India Digest: ADB puts $10m in Tata Capital fund; Indigo Paints raises $47.5m
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The Asian Development Bank (ADB) has made a $10 million equity investment in Tata Capital Growth Fund II LP (TCGF II). Separately, Indigo Paints has garnered about Rs 348 crore from 25 anchor investors ahead of its initial public offering (IPO).
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Updated Jan 20, 2021 | 16:54 IST
Indigo Paints is a pure-play decorative paint company that has managed to grow at a CAGR of 42% in the last decade vs 13% which the market leader, Asian Paints grew at. Indigo Paints IPO issue subscribed 1.6 times on day 1, retail portion booked 2.8 times
New Delhi: The initial public offering of Indigo Paints, the fifth-largest decorative paints company in India, was subscribed 1.42 times as of 3:20 pm. on January 20, according to data available on the bourses. The IPO will close on January 22.
The public issue has received bids for 88.54 lakh equity shares against an offer size of 55.18 lakh shares (excluding anchor book). The IPO got off to a good start on Wednesday with the issue receiving 8 per cent bids within just the first 15 minutes By 10:15 am, the issue received bids for 4,17,240 shares, representing 8 per cent of the issue size of 55,18,402 shares.
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Indigo Paints IPO opens today
Sequoia Capital-backed Indigo Paints initial public offering (IPO) will open for public subscription on Wednesday (January 20). The company has fixed a price band of Rs 1,488-1,490 a share for its initial share-sale. The three-day IPO will conclude on January 22.
The IPO comprises fresh issuance 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, through its two funds SCI Investments IV and SCI Investments V and promoter Hemant Jalan.
Indigo Paints anchor investors
The anchor investors portion opened for subscription on January 19. The company said that it mopped up Rs 348 crore from anchor investors ahead of its initial share-sale. A total of 23,35,020 shares have been allotted to 25 anchor investors at Rs 1,490 apiece, which is the upper end of the price band. At this price, the company mobilised Rs 348 crore.
Updated Jan 20, 2021 | 13:37 IST
Indigo Paints IPO opens for subscription today. It raised Rs 348 cr from 25 anchor investors ahead of the IPO. Hemant Jalan, CMD says anchor investors have found the valuation to be reasonable. Representational Image
Key Highlights
FIIs like Capital Group, Government of Singapore Investment Corporation, Fidelity, Goldman Sachs have invested while DIIs like SBI MF, HDFC MF, ICICI Prudential MF are the other anchor investors
At Rs. 1490/share at the upper band, the FY21e P/E comes to 130x which is significantly higher than the average P/E of 95x for the paint industry
CMD, Hemant Jalan says anchor investors have found the price point of Rs 1490/share reasonable and one that leaves enough room to make gains post listing
A total of 23,35,020 shares have been allotted to 25 anchor investors at Rs 1,490 apiece, which is the upper end of the price band, the company said in a statement.