Retina Paints
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Apr 2023 – 24 Apr 2023
- Listing date
- 03 May 2023
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹11.10 Cr
- Market cap at offer price
- ₹41.82 Cr
- Promoter holding
- 80.70% → 59.28% pre-issue → post-issue
- ISIN
- INE0NTC01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- Block No 2, Floors 2 & 3, Survey No.184 & 185, Opp Ganesh Kaman, Phase V, IDA, Cherlapally, Rangareddi, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,88,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹41.82 Cr |
Key performance indicators
- PAT margin
- 2.00%
- NAV per share
- ₹3.29
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Retina Paints
Retina Paints Limited was originally incorporated on November 01, 2010 as Retina Paints Private Limited and converted into a public limited company (fresh certificate of incorporation dated December 26, 2022); it is headquartered in Hyderabad, Telangana. The company manufactures decorative paints like distempers, primers, wall care products and emulsions, sources raw materials indigenously, and its water-based paints are used for residential and commercial buildings; it has recently introduced tinting machines. It operates on a B2B model, selling to a large network of dealers and distributors in Telangana and Andhra Pradesh with presence in Odisha. Its plants comprise Factory-I (rented) at IDA Nacharam, Hyderabad and Factory-II (owned) at Sy. No. 19, Rayaraopet Village, Bibinagar Mandal, Yadadri-Bhongir District — land acquired on May 27, 2020, factory construction completed September 20, 2022 — with newly installed capacity of 10 tons in texture and 10 tons in wall putty where commercial production has already started. The company had earlier taken over its wholly owned subsidiary Unikon Paints Private Limited via scheme of amalgamation (approved by order dated February 03, 2020, effective April 01, 2019). It earns money from sales of paints to dealers/distributors; restated total income was ₹ 647.24 Lakhs in FY2022 and ₹ 533.88 Lakhs for the stub period ended November 30, 2022.
Company Analysis
from RHPRetina Paints Limited manufactures and sells water-based decorative paints — such as distempers, primers, wall care products and emulsions — to dealers and distributors across Telangana, Andhra Pradesh and Odisha.
Retina Paints Limited was originally incorporated on November 01, 2010 as Retina Paints Private Limited and converted into a public limited company (fresh certificate of incorporation dated December 26, 2022); it is headquartered in Hyderabad, Telangana. The company manufactures decorative paints like distempers, primers, wall care products and emulsions, sources raw materials indigenously, and its water-based paints are used for residential and commercial buildings; it has recently introduced tinting machines. It operates on a B2B model, selling to a large network of dealers and distributors in Telangana and Andhra Pradesh with presence in Odisha. Its plants comprise Factory-I (rented) at IDA Nacharam, Hyderabad and Factory-II (owned) at Sy. No. 19, Rayaraopet Village, Bibinagar Mandal, Yadadri-Bhongir District — land acquired on May 27, 2020, factory construction completed September 20, 2022 — with newly installed capacity of 10 tons in texture and 10 tons in wall putty where commercial production has already started. The company had earlier taken over its wholly owned subsidiary Unikon Paints Private Limited via scheme of amalgamation (approved by order dated February 03, 2020, effective April 01, 2019). It earns money from sales of paints to dealers/distributors; restated total income was ₹ 647.24 Lakhs in FY2022 and ₹ 533.88 Lakhs for the stub period ended November 30, 2022.
Objects of the Issue
- Working Capital Requirements ₹ 800.00 Lakhs p.83
- General Corporate Purposes ₹ 210.10 Lakhs p.83
Issue Structure
- Total Issue
- ₹ 1,110.00 Lakhs (37,00,000 Equity Shares)
- Fresh Issue
- 37,00,000 Equity Shares of ₹ 10.00 each at ₹ 30.00 per Equity Share (including premium of ₹ 20.00 per Equity Share) aggregating ₹ 1,110.00 Lakhs
- Offer for Sale
- Nil — Not Applicable, as the entire issue constitutes fresh issue of equity shares
- Price Band
- Not applicable — 100% Fixed Price Issue; Issue Price of ₹ 30.00 per Equity Share (3.0 times the face value)
- Lot Size
- Market lot and Trading lot is 4,000 Equity Shares and in multiples of 4,000 thereafter; minimum allotment of 4,000 Equity Shares
- Face Value
- ₹ 10.00 per Equity Share
Business Model
B2B manufacturing model: the company produces decorative paints and sells them to dealers and distributors, who then sell to end customers.
Business Segments
SWOT Analysis
- • Experienced in-house marketing team driving brand awareness across markets(p.107)
- • Wide B2B distributor network across Telangana, Andhra Pradesh and Odisha(p.102)
- • Double quality-check regime on incoming raw materials and finished products(p.108)
- • ISO 9001:2015 certified quality management system (valid till December 07, 2024)(p.112)
- • New second manufacturing unit set up on owned land, already in commercial production(p.102)
- • Established supplier relationships protecting supply terms, pricing and quality(p.108)
- • Recently introduced tinting machines — a stated industry entry-barrier capability(p.102)
- • Outstanding legal proceedings pending against the Company, Promoters and Directors(p.26)
- • Registered office, branch office and one factory occupied on lease, not owned(p.27)
- • Revenue concentrated in a limited number of key customers(p.29)
- • No long-term written supply agreements; purely purchase-order based procurement(p.29)
- • Negative cash flows from operating activities in FY2021 and FY2020(p.37)
- • Continued dominant promoter control (~59.28%) post-issue over Board/shareholder decisions(p.33)
- • Product name trademarks applied for but not yet legally owned(p.38)
- • Indian paints & coatings market projected at ~USD 7,645 million with >7% CAGR (2023-28)(p.99)
- • Indian paint industry (decorative-led) expected to grow ~10% CAGR through FY2024-25(p.99)
- • Government housing initiatives (PMAY) supporting residential construction and paint demand(p.100)
- • Strategy to grow via geographical expansion beyond current three-state footprint(p.108)
- • Plan to expand manufacturing capacities and achieve economies of scale(p.108)
- • Planned entry into oil-based paints and direct-to-end-customer sales post-IPO to lift turnover(p.102)
- • Strategic acquisitions and technology alliances to access new clients and sectors(p.108)
- • Decorative paint industry historically dominated by four major entrenched entities with high entry barriers(p.27)
- • Intense competition from organized players (and unorganized sector pricing pressure)(p.36)
- • COVID-19 pandemic impact on business, demand and cash flows(p.29)
- • Monsoon-driven seasonality depressing June-August revenues; construction activity curtailed(p.32)
- • Raw material price fluctuations hampering industry/market growth(p.99)
- • Adverse changes in government regulations or their implementation disrupting operations(p.43)
- • Cyclical exposure to housing/construction and general macroeconomic conditions beyond company's control(p.36)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rakesh Dommati | Promoter | 54.99 | 40.39 |
| Ms. Rajitha Koyyada | Promoter | 15.33 | 11.26 |
| Mr. Bikshapati Koyyadi | Promoter Group | 9.77 | 7.17 |
| Mr. Rammoorthy Koyyada | Promoter Group | 0.63 | 0.46 |
Leadership
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.