The share allocation in Indigo Paints IPO is likely to be finalised on 28 January while listing may happen on 2nd February, brokerages say. Link Intime India is the registrar of the IPO and will manage share allocation and refund. Investors can check allotment status on the registrar’s website after it is finalised.
Subscribed 117 times, the IPO of Indigo Paints, which had opened on 20th January and closed on 22 January, had seen an overwhelming response from investors. The retail portion was subscribed 16 times while the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 189.57 times and non-institutional investor category 263.05 times.
The price band was fixed at ₹1,488-1,490 a share for the initial share-sale. Ahead of the IPO, Indigo Paints had mopped up ₹348 crore from anchor investors. The anchor investors included Government of Singapore Investment Corporation, Fidelity, Goldman Sachs, Nomura and HDFC MF.
The ₹1,170 crore Indigo Paints IPO comprised fresh issuance of stocks aggregating to ₹300 crore and an offer-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital and promoter Hemant Jalan.
The Pune-based Indigo Paints manufactures a range of decorative paints and proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing facility and repayment/prepayment of borrowings.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.
Analysts expect Indian IPO market to remain buoyant this year. India recorded 19 IPOs (US$1836.22m) in the fourth quarter of 2020 with Indian stock exchanges (BSE and NSE including SMEs) versus11 IPOs at this time last year., according to EY India IPO Trends Report.
Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India said, “There is a strong momentum in the IPO markets, and we are seeing an increased interest from companies across sectors looking to raise capital in the near term. Additionally, companies are keenly awaiting guidelines for direct listing in overseas markets. The market sentiment remains positive for what could be a stellar 2021.”
“Exuberance in the market has resulted in several companies including e-commerce and emerging technologies to accelerate their IPO plans. Significant measures may be announced in the upcoming Union Budget 2021 that might boost demand, setting a positive tone for the Indian IPO markets,” the report said.
Meanwhile, the allotment of shares in IRFC IPO will be finalised today, according to the website of the issue’s registrar KFin Technologies Private Limited. Investors can check the website of KFin Technologies to check the allotment status.
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