Indigo Paints IPO: Robust Revenue growth CAGR of 41.9%

Indigo paint

The fifth largest paint company in India – Indigo paints has opened its initial public offering for the subscription on January 20 with a stealing price band at 1488-1490 per share. 

The IPO has fresh issue of Rs. 300 crore and an offer for sale of 58,400 equity shares.


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 kilo litres per annum (KLPA) for liquid paints and 93,118 metric tonnes per annum (MTPA) for putties and powder paints.

Company’s revenue from operations have grown at a CAGR of 41.9 percent between Fiscal 2010 and Fiscal 2019, compared to the range of 12.1 percent to 13.1 percent recorded by the top four paint companies (Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel) in India.


The company is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints.

Indigo paints IPO

Indigo paints IPO Subscribe recommendations

  • Indigo Paints has been gaining market share. “We believe it will continue to gain market share in the upcoming years also due to the strong management team, strategies planned by the company and smaller base compared to top four players,” Keshav Lahoti, Associate Equity Analyst at Angel Broking said.
  • Geojit Financial Services, IIFL Securities and LKP Securities in their respective research notes have all recommended “Subscribe” to the offer.
  • IIFL Securities in its IPO note said, “As per our estimates, Indigo Paints would yield a valuation of 46x FY23E EPS (on upper price band) vs. 63x for Asian Paints and 77x for Berger Paints. A combination of higher growth and lower valuations makes for an exciting investment opportunity. We recommend Subscribe to the IPO, given favorable growth valuation equation.”
  • LKP Securities in its research report noted that, “Indigo is the fastest growing paint company which has grown at a much faster pace in the last decade than any other paint company in india. The company has adopted a differentiated approach to market and sell its products in the industry which is dominated by the larger players. Indigo has been able to expand its EBIDTA/PAT margins from 6.4%/3.2% in FY18 to 14.6%/7.7% on the back of economies of scale and better raw material sourcing. The company’s ROE & ROCE has also improved significantly to be at par with the industry leaders in the last five years.”

Indigo paints Company Strengths

  • Large product portfolio with differentiated products.
  • Well-proven, and consistent growth track record.
  • Strong brand equity.
  • Extensive network distribution.
  • Strategically located manufacturing facilities.

Company Promoters:

Hemant Jalan, Anita Jalan, Parag Jalan, Kamala Prasad Jalan, Tara Devi Jalan and Halogen Chemicals Private Limited are the promoters of the company.


Indigo paints Company Financials:

Summary of financial Information (Restated Consolidated)
ParticularsFor the year/period ended (₹ in million)
Total Assets4,112.914,219.593,731.832,973.94
Total Revenue2,602.436,264.365,372.624,031.05
Profit After Tax272.05478.15268.70128.62
Revenue (₹Cr)5366256878941,072

Indigo Paints IPO Details

Issue OpenJan 20, 2021
Issue CloseJan 22, 2021
IPO Price₹1488 – ₹1490
Face Value₹10
IPO Size₹1,176.00 Cr
Listing AtBSE, NSE
IPO Lot Size10

Indigo Paints IPO Lot Size

The Indigo Paints IPO market lot size is 10 shares. A retail-individual investor can apply for up to 13 lots (130 shares or ₹193,700).

ApplicationLotsSharesAmount (Cut-off)

Indigo Paints IPO Promoter Holding

Pre Issue Share Holding60.05%
Post Issue Share Holding54%

Indigo Paints IPO Subscription Status Live

Indigo Paints IPO subscribed 1.90 times. The public issue subscribed 3.29 times in the retail category, 0.11 times in QIB, and 1.10 times in the NII category by Jan 20, 2021 05:00.

CategorySubscription Status
Qualified Institutional0.11 Times
Non Institutional1.10 Times
Retail Individual3.29 Times
Employee0.73 Times
Others[.] Times
Total1.90 Times

Indigo Paints IPO subscribed 117.02 times. The public issue subscribed 15.93 times in the retail category, 189.57 times in QIB, and 263.05 times in the NII category by Jan 22, 2021 05:00.

CategorySubscription Status
Qualified Institutional189.57 Times
Non Institutional263.05 Times
Retail Individual15.93 Times
Employee2.50 Times
Others[.] Times
Total117.02 Times

Indigo Paints IPO Subscription Details (Day by Day)

Indigo Paints IPO subscribed 1.90 times. Indigo Paints IPO received bids for 3.29 times issue size in retail, 0.11 times issue size in QIB, and 1.10 times issue size in the Non-institutional category by Jan 20, 2021 05:00.

Jan 20, 2021 05:000.11x1.10x3.29x0.73x1.90x

Indigo paints Grey market Premium:

Indigo Paints has been commanding a strong grey market premium. “Today the grey market premium of Indigo Paints is around Rs 850 per share,” Umesh Paliwal, Co-founder of UnlistedZone told Financial Express Online.

Indigo Paints IPO Grey Market Premium Updates

DateGMPKostakSubject to Sauda
22 Jan 2021₹870-875₹900-950₹8500
21 Jan 2021₹833-837₹850₹8000
19 Jan 2021₹800-825₹800₹8000
15 Jan 2021₹840-850₹825-850₹7300-7500
13 Jan 2021₹820-825₹850₹7300-7500

“Listing of Indigo Paints is expected to be good, at least around 20-25% on the upside,” said Vishal Wagh, Head of Research, Bonanza Portfolio. 

Talking strategy for the listing day, Vishal Wagh advises investors who will be allotted the shares, to book profits. “Profit booking is always a good strategy for IPOs, investors can rebuy it if the stock holds above listing price for a month,” he added.


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