Shares of Indigo Paints on Tuesday made an impressive market debut, listing with a premium of 75 per cent against its issue price of Rs 1,490.
According to reports, the stock got listed at Rs 2,607.50, registering a sharp gain of 75 per cent against its issue price on the BSE. Later, it zoomed 84.98 per cent to Rs 2,756.30. At the NSE, it listed at Rs 2,607.50, jumping 75 per cent.
Indigo Paints' Rs 1,170-crore initial share-sale last month garnered an overwhelming response from investors and was subscribed 117 times.
The IPO has received bids for 64.58 crore shares against an offer size of 55.18 lakh shares, translating into a subscription of 117.02 times, data available on the exchanges showed.
The Rs 1,170-crore IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58.40 lakh equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan.
The price band was fixed at Rs 1,488–1,490 a share for the initial share-sale, which was open for public subscription from 20 to 22 January.
Proceeds from the fresh issuance of shares will be used for the expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchase of tinting machines and gyro shakers, and repayment/prepayment of borrowings.
Kotak Mahindra Capital Company, Edelweiss Financial Services, and ICICI Securities are the book running lead managers to the issue. The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.
(With inputs from Agencies)
