Indigo Paints
Mainboard₹1,169 Cr issue
+75.00%
Listing gain over issue price
Issue size
₹1,169 Cr
1 lot at cut-off
₹14,900
Lot size
10shares
Open
20 Jan 2021
Close
22 Jan 2021
Allotment
28 Jan 2021
Listing
02 Feb 2021
Listing performance
Issue price
₹1,490
Listed at
₹2,607.50
Listing-day close
₹3,118.65
Latest price
₹1,013.90
Close on 23 Oct 2026
Listing gain
+75.00%
Return since issue
-31.95%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Jan 2021 – 22 Jan 2021
- Listing date
- 02 Feb 2021
- Face value
- ₹10 per share
- Issue price
- ₹1,490 per share
- Lot size
- 10 shares
- Total issue size
- ₹1,169 Cr
- Market cap at offer price
- ₹7,088 Cr
- Promoter holding
- 60.05% → 54.00% pre-issue → post-issue
- ISIN
- INE09VQ01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Edelweiss Financial Services Ltd.
- Registered office
- Indigo Tower, Street-5, Pallod Farm-2, Baner Road, Pune, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 23,35,020 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 10 shares per lot, in multiples, at ₹1,490
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10 | ₹14,900 |
| Retail (max) | 13 | 130 | ₹1,93,700 |
| S-HNI (min) | 14 | 140 | ₹2,08,600 |
| S-HNI (max) | 67 | 670 | ₹9,98,300 |
| B-HNI (min) | 68 | 680 | ₹10,13,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
23,35,020
Anchor portion
₹348 Cr
at ₹1,490 per share
Valuation and performance
Valuation at offer price
₹1,490 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹7,088 Cr |
About Indigo Paints
Indigo Paints Limited is engaged in the business of manufacturing paints and is the fastest growing amongst the top five paint companies in India. The company was originally incorporated as 'Indigo Paints Private Limited' on March 28, 2000 in Pune, Maharashtra, and was converted into a public limited company on August 20, 2020. The company has achieved its position in the highly competitive Indian decorative paint industry through a multi-pronged approach including introducing differentiated products, building brand equity for the 'Indigo' brand, creating an extensive distribution network, and installing tinting machines across its dealer network. As of September 30, 2020, the company operates three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.
Company Analysis
from RHPIndigo Paints Limited manufactures decorative paints and related products, operating primarily in India's decorative paint industry.
Indigo Paints Limited is engaged in the business of manufacturing paints and is the fastest growing amongst the top five paint companies in India. The company was originally incorporated as 'Indigo Paints Private Limited' on March 28, 2000 in Pune, Maharashtra, and was converted into a public limited company on August 20, 2020. The company has achieved its position in the highly competitive Indian decorative paint industry through a multi-pronged approach including introducing differentiated products, building brand equity for the 'Indigo' brand, creating an extensive distribution network, and installing tinting machines across its dealer network. As of September 30, 2020, the company operates three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.
decorative paintspaint manufacturing
Objects of the Issue
- Funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility ₹1,500.00 million p.20
- Purchase of tinting machines and gyroshakers ₹500.00 million p.20
- Repayment/prepayment of all or certain of our borrowings ₹250.00 million p.20
- General corporate purposes ₹611.56 million p.20
- Repayment of borrowings p.41
- Funding capital expenditure for expansion of existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility ₹1,500.00 million p.92
- Purchase of tinting machines and gyroshakers ₹500.00 million p.92
- Repayment/prepayment of all or certain borrowings ₹250.00 million p.92
- General corporate purposes ₹611.56 million p.92
- Expansion of manufacturing facilities to include manufacturing of water-based paints at Pudukkottai, Tamil Nadu p.162
- Funding capex for the expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu by setting up of an additional unit adjacent to the existing facility p.314
- General corporate purposes
Issue Structure
- Total Issue
- ₹11,691.24 million
- Fresh Issue
- ₹2,997.34 million (2,013,422 Equity Shares)
- Offer for Sale
- ₹8,693.90 million (5,840,000 Equity Shares)
- Price Band
- ₹1,488 - ₹1,490 per Equity Share
- Lot Size
- 10 Equity Shares and in multiples of 10 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures decorative paints including wall finishes for interior and exterior use, enamels, wood finishes and ancillary products such as primers and putties, which it sells through a network of dealers. The company generates revenue from sales of its paint products through its dealer distribution network. As of September 30, 2020, the company distributed its products to a network of 10,988 Active Dealers. The company also installs tinting machines at dealer outlets to support sales of its emulsion paints.
Business Segments
Manufactures wall finishes for interior and exterior use, enamels, wood finishes and ancillary products such as primers and putties
Manufactures and sells emulsion paints, distempers, and primers for residential and commercial use
Manufactures and sells solvent-based paints gained through acquisition of Hi-Build Coatings
Interior and exterior emulsion paints for residential and commercial use
Oil-based and solvent-based enamel paints for interior and exterior surfaces
Coatings for wood surfaces including solvent-based and water-based options
Specialty products including Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions, Floor Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Acrylic Laminates, and PU Super Gloss Enamels
Water-based paints consisting of water dispersible binders, additives and colorants used for interior and exterior applications on cement plaster, concrete and masonry
Solvent-based paints made from alkyd binders, solvents, pigments and additives which impart a glossy finish and surface protection for painting wooden and metal surfaces
Economical exterior wall paints manufactured from white cement, lime, minerals and pigments applied on cement plaster, concrete and asbestos sheet surfaces; putties provide smooth finish and adhesion between wall and paint
Water-based and solvent-based primers applied as preparatory coats before painting; traditional water-based distempers used for interior applications; other specialty products
Solvent-based and water-based products used to protect and beautify wooden surfaces offering glossy, matte or silk matte finish
Category-creator products (Metallic Emulsion, Tile Coat Emulsion, Bright Ceiling Coat, Floor Coat Emulsion) and value-added products (Dirtproof & Waterproof Exterior Laminate, Exterior and Interior Acrylic Laminate, PU Super Gloss Enamel) with higher margin profiles
Manufacture and sale of decorative paints to customers across India
Manufacture and sale of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints
Our business activity falls within a single business segment, i.e. 'Paints' with sales substantially in the domestic market
SWOT Analysis
Strengths
- • Fifth largest decorative paint company in India with strong growth trajectory(p.20)
- • Differentiated product strategy and multi-pronged business approach(p.20)
- • Extensive dealer distribution network reaching across India(p.29)
- • Three manufacturing facilities with significant installed capacity(p.30)
- • Strong financial performance with improving profitability(p.21)
- • Established manufacturing presence across multiple states with proven operational capability(p.40)
- • Established dealer relationships and sales network(p.44)
- • Strategic acquisition successfully completed to expand product portfolio and geographic presence(p.45)
- • Fastest growing among top five paint companies with differentiated product portfolio(p.156)
- • Early mover advantage in differentiated products creating distinct market position(p.156)
- • Strategic manufacturing facility locations near raw material sources reducing costs(p.156)
- • Strong presence in high-growth Tier 2-4 Cities and Rural Areas with dealer influence(p.156)
- • Extensive distribution network across 27 states and union territories with tinting machine deployment(p.156)
- • Strong brand equity with celebrity endorsement by MS Dhoni(p.156)
- • Higher gross margins from differentiated products(p.156)
- • Fastest growing paint company among top five in India with significant market share gains despite industry headwinds(p.157)
- • Category-creator differentiated products with higher margins and first-mover advantage in niche segments(p.158)
- • Gross margins consistently exceed industry average due to product mix and locational advantages(p.160)
- • Extensive distribution network with 11,230 active dealers and successful bottom-up expansion strategy(p.159)
- • Large installed tinting machine base supporting emulsion paint growth and dealer commitment(p.159)
- • Strategically located manufacturing facilities with proximity to raw materials reducing input costs(p.160)
- • Experienced management team with strong paint industry credentials and investor support(p.160)
- • Multi-location manufacturing presence with three operational facilities(p.218)
- • Diversified revenue base across Indian geography with growing export presence(p.250)
- • Strong profitability growth trajectory with improving margins(p.215)
- • Consolidated cash generation and investment capacity(p.216)
- • Solid equity base and debt reduction trajectory(p.214)
- • Fifth largest decorative paint company in India with fastest growth among top five(p.274)
- • Differentiated product portfolio with early mover advantage generating higher margins(p.274)
- • Extensive distribution network with strategically located manufacturing facilities(p.274)
- • Efficient cost structure with lowest other operating expenses among peers(p.279)
- • Significant spare manufacturing capacity available for growth(p.279)
- • Strong brand building with celebrity ambassador and improving media parity with major competitors(p.278)
- • Strong profitability trajectory with consistent growth(p.275)
- • Strong revenue growth and improved profitability(p.300)
- • Improving operating margins(p.300)
- • Reducing material costs as percentage of revenue(p.301)
- • Successful deployment of tinting machine model(p.301)
- • Strong cash generation from operations(p.304)
Weaknesses
- • High dependency on Kerala market creating geographic concentration risk(p.32)
- • High advertising and marketing expenses relative to competitors(p.26)
- • Inconsistent capacity utilization impacting operational efficiency(p.30)
- • High working capital intensity of business model(p.38)
- • Outstanding contingent liabilities primarily from tax matters(p.33)
- • No long-term arrangements with dealers creating instability(p.29)
- • Heavy dependence on electricity and water supply, with risk of production suspension if supply is interrupted(p.40)
- • Risk of labor disputes and unionization affecting operations(p.40)
- • Inability to accurately forecast demand or manage inventory creates risk of obsolescence and lost sales(p.40)
- • Significant trade receivables exposure to dealer default risk(p.41)
- • Manufacturing facilities dependent on leased/licensed premises with expiration risks and restrictive covenants(p.42)
- • Insurance coverage gaps with potential for uninsured losses exceeding policy limits(p.42)
- • Critical dependence on key promoters and managerial personnel with risk of knowledge/relationship loss(p.44)
- • Untraceable corporate records from pre-computerization period creating regulatory compliance uncertainty(p.43)
- • High advertising and promotion spend relative to revenue limiting profitability(p.153)
- • Higher freight and forwarding costs due to manufacturing location distance from consumption centers(p.153)
- • Lower PAT margins relative to larger competitors(p.153)
- • Dependency on dealer network with limited direct customer relationships in organized retail(p.131)
- • Smaller market share and brand recognition compared to established players(p.139)
- • Below-average tinting machine to dealer penetration ratio limiting scale(p.143)
- • Significantly lower dealer network scale vs. market leader (11,230 vs. 70,000+ dealers)(p.161)
- • Heavy reliance on brand building investments to compete against established competitors(p.158)
- • Capacity utilization remains below 50% at most facilities despite recent expansions(p.167)
- • High dependence on concentrated raw material sourcing with potential supply disruption risks(p.169)
- • Concentrated ownership structure with promoter family holding majority stake(p.244)
- • Significant current borrowings obligation despite overall debt reduction(p.248)
- • Reliance on single product category - decorative paints(p.218)
- • Pending statutory disputes related to taxes and duties(p.236)
- • Trade receivable impairment exposure with significant provision requirement(p.242)
- • High advertisement and sales promotion expenses relative to revenue(p.278)
- • Significant contingent liabilities related to VAT, primarily at September 30, 2020(p.256)
- • Capital commitments for expansion at Pudukkottai facility may strain resources(p.256)
- • Multiple contingent liabilities from various tax matters(p.256)
- • Contingent tax liabilities(p.306)
- • Significant capital expenditure requirements(p.307)
- • Material litigation exposure related to taxes(p.312)
- • Outstanding liability to multiple creditors(p.313)
Opportunities
- • Strong industry growth trajectory providing market expansion potential(p.20)
- • Expansion of manufacturing capacity at Pudukkottai facility to capture growth(p.20)
- • Growing tier 2-4 city markets with significant penetration opportunity(p.20)
- • Tinting machine expansion to strengthen dealer relationships and brand loyalty(p.20)
- • Growth through differentiated product development strategy(p.38)
- • Capacity expansion initiatives to support business growth(p.40)
- • Strategic acquisitions and joint ventures to expand product portfolio and distribution(p.45)
- • Expansion into high-growth water-based paint segment with growing market demand(p.93)
- • Capitalize on low per-capita paint consumption in India versus global standards(p.132)
- • Penetration of unorganized sector through organized distribution in Tier 2-4 cities(p.134)
- • Government housing schemes driving demand for fresh and repainting(p.141)
- • Decorative paints market expected to grow at 13% CAGR through 2024(p.135)
- • Expand manufacturing capacity for 50,000 KLPA water-based paint production at Pudukkottai(p.93)
- • Increasing tinting machine penetration to deepen market share in tier 2-4 cities(p.143)
- • Entry into metros and Tier 1 cities leveraging established brand equity(p.139)
- • Significant untapped opportunity in metros and larger cities to expand high-margin emulsion paints(p.161)
- • Growing emulsion paint market expected to reach ₹309.5 billion by FY2024 at 13.60% CAGR(p.159)
- • Planned capacity expansion at Pudukkottai to 50,000 KLPA to capture water-based paint demand(p.162)
- • Regulatory tailwinds driving adoption of water-based coatings with lower VOC content(p.162)
- • Opportunity to expand dealer penetration in existing states where company has established presence(p.161)
- • Expansion of manufacturing capacity and geographic footprint(p.238)
- • Growth through organizational scaling with employee base expansion(p.251)
- • Strategic use of customer incentives programs to drive market penetration(p.248)
- • Enhanced capital deployment through improved cash generation and reduced capital intensity(p.216)
- • Expansion into Tier 1 and Tier 2 cities and metros with existing dealer network foundation(p.279)
- • Capacity expansion at Pudukkottai for water-based paints to meet growing demand(p.274)
- • Growing tinting machine network to drive emulsion paint sales(p.279)
- • Market share gains from position as fastest growing among top five companies(p.279)
- • Continued product innovation to create differentiated market segments(p.276)
- • Expansion of manufacturing capacity(p.324)
- • Growth through entering new markets(p.300)
- • Premium product mix growth(p.301)
- • Continued expansion of tinting machine distribution network(p.301)
Threats
- • Intense competition from larger well-established paint manufacturers(p.27)
- • Continued adverse impact of COVID-19 pandemic on business operations(p.26)
- • Raw material price volatility and import dependency risks(p.39)
- • Geographic seasonality and monsoon impact on decorative paints demand(p.38)
- • Regulatory approvals delays affecting capacity expansion plans(p.31)
- • Regional natural disasters and social disruptions affecting southern operations(p.32)
- • Environmental regulatory stringency requiring increased capital expenditure(p.37)
- • Shortage or increased costs of electrical power and water supply at state and national level(p.40)
- • Restrictions on import of critical raw materials from Vietnam due to regulatory changes(p.42)
- • Product quality defects and deficiencies creating product liability claims and recall risks(p.43)
- • Fluctuation in average selling prices due to market competition and raw material costs(p.43)
- • Economic slowdown in India adversely affecting demand for decorative paint products(p.49)
- • Foreign exchange volatility affecting input costs and margins(p.52)
- • Inflation in India potentially outpacing ability to increase product prices(p.52)
- • Intense competition from established larger players with dominant market share(p.144)
- • Significant industry entry barriers including established distribution networks and brand recognition(p.131)
- • Volatility in crude oil and raw material prices affecting input costs(p.133)
- • COVID-19 pandemic impact on demand with metros and Tier 1 cities affected more(p.135)
- • Pressure from larger competitors expanding into Tier 2-4 cities where Indigo is established(p.145)
- • Tinting machine space constraints at dealer outlets creating market saturation(p.143)
- • Regulatory changes and compliance costs for environmental and safety standards(p.141)
- • Highly competitive paint industry dominated by four major entities controlling 65% market share(p.173)
- • Proposed capacity expansion subject to risks of cost overruns and implementation delays(p.169)
- • Raw material cost volatility and dependence on imported minerals with currency fluctuation risks(p.169)
- • Entry barriers require significant investment in distribution network and brand building to compete(p.173)
- • Exposure to raw material price volatility and supply chain disruptions(p.251)
- • Operational disruption from COVID-19 pandemic impact on demand and supply(p.212)
- • High freight and logistics cost exposure creating margin pressure(p.252)
- • Competitive intensity in decorative paints market requiring sustained advertising investment(p.252)
- • Interest rate risk on borrowing obligations affecting financial costs(p.247)
- • Seasonality and monsoon impact on paint sales(p.280)
- • Cyclicality of construction and housing industry affecting customer base(p.280)
- • Weather conditions adversely affecting exterior paint sales(p.280)
- • Intense competition from established market leaders with significant advantages(p.279)
- • Working capital intensity of business creating liquidity challenges(p.270)
- • COVID-19 pandemic impact on operations and demand(p.293)
- • Seasonal business volatility due to monsoon(p.310)
- • Raw material price volatility(p.301)
- • Competitive market conditions(p.310)
- • Regulatory and tax compliance risks(p.312)
- • Impact of COVID-19 on operations(p.308)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hemant Jalan | Promoter | 22.47% | — |
| Anita Jalan | Promoter | 15.34% | — |
| Parag Jalan | Promoter | 3.57% | — |
| Kamala Prasad Jalan | Promoter | 3.64% | — |
| Halogen Chemicals Private Limited | Promoter | 10.88% | — |
| Hemant Jalan | Promoter | 22.47% | 18.01% |
| Anita Jalan | Promoter | 15.34% | 14.69% |
| Halogen Chemicals | Promoter | 10.88% | 10.42% |
| Parag Jalan | Promoter | 3.57% | 3.42% |
| Kamala Prasad Jalan | Promoter | 3.64% | 3.48% |
| Tara Devi Jalan | Promoter | 4.15% | 3.98% |
| Sequoia IV | Investor Selling Shareholder | 18.74% | — |
| SCII V | Investor Selling Shareholder | 20.21% | — |
| Hemant Jalan | Promoter | 22.44% | — |
| Anita Jalan | Promoter | 15.32% | — |
| Parag Jalan | Promoter | 6.99% | — |
| Kamala Prasad Jalan | Promoter | 7.79% | — |
| Halogen Chemicals Private Limited | Promoter Group | 7.51% | — |
| Hemant Jalan | Promoter | 35.28% | — |
| Anita Jalan | Promoter | 24.08% | — |
| Kamalaprasad Jalan | Promoter | 5.71% | — |
| Taradevi Jalan | Promoter | 6.52% | — |
| Parag Jalan | Promoter | 5.60% | — |
| Halogen Chemicals Private Limited - India | Promoter Group | 17.09% | — |
| Sequoia Capital India Investments IV - Mauritius | Investor | — | — |
| Hemant Jalan | Promoter | — | — |
| Anita Jalan | Promoter | — | — |
| Mr. Hemant Jalan | Promoter | — | — |
| Mrs. Tara Devi Jalan | Promoter | — | — |
| Mr. Kamala Prasad Jalan | Promoter | — | — |
| Mrs. Anita Jalan | Promoter | — | — |
| Mr. Parag Jalan | Promoter | — | — |
| Halogen Chemicals Private Limited | Promoter | — | — |
| Hemant Jalan | Promoter Selling Shareholder | — | — |
| Sequoia Capital India Investments IV | Investor Selling Shareholder | — | — |
| SCI Investments V | Investor Selling Shareholder | — | — |
Leadership
Hemant Jalan · Managing Director and Chairman
Sujoy Bose · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Indigo Paints IPO FAQs
What is the lot size of Indigo Paints IPO?
The minimum lot size of Indigo Paints IPO is 10 shares. One lot costs ₹14,900 at the cut-off price.
When does Indigo Paints IPO open and close?
Indigo Paints IPO opened for subscription on 20 Jan 2021 and closed on 22 Jan 2021.
What is the listing date of Indigo Paints IPO?
Indigo Paints IPO listed on 02 Feb 2021.