What has been the response to the IPO of Indigo Paints on the first day of the issue?

At the end of day-1 of the IPO, Indigo Paints IPO got subscribed 1.9 times overall. There was substantial interest visible from the retail segment for the IPO. The retail portion which has got a 35% allocation, got subscribed 3.3 times. On the other hand, the HNI component, with a 15% allocation, got subscribed 1.1 times.

The qualified institutional buyer or QIB portion has been subscribed only about 0.1 times but that normally gets largely bunched only on the last day. That should get through if you consider the strong appetite seen in the anchor placement of the shares. Indigo happens to be the fifth largest player in the decorative paints segment after Asian Paints, Berger, Akzo and Nerolac.

IT may be recollected that the anchor placement worth Rs.348 crore on 19-Jan was a very strong indication of the institutional appetite for the stock. Some of the key names that took the anchor shares of Indigo Paints include marquee names like Goldman Sachs, Government of Singapore, Fidelity, HSBC and local names like SBI MF, HDFC MF and ICICI Pru MF. Sequoia has been among the early investors in Indigo Paints.