Company introduction
Indigo paints is one of the fastest growing paint companies in India. It is the fifth largest company in the Indian decorative paint industry in terms of the revenue from operations for Fiscal 2020. First company to manufacture and introduce Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions, Floor Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel.
As of September 30, 2020, they own and operate three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 101,903 kilo litres per annum (“KLPA”) for liquid paints and 93,118 metric tonnes per annum (“MTPA”) for putties and powder paints.
Industry overview
Set forth below is India’s per capital consumption of paints and coatings country wise
| Country | Consumption in Kg’s (2019) |
| USA | 15.8 |
| Canada | 13.7 |
| Japan | 10.5 |
| China | 7.2 |
| India | 4.1 |
India’s per capita paint consumption increased by a CAGR of 6.8% in the last seven years from 2.6 kg in Fiscal 2012 to 4.1 kg in Fiscal 2019. The total value of Indian decorative paints industry is estimated about 403 billions.
Set forth below is the competitive landscape of the Indian decorative paints industry
| brand | Market share in percentage |
| Asian paints | 42 % |
| Berger paints | 12 % |
| Kansai Nerolac | 7 % |
| Akzo Nobel | 5 % |
| Indigo paints | 2 % |
| Others | 33 % |
Promoters of the company
Promoters are Hemant Jalan, Anita Jalan, Parag Jalan, Kamala Prasad Jalan and Halogen Chemicals.
Strengths
- Track record of consistent growth in a fast growing industry with significant entry barriers
- Differentiated products leading to greater brand recognition and enabling expansion into a complete range of decorative paint products
- Focused brand-building initiatives to gradually build brand equity
- Continue to focus on developing differentiated products to grow market share
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 : 150.00cr
- Purchase of tinting machines and gyroshakers : 50.00cr
- Repayment/prepayment of all or certain of our borrowings : 25.00cr
Financial strength
| 2020 | 2019 | 2018 | |
| ASSETS(cr) | 422 | 373 | 297 |
| REVENUE(cr) | 626 | 538 | 403 |
| PROFIT/LOSS(cr) | 47.8 | 26.8 | 12.8 |
| EPS(Rs) | 10.49 | 5.90 | 2.82 |
IPO Details
| IPO date | Jan 20 – 22(2021) |
| Issue size | 1176 Cr( . Eq shares) |
| Listing price band | 1488 – 1490 per equity share |
| Face value | 10 Rs |
| 1 Lot size | 10shares |
| Retail portion | 35% |
| Minimum quote | 14,960 Rs |
| Maximum quote | 1,94,480 Rs |
| Listing in | BSE,NSE |
| Offer opens on | Jan 20, 2021 |
| Offer closes on | Jan 22, 2021 |
| Credit of shares in demat account | Feb 1,2021 |
| Listing date | Feb 2, 2021 |
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