Indigo Paints Makes Stellar Stock Market Debut, Lists At Premium Of 75%

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..The paint industry is valued at about Rs 54,500 crore and is expected to grow to Rs 97,100 crore by 2024, according to the company's prospectus..Conglomerate Grasim Industries Ltd announced its foray into the paint industry last month, with a Rs 5,000 crore investment, citing robust outlook for the organized sector..India has seen robust responses to consumer-focused IPOs and market debuts in recent months, as the stock market galloped to record highs on strong foreign inflows, boosted by coronavirus vaccine hopes and abundant liquidity in global markets..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.

Indigo Paints Makes Stellar Stock Market Debut, Lists At Premium Of 75%

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