Last year, due to the tremendous response received by almost all the IPOs, this time also the IPO market will be quite buzzing. The IPOs that will come to the market this month include the IPO of Indigo Paints. The IPO of Indigo Paints is the country’s fifth largest decorative paint company, will open for subscription on January 20 and will close on January 22.
The company will raise 1000 crores from the IPO
The IPO of Indigo Paints is ready to enter the market for subscription, but it seems to be trading at a premium in the grey market before the IPO comes on 20 January. The company will raise Rs 1000 crore through an IPO. After the announcement of the IPO, it seems to be trading at a 50 per cent premium to the higher band of Rs 1490 for its issue price. Its grey market premium market on January 15 was around Rs 840-850. That is, on that day it was selling between two prices, Rs 340-2 and Rs 330. Its issue price is Rs 1490 as per IPO Watch figures. There was a huge jump in the premium of this IPO from January 11 to January 15 in the grey market.
Indigo will expand the plant with the money of IPO
The promoters and investors of the company will sell shares of Rs 58.40 lakh. The company’s 70,000 equity shares will be reserved for employees’ subscriptions. Its price band has been fixed at Rs 1480-1490. Each lot will be of 10 shares. The company will use the funds raised from the IPO to expand its manufacturing unit in Tamil Nadu. Apart from this, a separate plant will be built at a cost of Rs 150 crore. The company has three manufacturing plants. These plants are in Jodhpur, Kochi and Pudukkotai in Tamil Nadu.