Indigo Paints Limited IPO

Indigo Paints Limited IPO

Indigo Paints is the fastest growing amongst the top five paint companies in India. We are the fifth-largest company in the Indian decorative paint industry in terms of its revenue from operations for Fiscal 2020. Indigo has achieved this position in a highly competitive Indian decorative paint industry on the back of our multi-pronged approach.

This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for our primary consumer brand, creating an extensive distribution network, and installing tinting machines across our dealer network.

Indigo Paints has a strong market network with dealers in Tier 1, Tier 2, and Metros as well. It has 3 manufacturing facilities situated in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). It is further looking to expand its manufacturing capacities at Pudukkottai to manufacture water-based paints.

As of September 30, 2020, Indigo Paints owns and operates three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.

As of September 30, 2020, Indigo Paints distributed their products to a network of 10,988 Active Dealers. In the six months ended September 30, 2020, their overall capacity utilization for liquid paint production was 20.77% and for powder, paint production was 57.98%.

Product Portfolio

Unique Products in the Existing categories: 

    • Dirt-proof & Water-proof Exterior Laminate – Indigo Paints launched India’s first and only paint that gives equally effective protection from dirt as well as water. It offers superior resistance from dirt, while the silicone polymer repels water, and offers the walls an extremely smooth finish.
    • Acrylic Laminate – Indigo Acrylic Laminate is a premium quality emulsion that gives the walls (both exterior and interior walls) a rich sheen finish offering a high-quality finish to the walls;
    • PU Super Gloss Enamels – Indigo Paints’ PU Super Gloss Enamel is an all-surface enamel paint that delivers superior gloss and protects wood and metal with its anti-fungal and non-yellowing properties; and
    • Polymer Putty – Indigo Paints’ Polymer Putty is a white cement-based putty with special polymers that gives double protection to the wall with a smooth and bright finish.

Unique Products disrupting the market to create a New Category (the first company to launch these products) 

    • Metallic Emulsion (Walls) – Indigo Paints pioneered the Metallic Emulsion segment, which gives a designer finish with glossy metallic texture effect. This has been used to glam up spaces suitable for interior and exterior walls of homes and offices and is available in shades of Gold, Silver, and Copper.
    • Tile Coat Emulsion (Roof Tiles) – The Tile Coat Paint is a special paint for external roof tiles that provides unmatched gloss and sheen with excellent protection against algae and fungus.
    • Bright Ceiling Coat (Interior Ceilings) – Indigo Paints created a new category for Ceiling Paints with the introduction of the Bright Ceiling Coat which offers unmatched brightness to the ceilings with a smooth matt finish to enhance the brightness of the room.
    • Floor Coat Emulsion (Driveways) – This is India’s first Floor Coat Paint that offers a glossy finish while also protecting the terrace floor, driveways, walkways and cement surfaces.

Strengths of the Company:

    • Track record of consistent growth in a fast-growing industry with significant entry barriers.
    • Differentiated products leading to greater brand recognition and enabling expansion into a complete range of decorative paint products.
    • Focused brand-building initiatives to gradually build brand equity.
    • The extensive distribution network for better brand penetration.
    • Leveraged brand equity and distribution network to populate tinting machines.
    • Strategically located manufacturing facilities with proximity to raw materials.
    • Well-qualified and professional management team with a committed employee base.

IPO Details:

IPO Date January 20, 2021, to January 22, 2021
Issue Type Book Built Issue IPO
Issue Size Equity Shares of Rs.10 totalling up to Rs.1169.12 Crore
Fresh Issue Equity Shares of Rs.10 totalling up to Rs.300 Crore
Offer for Sale 5,840,000 Equity Shares of Rs.10
Face Value Rs.10 per equity share
IPO Price Rs.1480 to Rs.1490 per equity share
Min Order Quantity 10
Listing At BSE, NSE

IPO Objective:

Offer For Sale: OFS money will not be received by the company.

Fresh Issue:

    • To meet the capital expenditure requirements for manufacturing facility expansion at Pudukkottai, Tamil Nadu.
    • To purchase tinting machines and gyro shakers.
    • To repay all or certain borrowings.
    • To meet general corporate purposes.

Financial Performance:

Financial Performance (in INR crore)
  FY2018 FY2019 FY2020 H1 FY2021
Revenue 403.1 537.3 626.4 260.2
Expenses 389.2 503.2 559 225
Net income 13.2 27 47.7 27.2
Net margin (%) 3.3 5 7.6 10.5

Tentative Time Table:

Date Event
14 Jan 2021 Price Band announced
18 Jan 2021 Anchor List
20 Jan 2021 Offer Opens
22 Jan 2021 Offer Closes
27 Jan 2021 Finalization of Basis of Allotment
28 Jan 2021 Unblocking of ASBA
29 Jan 2021 Credit to Demat Accounts
02 Feb 2021 Listing on NSE & BSE


Among the top 5 in the Decorative Paint Industry in India, Indigo Paints is growing over 40% CAGR in terms of sales since inception. Revenue from operations has grown by 16.65% between FY19 to FY20, against the range of (8.8)% to 4.9% compared to peers. The quality of the paints is good, especially the exterior ones. The net margin of the company has been improving. We assign a “Subscribe” rating for listing gain and long-term eyeing the growth of their innovative products and their penetration in 3-tier and 4-tier cities.

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