Indigo Paints shares made a blockbuster stock market debut on Tuesday, February 2, 2021. The stock opened for trading at Rs 2,607, up 75 per cent from its issue price of Rs 1,490. Indigo Paints shares rose as much as 84 per cent from issue price to hit an intraday high of Rs 2,747 on the National Stock Exchange.
The Sequoia Capital-backed Indigo Paints’ Rs 1,170 crore-initial public offering was open between January 20-22 and company sold shares in the price band of Rs 1,488-1,490 per share. The stock was in huge demand during the three-day share sale via IPO as it was subscribed a whopping 117 times, data from National Stock Exchange showed.
The IPO comprised fresh issue of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital and promoter Hemant Jalan.
Indigo Paints said that it will use the IPO proceeds to expand its manufacturing facility at Pudukkottai in Tamil Nadu, buy tinting machines and gyro shakers, and repay / prepay borrowings.
Edelweiss Financial Services, ICICI Securities and Kotak Mahindra Capital Company were the lead managers of Indigo Paints IPO.
Indigo Paints IPO was the second public issue to hit the primary markets in 2021, after Indian Railway Finance Corporation’s IPO.
As of 10:12 am, Indigo Paints shares traded 68 per cent higher at Rs 2,503 from its issue price of Rs 1,490.