sale of up to 5,840,000 Equity Shares by Sequoia Capital India Investments IV and SCI Investments V (the “Investor Selling Shareholders”), and the promoter selling shareholder, Hemant Jalan (the “Promoter Selling Shareholder” and together with the Investor Selling Shareholders, the “Selling Shareholders” and such offering of Equity Shares by the Selling Shareholders, the “Offer for Sale”). The Offer includes a reservation of up to 70,000 Equity Shares for subscription by Eligible Employees of the Company (the “Employee Reservation Portion”). The Company and the Selling Shareholders in consultation with the BRLMs are offering a discount of Rs. 148 per Equity Share to the Offer Price to Eligible Employees bidding in the Employee Reservation Portion.
The Company proposes to utilize the Net Proceeds as follows (i) INR 1,500 mn towards funding capital expenditure for expansion of its existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility; (ii) INR 500 mn towards the purchase of tinting machines and gyroshakers; (ii) INR 250 mn towards repayment/prepayment of all or certain of Company’s borrowings; and (iv) balance towards general corporate purposes.