InvestorQ : How was the listing of Indigo Paints on 02 Feb?
indhumathi Sayani made post

How was the listing of Indigo Paints on 02 Feb?

11 months ago

Indigo Paints Ltd made an impressing opening in the IPO listing on 02 Feb, listing at Rs.2607, a premium of 75% over its issue price of Rs.1490. It might be recollected that the Rs.1176 crore IPO had been oversubscribed 117 times and the grey market premium or GMP was hinting at a strong premium listing of the stock.

Indigo enjoys ROE of 28% and ROCE of 23%. At the same time, the solvency ratios have got a boost from the fact that the net debt / equity ratio stands at just about 0.1X. This is expected to get close to zero post the IPO. The issue pricing has also been reasonable if not too cheap or rich with valuation pegged at 11.3X Price / Sales ratio.

Indigo Paints operates 3 manufacturing facilities in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). The company has a total installed production capacity of 101,903 KL per annum for liquid paints and 93,118 TPA for putties and powder paints.