Indigo Paints IPO is scheduled to go live on 20 January 2021 as India’s second IPO in the ongoing year. Following a volatile 2020, markets are looking much better now with several interesting IPOs lined up for this year. Meanwhile, Indigo Paints IPO GMP indicates there is a strong demand and fancy for this paint company in the informal market. Here is a closer look at the IPO details:
Indigo Paints IPO details
| Subscription Dates | 20 – 22 January 2021 |
| Price Band | INR1,488 – 1,490 per share |
| Fresh issue | INR300 crore |
| Offer For Sale | 5,840,000 shares (INR868.99 – 870.16 crore) |
| Total IPO size | INR1,168.99 – 1,170.16 crore |
| Minimum bid (lot size) | 10 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
From revenue of INR403.1 crore in FY2018, Indigo Paints posted a topline of INR626.4 crore in FY2020 and has raked in INR260.2 crore even in the first six months of the current fiscal year despite the impact of Covid-19. In these years, it has also managed to post consistently higher profits and its profitability reached a peak of 10.5% in H1FY2021. For the year ended 31 March 2020, the company also posted a health RONW of 24.27% although the offer’s PE ratio is quite high at 142.
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Indigo Paints IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 1 Feb 2021 | 800 | 700 | 6,500 |
| 30 Jan 2021 | 750 | 600 | 6,000 |
| 29 Jan 2021 | 700 | 550 | 5,700 |
| 28 Jan 2021 | 650 | 500 | 5,500 |
| 27 Jan 2021 | 750 | 650 | 6,500 |
| 25 Jan 2021 | 800 | 700 | 6,500 |
| 23 Jan 2021 | 820 | 750 | 7,000 |
| 22 Jan 2021 | 800 | 750 | 7,000 |
| 21 Jan 2021 | 750 | 700 | 6,000 |
| 20 Jan 2021 | 790 | 750 | 6,000 |
| 19 Jan 2021 | 770 | 700 | 6,500 |
| 18 Jan 2021 | 800 | 750 | 7,000 |
| 15 Jan 2021 | 820 | 800 | 7,000 |
| 14 Jan 2021 | 800 | 780 | 7,000 |
| 13 Jan 2021 | 800 | 750 | 7,000 |
| 12 Jan 2021 | 800 | 750 | 7,000 |
The company’s strong business growth is the prime reason behind the grey market premium. At the current rates, the premium in the informal market is nearly 55% of the offer price which is quite strong. Although grey premiums are prone for wild moves and extreme volatility, it shows that there is appetite for high growth companies at even higher valuations.
Should I invest in this ipo? Will I get double profit?
Iam professional yogi 😎
Premium will go down further because this was just artificially created. Nothing genuine.
Good ipo