Upcoming IPO in market: Indigo paints

The fifth largest paint company in India – Indigo Paints launched its initial public offering on 20th January at a price band of Rs 1488 – 1490 per share.

The public offering comprises of Rs 300 Crore worth of fresh issue and offer for sale of 58,40,000 equity shares by promoters and investors.

The company has demonstrated tremendous growth in the last decade compared to its peers due to expansion programs, cost control measures, low debts and a favorable growth valuation equation.

Considering the growth of the company, many reputed brokers and investment advisors have recommended to invest in the public issue.

The company was incorporated in the year 2000 and has been the fastest growing in the top 5 companies in India, including Asian Paints, Kansai Nerolac and Berger Paints. The company enjoys a large presence in tier – III and IV towns and rural areas and has a strong portfolio of differentiated products.

Indigo Paints hold a market share of around 2 per cent in the highly competitive and oligopolistic decorative paints industry. It is the first company to introduce certain products including Metallic Emulsions, Tile Coat Emulsions and PU Super Gloss Enamel.

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